For the construction of residential premise, PNB Housing provides loan for purchase of residential plot in an urban area.

Advantages of taking Home Loan from PNB Housing
  • Provides an extensive range of home loan products like Home Purchase Loans, Home Construction Loans, Home Extension Loans, Home Improvement Loans and Plot Loans.
  • Pan India branch network
  • Robust service delivery model – door step services ensuring easy and fast approval & disbursal of loans
  • Excellent post disbursement services
  • Facility of enhancement in loan amount in the event of escalations in cost
  • Dedicated team of well-experienced employees who work on best-in-class information systems & network to deliver and provide customer satisfaction
  • High standards of ethics, integrity and transparency
  • Various repayment options

State Bank of India (SBI) Land Loans

One of the financial instruments that banks provide are land loan or plot loan. It is a loan provided by banks like SBI to borrowers for the purchase of a plot of land.

Land has always been a way for people to invest in India and land loans provided by SBI or the State Bank of India for the purpose buying a land.

Key Features of Land Loan

  • Low Interest Rates – Provide a competitive interest rate that is the lowest in the industry
  • Low Processing Fee – Don’t lose out on your loan amount in the form of processing fee
  • No Pre-Payment Penalty – You can complete the loan whenever you want without any penalty
  • No Hidden Charges – All the charges will be communicated upfront hence no hidden charges
  • Interest charges on Daily Reducing Balance – Continuous reduction in interest paid
  • Repayment up to 10 years
  • Interest Concession for Women Borrowers.

Different Types of Land Loans

Land Loans can be undertaken by individuals for the following reasons

  • Purchasing of plot directly from a real estate development authority or housing society
  • Purchasing of plot through resale directly from lender or through agents

Pre-requisites for Land Loans

  • The land or plot of your choice must be purchased strictly for non-agricultural purposes
  • The land should be approved by the local authorities and must have relevant documents during the time of purchase

How is Land Loan different from Home Loan?

This is a common query that is raised when discussing about land loans and plot loans, at first sight they do seem to meet the same purpose, but they are quite different as we shall see

Difference 1: A home loan is provided for a property that is built, under construction and or undergoing restoration and extension, while a land loan is predominantly given for purchase of a piece of land or plot

Difference 2: The Loan to Value ratio for a home loan is about 80%, for loans above 3 lakhs the LTV is 90%; while the LTV for a plot is 50-70%

Difference 3: The tax benefits which are available on a home loan are not available on the land and plot loans

Difference 4: Home loans tend to be longer up to 30 years even, while the land plot loans are extended up to 15 years

Difference 5: Another factor that is considered while taking up a land loan is the presence of 2-5% of foreclosure charges that are absent in a home loan. These are the primary differences between a home loan and a land loan.

Credit Score and Land Loan

For any loan applicant, a credit score is an important facet that is considered by banks and other lenders when they are about to make lending decisions for any loan including your land loan. It is the onus of the applicant to maintain a good credit health especially for those who are looking to take big ticket and medium to long term loans, the presence of a poor credit score or no credit score could lead to unwanted situations such as unfavourable terms or sometimes even rejection.

To avoid loan rejection, learn more about your credit health, start with your free credit score.

SBI Land Loan Features

State Bank of India provides land loans for the purchase of land to build your dream home for both salaried/self-employed people. After the purchase of land, the person must begin construction of their home within 5 years from the date of land loan disbursement.

