SBI Plot Loan

SBI Plot loan

This is a plot loan, sometimes known as land loan, offered by SBI that enables a borrower to buy a plot for the purpose of construction. However, the construction of the unit should take place within 5 years of the loan being sanctioned. This SBI land loan offers a maximum loan amount of Rs.15 crore.

Features of SBI Plot loan

• This SBI plot loan interest rate is competitive and affordable
• This land loan also associated with a low processing fee
• No hidden charges while availing the SBI plot loan
• SBI realty home loan doesn’t charge for prepayment
• Interest on this SBI plot loan is charged on the daily reducing balance method
• The repayment period for this can go up to 10 years
• SBI realty home offers a concession on interest for women employees.

SBI Plot Loan Interest Rates 2023

The interest rates for SBI plot loan effective from 20 August 2022 are as given below:

The above-mentioned interest rates are for the first five years.

• For individuals who fall between Risk Grade 04 and Risk Grade 06, 10 bps will be added to the interest rate.
• An additional 05 bps will be added to individuals who do not have a salary account with SBI.
• A 5 bps concession on the interest rate will be given to women.

SBI Land Loan Pre-sanction Fee

• An advocate’s fee will be charged for investigation and search report
• A valuer’s fee also will be charged for the valuation report

SBI Land Loan Post-sanction Fee

• Stamp duty charges will be levied for the loan agreement
• Insurance charges will be levied on the borrower
• Registration fee too will have to be borne by the borrower

SBI Plot Loan Eligibility Criteria

• The applicant for the SBI plot loan must be an Indian resident
• The applicant minimum Age: 18 years
• The applicant maximum Age: 65 years
• The maximum loan tenure for the SBI plot loan is 10 years

SBI Plot Loan Documents Required

• Identification card from the employer
• Duly filled loan application
• 3 passport size photographs
• Identity proof: Passport, Voters ID, PAN card, Driving licence
• Proof of residence: Telephone Bills, Voters ID card,Electricity Bill, Property tax receipt, Passport
• In case of non salaried applicants, a proof of business address must be provided
• Bank statement or passbook statement for the last 6 months
• Identification signatures from the current bank
• Statement of personal liabilities and assets
• Salary statement from employer in case of a salaried applicant
• Form 16 / ITR of the last two years
• Receipt of Income Tax paid in case of a self employed applicant
• Copy of income returns in case of a self employed applicant

Additional documents to be submitted (Salaried and Self-employed)

There are certain additional documents which needs to be submitted by salaried and self-employed applicants when availing SBI plot loan.

For Salaried applicants:

• Original salary certificate issued by employer
• Copy of IT returns for last two financial years acknowledged by IT department/TDS certificate on Form 16

For self-employed applicants:

• Copy of challans highlighting payment of Advance Income Tax
• Copies of I.T. returns or assessment orders for the last three years

Documentation for guarantor, if applicable

• Personal assets and liabilities statement
• 2 passport size photographs
• Identification documents as mentioned above
• Proof of residence as mentioned above
• Proof of business as mentioned above
• Identification signatures from the present bank

FAQs on SBI Realty Home Loan

1. In what situations in SBI plot loan beneficial?

   If you want to buy a house but currently can’t afford it or when you want to buy just a plot for investment purposes, SBI plot loans will be highly beneficial. As an added benefit, you can also avail extension loans from State Bank of India for construction of houses if you want to.

2. In case of agricultural plot loans, the loan amount is considered for what purposes?

   The loan amount may be considered for the purposes of purchase of farm equipments, stamp duty and registration charges, cost of land and for development of irrigation facilities and land development not exceeding 50% of the land cost.

3. Do we have gestation period for agricultural plot loans?

   Yes, gestation period will be 2 years in case of land to be developed and will be a maximum of 1 year in case of developed land. After the gestation period, a maximum of 9 to 10 years can be taken for repayment of loan.

4. How to apply for SBI plot loans?

   Customers can visit the nearest branch officer or enquire with the SBI marketing officers. Alternatively, customers can also choose to apply loan online.

5. What quantum of loan will be offered as loan for the purchase of agricultural plots?

   A maximum of 85% of the cost of the land as assessed by the bank will be provided. The quantum of plot loan is also based on the security (maximum of Rs.5 lakhs)