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  • SBI Gram Niwas for Rural Housing Loan

    State Bank of India (SBI) is the largest banking institution in India. The bank operates over 14,000 branches in the country. SBI provides a wide range of banking and financial products that cater to the needs of customers from all walks of life. SBI home loans provide fuel to the Indian dream of owning a house and help millions of people in the country to live in the house of their dreams. The different types of home loan schemes offered by the State Bank of India are: SBI Maxgain, SBI Yuva Home Loan, NRI Home Loans, SBI Realty, SBI PAL, SBI Tribal Plus, SBI Sahyog Niwa and SBI Gram Niwas.

    SBI Gram Niwas home loan scheme empowers people in rural and semi urban areas of the country to become home owners. It comes with many borrower-centric features like flexible tenure, minimum documentation and low interest rates that make it very popular.

    Features and Benefits

    The features and benefits of State Bank of India Gram Niwas Home Loan Scheme are as follows:

    • Provides Extended Coverage:

      All semi-urban and rural areas that have a population of maximum 50,000 people (according to 2001 census) are covered by this scheme.

    • Offers Loans For Multitude of Reasons:

      Under the Gram Niwas scheme, loans are sanctioned for the purpose of helping borrowers in renovating, repairing, constructing and purchasing houses in rural or semi-urban areas.

    • Covers The Purchase of Plots:

      The scheme also covers the purchase of plots in order to construct a shed or a house and not just the purchase of already constructed houses.

    • Offers Higher Loan Amount:

      The maximum loan amount offered under the SBI Gram Niwas Home Loan Scheme is Rs 5 lakhs.

    • Comes with Flexible Repayment Period:

      The loans under this scheme come with a repayment period of maximum 15 years.

    • Comes with Zero Processing Fees and No Minimum Loan Amount:

      There are no processing fees for home loans availed under this scheme meant for people in rural and semi-urban areas. Also, there is no minimum loan amount and eligible people can borrow amounts based on their needs.

    SBI Gram Niwas Loan Eligibility

    • The applicant should be aged 18 and above
    • The applicant should not be more than 70 years of age when the tenure of the loan ends
    • The applicant should be a citizen of India.

    SBI Gram Niwas Home Loan Interest Rate

    The interest rate for SBI Gram Niwas Home Loans is the same as for other general housing finance schemes – that is, 20 to 25 bps more than the MCLR rate. Processing fees is waived under this scheme.

    SBI Gram Niwas Home Loan MCLR Rate

    SBI’s Marginal Cost of Funds-Based Lending Rate (MCLR) as on April 1, 2016, is 9.2%. The bank will consider the 1-year MCLR rate as its benchmark for home loans, and the interest rate will be reset every year.

    The spread above MCLR for Gram Niwas home loans are as follows:

    Category Interest rate
    For women 20 basis points more than the MCLR i.e. 9.4% p.a.
    For others 25 basis points more than the MCLR i.e. 9.45% p.a.

    FAQs about SBI Gram Niwas Home Loan:

    1. What is the processing fee charged for home loans offered under this scheme?

      The processing fee is waived for home loans offered under this scheme.

    2. I am 65 years old. If I avail a home loan under this scheme, how many years will I get to repay the loan?

      You will have 5 years to repay the loan as it should be repaid by the time you are 70 years of age.

    3. Do women get any concession on the interest rate?

      Yes, women get a concession of 5 bps on the interest rate i.e. they are charged an interest rate of 9.85% p.a. (the base rate).

    4. Where can I download the application form for SBI Home Loans?

      You can download the form from the website of the bank.

    5. I do not have a passport. Can I provide a photocopy of my PAN card as identity proof?

      Yes, a photocopy of your PAN card can be provided as an identity proof.

    In conclusion, SBI Gram Niwas scheme offers people in rural and semi-urban areas with the ideal opportunity to become home owners.


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