A "low interest" loan shouldn't mean you have very little interest in paying it back!
  • SBI Realty Home Loan

    SBI Realty Home Loans are specifically meant for customers looking to purchase a plot for constructing a dwelling unit. However, the construction should be done within 5 years from the date of loan sanction.You can get a loan from SBI where interest rates start from 7.50% p.a.with this facility.

    Eligibility Criteria for SBI Realty Home Loan:

    If you want to avail an SBI Realty Home Loan , you need to meet the following criteria:

    • Minimum age: 18 years
    • Maximum age: 70 years at the time of maturity of loan
    • Income is an important eligibility criteria for SBI Realty Home Loan. The EMI you have to pay is based on your income. If your net annual income is up to Rs. 2 lakh, then your EMI cannot exceed 30% of the income. Similarly, with an income of up to Rs. 5 lakh, the EMI cannot be more than 40% of the income, for up to Rs. 10 lakh the maximum permissible EMI is 45% and for an income of more than Rs. 10 lakh, 50% of the income can be paid as EMI.
    • The construction of the house has to be completed within 2 years of taking the Realty Loan.
    • You must be able to pay off the loan in 15 years.
    • Your CIBIL score should be high.

    Documents Required for SBI Realty Home Loan

    Before applying for an SBI Realty Home Loan, make sure the following documents are in order:

    • Filled-up loan application (Application form needs to be fully and cautiously filled.)
    • 3 passport-sized photographs
    • Proof of identify (photo copies of Voter’s ID card/Passport/Driving licence/PAN card/Aadhaar card)
    • Proof of residence (photo copies of recent Telephone Bills/Electricity Bills/Property tax receipt/Passport/Voter’s ID card/Aadhaar card)
    • Statement of Bank Account/Pass Book for the last 6 months
    • Signature identification from your current bank
    • Personal Assets and Liabilities statement

    Salaried individuals need to provide these documents too:

    • Original Salary Certificate from employer
    • TDS certificate/Form 16/copy of IT Returns for the last 2 financial years, acknowledged by the I-T Department.

    Non-salaried individuals and entrepreneurs need the following documents in addition to the above:

    • Proof of business address
    • Acknowledged copies of 3 years’ I-T returns/Assessment Orders
    • Photocopies of challans showing payment of Advance Income Tax.

    If you are using a guarantor, the guarantor needs to submit the following documents:

    • Personal Assets and Liabilities Statement
    • 2 passport-sized photographs
    • Proof of identification
    • Proof of residence
    • Proof of business address
    • Signature identification from their bank

    SBI Realty Home Loan Features and Benefits

    The key features of the SBI Realty Home Loan are as given below:

    • The Realty Home Loan, as the name suggests, is meant for purchase of an undeveloped property rather than an apartment or bungalow ready for possession. You can also include the cost of building a house on the plot in the loan amount.
    • Attractive interest rates ranging from 7.50% p.a. to 7.70% p.a.
    • You can get loans of up to Rs. 75 Lakh.
    • The repayment tenure is up to 10 years, depending on your profile, age and income.
    • You can take additional home loan to construct the house after the plot is bought, and both the loans can be operated simultaneously.
    • To improve your chances of getting a loan, you can add the income of your spouse or children living with you, if their salary accounts are held in the SBI.
    • You do not have to pay any additional fees for making pre-payments or partial payments towards your loan amount. You can put in additional amount in your loan account whenever you can, and the amount will be reduced from the principal amount payable.
    • You also become a part of the State Bank Rewardz programme, which gives you reward points on each transaction.

    SBI Realty Home Loan Fees and Charges:

    The fees and charges applicable on an SBI home loan are:

      Scheme Name Processing Fees
      Loan against Mortgage of Immovable Property 1.01% of the Loan amount
      Rent Plus 2.02% of the Loan amount
    • Advocate’s fee: This will be charged for property search and title investigation report before the loan is approved. The amount will depend on the professional’s fees.
    • Valuer’s fee: A valuation report of the property, to be done before sanction of the loan, will be charged as applicable.
    • Stamp duty: Apart from the stamp duty on property registration that is included in the loan amount (or you may have decided to pay yourself), both the mortgage papers and the loan agreement has to be notarised on stamp paper. For this, a stamp duty needs to be paid to the bank.
    • Property insurance premium: Home insurance is automatically included when you take a home loan from SBI. However, you can choose to opt out of the insurance and insure your property with another insurer.
    • CERSAI Registration Fee: This refers to Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI), which is a centralised online mortgage registry in India. To register the mortgage of your property with CERSAI, the bank charges Rs. 250 and GST on loans of up to Rs. 5 lakh, and Rs. 500 and GST for amounts above Rs. 5 lakh.

    FAQs on SBI Realty Home Loan

    1. Can I take the SBI Realty Loan to buy a flat?

      No. SBI Realty Home Loan is specifically designed for the purpose of buying plots on which you can construct your own house.

    2. Can I take another home loan from SBI after taking a Realty Home Loan?

      Yes, you can. You can run concurrent home loans if the first loan taken was the SBI Realty Home Loan. This way, you can supplement the original amount and build your dream house.

    3. Is it possible for my husband and me to be joint applicants on a home loan application?

      Yes, absolutely. You can also avail the lower interest rate available for women if you are the sole applicant or the co-applicant. Your husband, however, will have to pay the normal interest rate.

    4. Do I need to pledge any collateral security with SBI for the Realty Home Loan?

      No. The plot of land you buy with the bank’s financing will be considered as mortgaged to SBI.


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