SBI Home Loans - Plot Loan

Plot loans offered by SBI are a financial product available under the SBI Realty Home Loan Scheme. This financial offering is ideal for you if you plan to purchase a residential plot for investment purposes and to build a house on it in the future. The Bank evaluates multiple factors like market value, location, land’s potential usage, and more before making its decision on plot financing.

One thing to keep in mind is that the commencement of the house construction process must take place within the first 5 years of sanctioning the loan to avoid any possible penalties and charges to the loan terms. 

On top of this, you can avail of a separate loan for construction as well from SBI along with the SBI Realty to fuel your homeownership dream. This combination helps you in long-term planning and avoids any future hindrances in building your dream home.

Features and Benefits

SBI Plot Loans are equipped with numerous features and benefits, which are as follows:

• Low Interest Rates: SBI Land loans feature a starting interest rate of 9.40% p.a., allowing many people to fulfill their desire for homeownership with attractive interest rate offerings.

• Low Processing Fee and No Penalty: With a lower processing fee of 0.35% of the loan amount and no prepayment penalty, people don’t need to pay a hefty amount apart from EMIs and interest rates 

• Special Benefits for Women Applicants: Plot loans in SBI offer a 05bps concession to women borrowers on interest rates.

• Daily Reducing Balance Interest Calculation: This allows you to pay interest only on the outstanding principal.

• Higher Loan Amount: By offering huge capital (up to Rs 15 crore) as a loan amount, SBI ensures you get a plot in your preferred locality.

• Flexible Repayment Tenure: The lender provides a maximum repayment tenure of up to 10 years with an easy EMI structure and some convenience during the plot phase. 

• Tax Benefits: Plot Loans, if intended to build a house, are eligible for tax deductions under Sections 80C and 24 B, making repayment affordable for borrowers to an extent.
  

Interest Rates and Processing Fees

The interest rates for SBI plot loans range from 9.40% – 9.85% p.a. for a CIBIL Score of 750 and above. Moreover, there is a 0.5% interest rate concession for female applicants as well to make homeownership affordable for them. 

The processing fee and other charges associated with Plot Loans in SBI are mentioned below in the table:

Eligibility Criteria

Documents Required

Application process for Plot Loans in SBI

To apply for SBI Plot loans, you can opt for both offline and online methods. Here we cover both methods for your convenience in applying for the SBI Realty Home Loan Scheme:

Online Method

• Step 1: Visit the official SBI website and find the plot loan section.

• Step 2: Provide your personal information, such as name, income, address, etc., and complete the online application form.

• Step 3: Provide scanned copies of the necessary documents. 

• Step 4: SBI will check your documents and approve your loan only after verifying that your documents are accurate.

• Step 5: After your loan gets approved, the bank will disburse the loan amount to you.

Offline Method

• Step 1: Visit your nearest SBI branch and apply for a plot loan.

• Step 2: Fill out the application form and submit it to the bank’s officer.

• Step 3: Submit photocopies of all necessary documents and the original documents to the bank.

• Step 4: The Bank will verify your documents to ensure their accuracy.

• Step 5: Lastly, the Bank will disburse the loan amount to you after your loan approval.

SBI Plot Loan Calculator

As you move forward to laying the foundation of your dream living space, you must have an accurate estimation of EMI, total interest amount, and total payable amount to measure and plan your repayment capacity efficiently.

SBI Plot Loan Calculator does exactly this thing for you. It’s a simple tool where you get an accurate estimation of these terms (EMI, total interest amount, and total payable amount) only by entering the following figures:

• Your desired loan amount

• Required Loan Tenure by you

• The Interest Rate (aligns with ongoing market rates for plot loans)

Just keep in mind to provide accurate inputs for the above-mentioned terms. So that you can receive accurate outputs. This productive tool offered by SBI helps you in planning your repayment journey effectively, guiding you towards important terms associated with the SBI Land Loans.

The following table features a simplified breakdown of how the SBI Plot Loan Calculator works. Let’s assume you input 10 years of loan tenure, Rs 5 crores of loan tenure, and an interest rate of 9.50% p.a. in the calculator:

Important Tips While Applying for SBI Plot Loans

 A gentle consideration of the following points while applying for land loans in SBI keeps your repayment journey on the right track through planning it effectively: 

• Compare interest rates offered by different lenders to gain more clarity on it. 

• Evaluate your credit score before moving to the loan application process to measure your eligibility for the loan.

• A comfortable loan tenure selection for your smooth repayment journey.

• Collect and prepare all the required documents to avoid any complexities during loan approval.

• Gauge your financial condition to see whether you can manage plot loans’ EMIs with another home loan for house construction concurrently.

• Gather all the important information on the SBI Plot Loan’s terms and conditions to be aware of any changes made by the lender during the loan tenure.

Differences between Plot loans and Home loans

Although Plot loans and home loans may sound similar. However, they both feature some obvious distinctions. Let’s understand it quickly from the following table: