SBI Combo Home Loan

What is an SBI Combo home loan?

The SBI Combo home loan is meant for borrowers who want to buy a plot of land and construct their own house but prefer not having to deal with two different loan applications.

Under normal circumstances, buying a plot requires a land loan, and later, construction requires a separate housing loan. Each comes with separate documentation, approval timelines, and possibly different interest rates. The combo structure simplifies this process. This structure works as a specialised SBI home loan option for plot purchase plus construction under a single sanction.

Instead of splitting the financing into stages through separate products, SBI sanctions a single loan covering the cost of purchasing the residential plot and the estimated cost of construction.

The borrower receives approval for the full project value at the beginning. However, disbursement is staggered. First, the bank releases funds for the plot purchase. Construction funds are released in tranches after physical verification of work progress.

This structure suits the following kinds of borrowers:

• Those wanting to design and build their own home
• Those who do not want ready-built apartments
• Those who prefer financial clarity before beginning construction
• Those who wish to lock funding early rather than reapply later

The loan also ensures that construction begins within a specified timeline as defined in the sanction terms.

Features of an SBI Combo home loan

The table below lists the key features of an SBI Combo home loan and what they mean for you:

Features	What they mean for you
Unified sanction structure	The greatest strength of the SBI Combo home loan is that it removes duplication. There is one sanction letter, one account, and one repayment framework
Phased construction disbursement	Funds for construction are not released at once. They are disbursed after site inspections confirm completion of each stage, foundation, plinth, slab, roofing, and so on. This protects both the bank and borrower
Daily reducing interest calculation	Interest is calculated on the daily outstanding principal. If you prepay even a small amount, the interest is recalculated immediately on the lower balance
Pre-EMI option during construction	During the construction phase, the borrower may opt to pay only the interest portion. Full EMI starts after complete disbursement or after possession
Concessions for women borrowers	SBI may offer some interest concession if a woman is the primary or co-applicant
No prepayment penalty (floating rate)	Floating-rate loans can usually be prepaid from personal funds without any foreclosure charges
Long tenure window	Repayment tenure can extend up to 30 years, subject to age eligibility at maturity

What is the eligibility criteria For SBI Combo home loan?

Eligibility for the SBI Combo home loan combines standard housing loan requirements with additional scrutiny of construction plans. The table below lists the key eligibility criteria:

Eligibility criteria	What they mean
Residency	The scheme is open to resident Indians and eligible NRIs
Age	Minimum 18 years; maximum 70 years at loan maturity
Employment category	Salaried individuals Self-employed professionals Business owners Agriculturists (subject to income verification)
Income assessment	The bank evaluates gross and net income, stability of earnings, existing liabilities, and EMI-to-income ratio
Credit score	A CIBIL score of 650-700 is generally considered the minimum requirement; scores above 750 improve eligibility for better interest rates
Construction commitment	Borrowers must agree to start and complete construction within the stipulated period defined by SBI

What is the maximum home loan amount under SBI Combo home loan scheme?

The maximum loan amount is determined by the applicant’s repayment capacity, total project cost (plot + construction), and oan-to-Value (LTV) ratio.

This is the broad LTV structure:

• Up to ₹30 lakh: Up to 90% of project cost
• ₹30 lakh to ₹75 lakh: Up to 80%
• Above ₹75 lakh: Up to 75%

The total project cost must be supported by approved building plan, construction cost estimate, and legal title clearance.

There is no automatic flat cap applicable to all applicants. High-value loans depend entirely on documented repayment strength and project feasibility.

Processing fee and documentation Charges for SBI Combo home loan?

Typical charges associated with an SBI Combo home loan are listed in the table below:

Charge type	Details
Processing fee	0.35% of loan amount (Min ₹2,000; Max ₹10,000) + GST
CERSAI charges	₹50 (up to ₹5L) / ₹100 (above ₹5L) + GST
Legal/technical fees	As per the empanelled advocate and valuer
Commitment charges	May apply if construction is delayed beyond the approved timeline

The processing fee structure is more competitive than many private lenders. Floating-rate loans generally do not attract prepayment penalties if closed using own funds. Borrowers should verify the applicable charges at the time of application since these may change.

Documents required for SBI Combo home loan

Documentation involves both financial and project-level verification. If you are planning to apply for an SBI Combo home loan, here is a checklist of documents you will require:

KYC documents

• PAN Card
• Aadhaar Card
• Passport / Voter ID

Income proof (salaried)

• Last 3 months’ salary slips
• Form 16 (2 years)
• 6 months’ bank statements

Income proof (self-employed)

• Last 3 years’ ITR
• CA-certified balance sheet
• Profit and loss statement

Plot documents

• Registered sale agreement
• Clear title documents
• Encumbrance certificate

Construction documents

• Approved building plan
• Detailed construction cost estimate
• Architect certificate

Note that construction disbursement does not proceed without approved building plans.

How to apply for SBI Combo home loan?

Step 1: Start online

Visit SBI’s official home loan portal and choose the combo option.

Fill out your personal information, income details, and plot and construction details.

Step 2: In-principle approval

Based on declared details, SBI may provide provisional approval.

Step 3: Submit documents

Upload income and property documents digitally or submit them at the branch.

Step 4: Legal and technical review

SBI verifies the land title, building plan approval, construction estimate, and site conditions.

Step 5: Sanction and disbursement

After approval, the plot purchase amount is disbursed first, and construction funds are released in phases.

Approval timelines vary depending on the completeness of documentation and legal clearance.