|SBI Plot Loan 2020|
|Loan Tenure||Up to 10 years|
|Loan Amount||Up to Rs.15 crores|
State Bank of India (SBI) offers land loans along with other financial products. The SBI Plot Loan fulfills the needs for the purchase of land for commercial or residential purposes by an applicant. SBI plot loan interest rates range is from 8.65% p.a. to 8.85% p.a.
Types of SBI Land Loans
The SBI Plot Loan is technically two different products. They have been devised keeping in mind people who wish to buy land for the construction of a house or for agriculture. The loan intended for construction of a house is SBI Realty Loan while the loan given to farmers to purchase agricultural land is a Land Purchase Scheme under their Rural and Agricultural banking portfolio.
A land is an expensive commodity and first-time buyers will find it difficult to arrange the required amount that is needed for such a purchase. This is where SBI Plot Loans come in. The bank offers loans at affordable interest rates that can be paid back over a period of time in easy installments. The maximum amount that can be borrowed for a plot intended for construction of a house is Rs. 10 crores. In the agricultural banking scenario, the bank may grant loans up to 85% of the total market value of the property as a loan.
These loans can be availed not only for purchasing land but for some other extended purposes as well. For instance, a borrower may buy a piece of land but does not have the required amount for constructing a house. Or they are already constructing a home and the expenses have exceeded expectations. This becomes a difficult position for the borrower. SBI can grant the borrower an extended loan so that they can complete their construction. Similarly, a farmer can get an extended loan for development-related expenditure such as irrigation systems. Both of these two loans can be taken out simultaneously on the same plot of land.
SBI Plot Loans have been divided into two categories:
- Agricultural Land Purchase Scheme: India is primarily an agrarian country. A large portion of the nation’s workforce is directly or indirectly involved in agricultural and labour-oriented occupations. Therefore, it becomes imperative for the system to support their activities. Bank offer loans to farmers and landless laborers for such needs. This gives farmers an opportunity to buy land for agricultural purposes. This loan can further be extended to include the development of land that prepares it for cultivation and agriculture. An important point to note is that this loan category only applies to agricultural needs and not for any other purpose. This is why such loans carry a moratorium which is 2 years for underdeveloped land and 1 year in the case of a developed plot of land. After that, the loan has to be paid back over a period of 9-10 years.
- SBI Realty Loan: Purchasing a home or constructing one is a major financial burden. SBI home loans can cover a major portion of the cost. The SBI Plot Loan is a more special case where the loan is given for the purchase of land meant for construction of a house. The loan can also be extended to cover the expenses of the construction process. This makes it easier for the borrower to complete building their home without much hassle. This loan amount has to be paid back through monthly installments over a set period of time.
SBI Plot Loan Benefits
SBI plot loans have been initiated to empower people so that they can purchase their own home or land. These loans offer many benefits. Some of them are listed here.
Large Loan Amount
Under the home and plot loan schemes, a borrower may take out a loan of up to Rs. 10 crores. Under the agricultural loan scheme, the loan offered is up to 85% of the plot’s market value.
Extended Tenure for Easy Repayment
The loan term can be up to 15 years for Plot Loans meant for constructing a residence. For agricultural Plot Loans, the borrower can repay the loan in a period of 9-10 years with half-yearly installments. Further, agricultural loans have a moratorium or gestation period where the farmer gets the opportunity to develop the land and start earning a stable income before he needs to make repayments.
Extension of Loan
The loan amount can be extended for other related needs. In the home Plot Loan scheme, apart from taking a loan for the land, the borrower can seek a further extension of loan for the construction of a house. The home construction loan takes the plot loan amount into consideration. The extension essentially pays off the plot loan and the remainder is disbursed in stages that are linked to the progress of construction. In the agricultural banking scheme, the borrower can take out a further loan for agricultural infrastructures like irrigation, mechanization, and related development needs.
SBI Plot Loans Eligibility Criteria
Eligibility for Agricultural Banking Loans
- Small farmers and landless laborers can apply.
- The farmers who already own agricultural land should have less than 2.5 acres of irrigated land or less than 5 acres of non-irrigated land to qualify.
- The borrower must have a good record of repaying loans for a period of at least 2 years.
- Borrowers who have a good credit relationship with other banks must make sure that they do not have outstanding payments or need to transfer their outstanding amount.
Eligibility for Residential Plot Loans
- The borrower must be an Indian national.
- The construction process should begin within five years from the date on which the loan was sanctioned.
Documents Required for SBI Plot Loan
To avail an SBI Plot Loan, all the necessary documents need to be submitted.
- Identification proof: Identity proof documents such as a driver’s license or Aadhar card is required to be submitted along with a proof of residence. This is standard procedure meant to authenticate the applicant’s information.
- Income proof: This is to show that the individual has a source of stable income. The applicant must submit their salary slip. This is to show that the individual is currently employed and has the means to repay the loan. Also, the tax returns of the previous 2 years have to be given. This is to show that the applicant has no outstanding payments or is not a tax defaulter. These terms are relaxed for agricultural land loans but other validating documents are also required.
It is also important to go through the offer document carefully. The offer documents contain all the terms and conditions along with various details that need to be cross-checked so that the repayments can be planned in a timely manner. Financial matters are way too important to be left to chance. Therefore, it is advisable to consult an accountant or a financial adviser.
Check Other SBI Home Loans
SBI Home Loan interest rate (w.e.f. 10.05.2019) is 8.55% onwards. To know the interest rate of other SBI Home Loan Schemes, read below:
|SBI Home Loan Schemes||Interest Rate (in % p.a)|
|SBI Regular Home Loan||8.55% onwards|
|SBI NRI Home Loan||Varies from case to case|
|SBI Flexipay Home Loan||Varies from case to case|
|SBI Privilege Home Loan||Varies from case to case|
|SBI Shaurya Home Loan||Varies from case to case|
|SBI Realty Home Loan||9.15% onwards|
|SBI Home Top Up Loan||8.90% onwards|
|SBI Bridge Home Loan||10.90% onwards|
|SBI Smart Home Top Up Loan||9.45% onwards|
|Insta Home Top Up Loan||9.45% onwards|
|SBI Corporate Home Loan||Varies from case to case|
|SBI Home Loan to Non-Salaried||Varies from case to case|
|SBI Tribal Plus||8.65% onwards|
|SBI Earnest Money Deposit (EMD)||11.85% onwards|
|SBI Commercial Real Estate (CRE) Home Loan||9.05% onwards|