Eligibility Criteria

The following are the eligibility criteria for State Bank of India land loans

Age The minimum age requirement is 18 years while the maximum age at the time of loan completion is 70 years
Loan Tenure The maximum loan tenure is 10 years
Loan Amount The maximum loan amount is Rs.15 crores
Pre-Payment Charges Nil
Nationality Indian

State Bank of India Land Loan Charges

Processing Fee

0.35% of the loan amount where minimum: Rs. 2,000 and maximum: Rs. 10,000


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


  • Stamp duty payable for Loan agreement & mortgage
  • Property insurance premium
  • CERSAI Registration Fee of Rs 50 + GST up to Rs 5 Lakh limit; and Rs 100 + GST for limits above Rs 5 Lakh

State Bank of India Land Loan Interest Rate

Category Loan Amount Salaried Self-Employed
Women Up to Rs.75 lakhs 8.95% p.a 9.15% p.a
other 9.00% p.a 9.20% p.a
women Above Rs.75 lakhs 9.00% p.a 9.20% p.a
Others 9.05% p.a 9.25% p.a

State Bank of India Land Loan Documents required

List of papers/ documents applicable to all applicants:

    • Employer Identity Card
    • Completed loan application
    • 3 Passport size photographs
    • Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/Receipt of Property tax/ Passport/ Voters ID)
    • Proof of business address for non-salaried individuals
    • Proof of identify (photo copies of Voters ID card/ Passport/ Driving license/ IT PAN card)
    • Signature identification from present bankers
    • Statement of Bank Account/ Pass Book for last six months
    • Personal Assets and Liabilities statement

For guarantor (wherever applicable):

    • Personal Assets and Liabilities Statement
    • 2 passport size photographs
    • Proof of residence as above
    • Proof of identification as above
    • Signature identification from his/her present bankers
    • Proof of business address as above

Additional documents required for salaried persons:

1. Provide original Salary Certificate from employer

2. Tax Deducted at Source (TDS) certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT Dept.

Additional documents required for Professionals/self- employed/ other IT assesses:

  • Provide acknowledged copies of three years Income Tax returns or Assessment Orders.
  • Provide photocopies of challans as proof for payment of Advance Income Tax

Advantages of Taking A Land or Plot Loan

  • Land as a resource is limited and thus making it a worthwhile investment which gives better returns on a resale.
  • Plots can be considered as affordable comparative for individuals
  • As an investment purchasing a piece of land has little or no waiting time
  • Gives the buyer the freedom and flexibility to start building their own house according to their specifications

While there are many advantages, there are also some disadvantages of that need to be taken into account by buyers, this include lack of tax benefits and lower LTV which we will get to in detail shortly.

Land Loan EMI Calculator

Customers can use the home loan EMI calculator to know how much EMI they will be paying each month. Customer can make use of the CreditMantri Home Loan EMI calculator and the lender Home Loan EMI calculator.

The importance of this is that customers will know how much EMI they will have to pay based on their loan requirement. This helps them to plan far ahead.

CreditMantri’ s Home Loan EMI Calculator and lender Home Loan Calculator are among the best and probably the easiest ways to compare various home loan offers and choose the loan best suited to your requirements. Using the Home Loan EMI Calculator, you get a simple and quick way to accurately compare the various loans and determine what your EMI will be with the different lenders.

State Bank of India Land Loan FAQs

1. How can I apply for a land loan from State Bank of India?

SBI provides customers multiple ways to apply for a land loan. It can be from anywhere using the online and customer care facilities or visit the nearest branch to talk to a representative to discuss the options and then apply. Customers can choose any one of the option they are comfortable with.

2. How long will it take for SBI land loan approval?

It will take at least 1 week for the bank to do their due diligence and verify all the documents.

3. What is the maximum loan amount I can get from SBI Land Loans?

The maximum loan amount from State Bank of India land loans is Rs.15 crores.

4. Are there any concessions on interest from SBI Land Loans?

There is concession in the interest rate for women on the interest rate of SBI land loans

5. What is the processing fee for SBI land loans?

The processing fee is 0.35% of the loan amount starting from Rs. 2,000 to maximum of Rs. 10,000

About State Bank of India

The State Bank of India founded in 1806 is one of the oldest commercial banks in Asia. It is a major banking and financial services public sector company with more than 24,000 branches and 59,000 ATMs. It is the largest bank in India which has a 20% market share in deposits and loans among commercial banks, truly being a bank for every Indian.