Sbi Land Purchase Loans: What You Need To Know

State Bank of India (SBI) offers plot loans for land purchases under the brand name SBI Realty. SBI's plot loans are a great option for those who want to buy a house but can't currently afford it or want to buy a plot for investment purposes. SBI's plot loans offer loan amounts of up to Rs 15 crore and tenures of up to 10 years, with interest rates starting at 8.25% p.a.

Does SBI provide loans for land purchase?

SBI Plot Loan for land purchase

SBI Plot Loans are a great option for those looking to buy a house or invest in a plot of land. SBI offers plot loans under the brand name SBI Realty, with interest rates starting from 8.25% per annum. The maximum loan amount offered under this scheme is Rs. 15 crores, with a comfortable repayment period of up to 10 years.

The SBI Plot Loan is a land purchase loan scheme that allows customers to purchase a plot for constructing a dwelling unit. The construction of the house must be completed within 3 years from the date the loan is sanctioned. Additionally, customers can avail of another home loan for the construction of a house on the plot financed under the SBI Realty scheme.

The eligibility criteria for the SBI Plot Loan are similar to the SBI Home Loan eligibility criteria for other schemes. The bank may consider the loan applicant's credit profile, repayment capacity, loan amount, market value of the plot, and plot location when setting their LTV ratios. The documents required for the SBI Plot Loan are also similar to those needed for other SBI Home Loan schemes.

In the case of agricultural plot loans, the loan amount can be used for purchasing farm equipment, stamp duty and registration charges, the cost of land, and developing irrigation facilities, not exceeding 50% of the land cost. The gestation period for agricultural plot loans is 2 years for land to be developed and a maximum of 1 year for developed land. After this period, the loan can be repaid over a maximum of 9 to 10 years.

SBI also offers a special home loan scheme for government employees, providing interest charges on daily reducing balances and an interest concession for women.

SBI Realty Loan for plot purchase

SBI Plot Loans, or SBI Realty, is a land purchase loan scheme offered by the State Bank of India. The loan provides customers with the opportunity to purchase a plot of land for the construction of a dwelling unit. The construction of the house should be completed within 3 years of the loan being sanctioned. The maximum loan amount offered under this scheme is Rs. 15 crores, with a loan tenure of up to 10 years and interest rates starting at 8.25%.

The eligibility criteria for SBI Plot Loans are similar to the SBI Home Loan eligibility criteria for other schemes. The bank may consider the loan applicant's credit profile, repayment capacity, loan amount, market value of the plot, and plot location when setting the loan-to-value (LTV) ratio. However, SBI has not disclosed the LTV ratio for its plot loan scheme.

The documents required for an SBI Plot Loan are similar to those needed for an SBI Home Loan. These include residence proof, business address proof for non-salaried individuals, and bank account/passbook statements for the last six months. Additionally, TDS certificates, IT returns, and challans as evidence of advance income tax payments may be necessary.

It is worth noting that SBI also offers extension loans for the construction of houses on plots financed under the SBI Realty scheme. Furthermore, SBI provides a special home loan scheme for government employees, known as SBI Privilege, with interest charges on daily reducing balances and an interest concession for women.

Interest rates and eligibility

SBI offers plot loans for land purchases under the brand name SBI Realty. The interest rates for these loans start at 8.25% per annum. The bank also offers an interest concession for women applicants. The maximum loan amount offered under this scheme is Rs. 15 crores, and the tenure of the loan can be up to 10 years.

To be eligible for an SBI plot loan, applicants must meet certain criteria, including providing the required documents and having a strong credit profile, repayment capacity, and loan amount. The location of the plot, whether within or outside city limits, is also considered. The eligibility criteria for SBI plot loans are similar to the SBI Home Loan eligibility criteria for other schemes.

The required documents for an SBI plot loan are similar to those needed for an SBI home loan. These include residence proof, such as recent utility bills, a passport, property tax receipt, or Voter ID card, and bank account statements for the last six months. For non-salaried individuals, business address proof is also required. Additionally, income tax-related documents, such as TDS certificates or copies of IT returns, may be necessary.

It is worth noting that SBI also offers a special home loan scheme for government employees called SBI Privilege, with interest rates starting at 8.50%. This scheme provides interest charges on daily reducing balances and offers an interest concession for women applicants. The loan-to-value ratio can be up to 90%, and the tenure of the loan can range from 5 to 30 years.

Documents required

SBI provides plot loans for the purchase of land for construction. The bank also offers extension loans for the construction of houses. The maximum loan amount offered by SBI is Rs.15 crore, with a maximum tenure of 10 years.

• Copy of IT returns for the last two financial years acknowledged by the IT department/TDS certificate on Form 16.
• Copies of IT returns or assessment orders for the last three years.
• A completed and signed home loan application form.
• A good credit score can help secure lower interest rates.

For agricultural plot loans, the loan amount can be used for the purchase of farm equipment, stamp duty and registration charges, the cost of land, and the development of irrigation facilities and land development (not exceeding 50% of the land cost). The gestation period for such loans is 2 years for land to be developed and 1 year for developed land.

SBI Home Loans

SBI also offers extension loans for the construction of houses on plots financed under the SBI Realty scheme. Additionally, SBI provides a Combo Home Loan for plot purchase and construction, allowing customers to avail of a single loan for both the purchase of land and the construction of their home.

The eligibility criteria for SBI Plot Loans are similar to the SBI Home Loan eligibility criteria for other schemes. The required documents for a plot loan from SBI are also similar to those required for other SBI Home Loan schemes, including residence proof, bank account statements, and income tax-related documents.

SBI offers special home loan schemes for government employees, providing interest charges on daily reducing balances and concessions for women. SBI home loans are available for both salaried and self-employed individuals, with special rates offered for women customers. The loan-to-value ratio can be up to 90%, and the tenure of the loan can range from 5 to 30 years.

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