SBI Plot Loan

Plot loans are designed to facilitate individuals' development or purchase of their desired land without waiting a long time. Borrowers must repay the amount and some added interest within a selected period. Hence, the State Bank of India (SBI) offers a loan scheme known as the SBI Plot loan to help individuals purchase the land of their choice. It enables every borrower to realize their aspirations of owning valuable real estate anywhere in India.

SBI land loan scheme involves evaluating factors like location, market value, potential use of land, and more to ensure a comprehensive approach to plot financing. However, the construction of the property should be completed within 3 years from the commencement date of the SBI home loan for plot purchase. You can apply for an SBI land loan from the Urban Money website and enjoy the benefits of seamless procedures in your journey. Stay tuned to check out the SBI plot loan interest rates, eligibility criteria, features, and more.

SBI Plot Loan Interest Rates

The following table highlights the SBI plot loan interest rates and other key parameters you should know about  State Bank of India plot loans: 

SBI Plot Loan Interest Rates Interest rates as low as 9.40% – 9.85% p.a. on plot loans
Maximum Loan Amount The maximum amount is 15 crores. 70% of property value and 80% of construction value can be sanctioned  
Processing Fees A low processing fee of 0.35% of the borrowed amount, exclusive of taxes. 
Loan Tenure Up to 10 years

Note: The interest rate is subject to change based on the applicant's credit score, loan amount, and tenure.

SBI Plot Loan Fees and Charges

Let’s understand the fees and charges associated with an SBI plot loan for land purchase:

Processing Fee: A low processing fee of 0.35% of the borrowed amount, excluding taxes. Within the range of 2,000-10,000, with a minimum requirement of 2,000.
Prepayment Charges: There are no penalties for prepayment when repaying per installment.
Hidden Charges: No hidden charges are applicable.
Interest Charges: Interest Charges are based on the daily reducing balance.
Interest Concessions: Interestingly, female candidates are given a concession of 0.5% on an SBI bank plot loan.
CIBIL Score: The CIBIL score of 750 and above is considered healthy to qualify for a State Bank of India plot loan.

SBI Plot Loan Eligibility Criteria for Salaried Employees

The eligibility criteria for salaried employees to qualify for an SBI home loan for plot purchase include the following factors:

  • Age Qualifications: Applicant should be between 18-85 years old to qualify for an SBI land loan.
  • Nationality: He/She must be a citizen of India.
  • Loan Tenure: Up to 10 years
  • Credit History: A positive credit score of 750 or above and a history of time repayments are prerequisites. 

SBI Plot Loan Eligibility Criteria for Self-Employed Applicants

The eligibility criteria for self-employed individuals to qualify for an SBI home loan for plot purchase include the following factors:

  • Age Qualifications: Applicant should be between 18-85 years old to qualify for an SBI land loan.
  • Nationality: He/She must be a citizen of India.
  • Loan Tenure: Up to 10 years
  • Credit History: A positive credit score of 750 or above and a history of time repayments are prerequisites. 

SBI Plot Loan Documents Required for Salaried Employees

In the table below, we have mentioned the list of all the applicable documents that are required for salaried individuals in order to avoid any complications in the SBI plot loan application process: 

Identity Verification
  • PAN ID
  • Passport, 
  • Voter’s card, 
  • Adhaar Card, 
  • Driving License
Address Verification
  • Utility Bills
  • Property tax receipts
  • Passport
  • Voter’s ID 
Income Proof
  • 3 months and 6 months financial statements of salary account 
  • Salary Certificate from current employer
  • TDS certificate on Form 16 or IT Returns copy for 2 previous financial years.
Additional Documents
  • Employer Identity Card
  • Filled application form
  • Passport size photographs 
  • Proof of business address for non-salaried individuals
  • Statement of Bank Account/ Pass Book for the last six months
  • Signature identification from current bankers
  • Statement detailing personal Assets and liabilities 
Documents For Guarantor (Wherever Applicable)
  • Statement of Personal Assets and Liabilities 
  • 2 passport-size photographs
  • Identity proof
  • Address proof
  • Employment proof
  • Signature identification from their current bankers

SBI Plot Loan Documents Required for Self-Employed Applicants

In the table below, we have mentioned the list of all the applicable documents that is required for self-employed individuals in order to avoid any complications in the SBI plot loan application process:

Identity Verification
  • Pan ID, 
  • Passport, 
  • Voter’s ID, 
  • Adhaar Card, 
  • Driving License
Address Verification
  • Electricity Bills
  • Property tax receipts
  • Passport
  • Voters ID card
Income Proof
  • Audited bank statements of past 24 months.
  • Received copies of consecutive three-year I.T. returns/ Assessment Orders.
  • Copies of challans as evidence of Advance Income Tax
Additional Documents
  • Employer Identity Card
  • Application form
  • Passport size photographs 
  • Proof of business address for non-salaried individuals
  • Statement of Bank Account/ Pass Book for the last six months
  • Signature identification from current bankers
  • Statement detailing personal Assets and liabilities 
Documents For Guarantor (Wherever Applicable)
  • Statement of Personal Assets and Liabilities 
  • 2 passport-size photographs
  • Identity proof
  • Address proof
  • Employment proof
  • Signature identification from their current bankers

Features of SBI Plot Loans

Let’s take a quick look at the snapshot of SBI land loan features:

Maximum SBI Plot Loan Amount Borrowers can avail upto 15 crores.
Sanctioned Value 70% of plot and 80% of construction value will be authorized.
Hidden Charges No hidden charges
Interest Concession A concession interest of 0.5% applies to female applicants
Credit Score A CIBIL score of 750 upwards is considered healthy.

Things to Remember while Applying for an SBI Plot Loan

An applicant should keep the following things in mind before applying for an SBI plot loan:

  • Check your credit score before applying for the loan
  • Compare interest rates from different lenders
  • Choose a loan tenure that is comfortable for you
  • Provide all the required documents
  • Make sure you have a clear understanding of the terms and conditions of the loan
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