SBI Loan for Land Purchase

SBI Plot Loans: Financing Your Land Purchase

The State Bank of India (SBI) offers plot loans, also known as land loans, enabling borrowers to purchase land for construction purposes. It is important to note that construction should commence within five years of loan approval. The maximum loan amount available under this program is Rs. 15 crore.

Key Features of SBI Plot Loans

• Competitive and reasonable plot loan interest rates.
• Minimal processing fees.
• No hidden charges when applying.
• Interest calculation is based on the daily reducing balance method.
• Repayment period of up to 10 years.
• Interest rate discounts available for female employees through SBI Realty Home.

Current Interest Rates for SBI Plot Loans (as of August 20, 2022)

Interest rate conditions:

• The above interest rates are applicable for the initial five years of the loan.
• Applicants falling under Risk Grades 04 to 6 are subject to a 10 basis point increase in the interest rate.
• Individuals without an SBI salary account will incur an additional 5 bps charge.
• A concession of 5 bps is available for female applicants.

Pre-Approval Fees

• Advocate's fee for investigation and search report.
• Valuer's fee for property valuation report.

Post-Approval Fees

• Stamp duty charges on the loan agreement.
• Insurance premiums.
• Property registration fees.

Eligibility Criteria

• Indian residency.
• Minimum age of 18 years.
• Maximum age of 65 years.
• A maximum loan tenure of 10 years.

Required Documents

• Employer ID card.
• Completed loan application form.
• Three passport-sized photographs.
• Identity proof (Passport, Voter ID, PAN Card, Driver's License).
• Proof of residence (Telephone bills, Voter ID, Electricity bills, Property tax receipts, Passport).
• Proof of business address for non-salaried individuals.
• Six months' bank statements or passbook.
• Signature verification from the current bank.
• Personal Assets and Liabilities Statement.
• Salary statement (for salaried applicants).
• IT returns for the previous two years (from 2016 onwards).
• Income tax paid receipt (for self-employed applicants).
• Copy of income tax returns (for self-employed individuals).

Additional Documentation (Salaried & Self-Employed Applicants)

Salaried:

• Original salary certificate from the employer.
• Copies of IT returns, acknowledgment by the IT department, and Form 16 TDS certificate for the last two financial years.

Self-Employed:

• Copy of challans for advance income tax payments.
• Copies of IT returns or assessment orders for the last three years.

Guarantor Documents (if Applicable)

• Personal Assets and Liabilities Statement.
• Two passport-sized photographs.
• Identity proof.
• Proof of residence.
• Proof of business.
• Signature verification from their current bank.