SBI Plot Loan

Last Updated 11th Aug 2020

SBI Land Loan 2020

6th August 2020 – RBI keeps Repo Rate unchanged at 4%

Interest Rate 8.05%
Maximum Loan Amount Upto 90% of property value
Processing fee Upto 0.20%; Min 4,000; Max 17,400
Maximum Tenure 30 years
Lowest EMI Per Lakh Rs. 840 for 30 years
  • SBI plot loan interest rate starts at 8.05%.
  • SBI land loan can be availed by both salaried and self-employed with good credit score.
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SBI Plot Loan Interest Rate

Lowest SBI plot loan rate is 8.05%, as applicable based on the . Any change in will translate into a similar change in the bank’s land loan rate. SBI’s interest rates on loan for land purchase depend upon the loan amount, salary and occupation of the borrower and nature of the property.

Loan AmountRateRate for Female BorrowerRate
Upto ₹ 30 Lakh8.10%8.05%N/A
₹ 30 Lakh - ₹ 75 Lakh8.20%8.15%N/A
₹ 75 Lakh - ₹ 1 Cr8.30%8.25%N/A
Above ₹ 1 Cr8.30%8.25%N/A

Loan for land purchase SBI

SBI loan for land purchase can be taken for different purposes by different borrowers. It can be taken either for the purchase of land for investment purposes, to construct a dream home, to construct one's desired personal space, or to conduct agricultural activities on that loan. SBI provides the following land loans to its customers.

SBI plot loans can be availed by both salaried and self-employed people who hold a good credit report. However, the borrower needs to meet the required eligibility factors. The loan can be availed for a maximum period of 30 years, which may differ based on the borrower's needs and repayment ability. Currently SBI plot loan interest rate ranges between 8.05% to 12.40%. However, SBI land loan interest rate may vary across borrowers based on occupation and income status.

SBI Realty Home Loan

  • This loan is taken to purchase a plot or land to construct a home on the same.
  • SBI Realty home loan allows home loans customers to purchase a plot for the construction of a house. However, the construction of the house on this plot must be completed within five years from the date of loan sanction. In addition, Existing SBI home loan customers can also avail another home loan for construction of the house on the plot financed as per the SBI plot loan scheme. In such a case, outstanding in realty account will be first liquidated through disbursement from a home loan, and the remaining amount will be disbursed for construction of house in phases linked to the stages of construction.

SBI Land Loan Features

Features of SBI loan for plot purchase are listed as follows:

  • Loan to Value Ratio: The LTV ratio or Loan to Value ratio in case of a plot loan is comparatively lower. SBI offers plot loan upto 90% of the cost of the property. However, the risk score of the customer is also an important feature for the LTV ratio in the case of SBI plot loan.
  • Property Type: SBI site loan is exclusive to some properties and not applicable to others. When the borrower plans to opt for a SBI land loan, he needs to ensure certain things, for instance, the land must be located within the municipal limits. Further, it should not be located in an area that is under conflicts regarding authorizations or previous ownerships.
  • Loan Tenure: The time period for which you can avail a SBI land loan is comparatively lower than that of a home loan. It may be borrowed for a maximum amount of 30 years which may vary across the customer's repayment ability.

SBI Land Loan Benefits

Some of the benefits of availing SBI Land loan are:

  • Tax Benefits: A plot loan may not provide any tax benefit when availed on its own. However, if you avail SBI plot and construction loan, the borrower may enjoy a tax benefit on the construction loan. This means a plot loan provides benefits if availed together with a construction loan.
  • Specific to borrower's need: A plot loan is beneficial to the borrower as it is much specific to his or her needs in comparison to a home loan. Through SBI land purchase loan, a customer can design and create his own space as per his or her needs. Thus, a plot loan caters to the needs of the borrowers in comparison to an already constructed home.
  • Affordable: Another key benefit of SBI plot loans is that it is very affordable in nature. Plot loan by SBI offers low processing fee at Upto 0.20%; Min 4,000; Max 17,400 and borrowers do not lose out from the loan amount in terms of processing fee. Further, the prepayment penalty is very low. It is even NIL in case of floating rate loan for individuals.

SBI loan for plot purchase Eligibility Criteria

  • Home loan seekers with good cibil score of 650 and above can apply for this loan.
  • Applicants with a net annual income of up to Rs 2 lakhs can also apply, however, the EMI, in this case, should not exceed 30% of the income.
  • Customers who are willing to purchase a plot and to construct a house on it.

Documents Required for SBI Land loan

In order to avail of a plot loan, a borrower needs to meet the documentation process. The required document for a plot loan are:

  • Identity proofs: This includes Aadhar Card, PAN card, passport, driving license
  • Address proofs: This includes Voter ID card, ration card, rent agreement
  • Utility bills: Telephone, electricity bill, water bill, etc.
  • Bank documents: Copies of bank statement and passbook
  • Salary documents: salary slips, ITR returns and qualification certificates in case of self-employed professionals
  • Others: Sale Deed or Sale purchase agreements

Other Home Loan Products

  • SBI Flexipay Home Loan
  • SBI Realty
  • SBI Pal
  • SBI Tribal Plus
  • SBI Bridge Loan
  • SBI NRI Home Loan
  • SBI Privilege Home Loan
  • SBI Shaurya Home Loan
  • SBI Top Up Loan
  • SBI Reverse Mortgage Home Loan
  • SBI Repo Rate Home Loan

FAQs on SBI Land Loan

How long will it take for SBI land loan approval?

SBI land loan is approved after meeting the required eligibility conditions and fulfilling the documentation requirements. Borrowers can even get instant approvals on plot loans through the online application portal.

What is the interest rate of a plot loan in SBI?

The interest rate of SBI plot loan ranges between 8.05% to 12.40%.

What is the processing fee for SBI land loans?

The processing fee for SBI land loan is Upto 0.20%; Min 4,000; Max 17,400.

Can I get a loan on land purchase from SBI?

Yes, you can get a loan for land purchase from SBI through the SBI Realty Home Loan.

Can self-employed people avail SBI Plot loan?

SBI plot loan can be availed by salaried and self-employed people who have a decent credit track record.

SBI Home Loan News - Aug 2020
*Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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