SBI Home Loan For Construction

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A construction loan is a short-term loan used to finance the building or renovation of a home or other real estate project. Moreover, a construction loan is typically disbursed in stages as the project progresses.

Regarding construction loans, the SBI Plot and Construction Loan allows customers to purchase a plot to construct their dwelling units. This specialised loan facility supports the acquisition of land and the financing of house construction.

Customers must complete their respective projects within 3 years. House construction loan by SBI offers a maximum loan amount of up to Rs. 15 crores. Moreover, borrowers are provided with a comfortable repayment period of 10 years.

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Table of Content

1. SBI Home Loan For Construction Highlights

2. SBI Construction Loan Interest Rates

3. SBI Construction Loan Fees & Charges

4. SBI Construction Loan Eligibility Criteria for Salaried

5. SBI Construction Loan Eligibility Criteria for Self-Employed

6. SBI Construction Loan Documents Required for Salaried & Self-Employed

7. Features of SBI Construction Loans

Written By

Hepson Franklin

Hepson Franklin is a seasoned financial expert and accomplished writer specialising in Financial Services, Investments, Loan Assessments, Mutual Funds, Banking & loan products. With a wealth of experience in the financial industry, he has established himself as a trusted voice, providing invaluable insights and guidance to both seasoned investors and those new to the world of finance. With a comprehensive understanding of the intricate facets of the financial landscape, he is dedicated to demystifying complex financial concepts for readers of all backgrounds.

Reviewed By

Piyush Bothra

Chief Financial Officer, Square Yards

Piyush Bothra is the Chief Financial Officer at Square Yards, bringing over two decades of rich experience in finance and leadership. He is an MBA graduate from the prestigious IIM Lucknow and holds a BE in Information Technology from Sardar Vallabhbhai Patel Institute of Technology. He has played pivotal roles in scaling businesses and driving financial strategies. At Square Yards since 2015, Piyush is known for his strategic vision, strong financial knowledge, and valuable financial insights, significantly contributing to the company's growth and success.

SBI Home Loan For Construction – Highlights

House Construction Loan SBI
Loan Amount	Up to Rs.15 crores
SBI Home Construction Loan Interest Rate	Starts at 9.50%
Repayment Tenure	Up to 10 years

SBI Construction Loan Interest Rates

SBI house building loan interest rates are considered lucrative for the applying customers. Here is a basic snapshot of SBI home construction loan interest rates.

Loan Type	Interest Rate
SBI Construction/Plot Loan	Starting from 9.50%

SBI Construction Loan – Fees & Charges

With processing fees of 0.35%, where the minimum amount is INR 2000, one can expect a charge of up to INR 10,000. Other than that, there are other miscellaneous charges that applicants will have to pay. They are as discussed below:

Fees	Pre-Sanction	Post-Sanction
Advocate’s Services	Required for investigation and search report	–
Valuer’s Services	Necessary for valuation report	–
Stamp Duty Charges	–	Apply to the loan agreement
Insurance Charges	–	Borrower’s responsibility
Registration Fees	–	Covered by the borrower

SBI Construction Loan Eligibility Criteria for Salaried

Following are the eligibility criteria for SBI construction loans for salaried people.

Eligibility for the SBI Plot Loan requires the applicant to reside in India.
The age criteria stipulate that applicants must be at least 18 years old and not over 65 years old.
Additionally, the SBI plot loan offers a maximum loan tenure of 10 years.

SBI Construction Loan Eligibility Criteria for Self-Employed

The applicant, if a proprietor of a proprietorship firm, a partner in a partnership firm, or a director in a company, must ensure the following:

The business entity should have been operational for a minimum of three years.
It must have reported net profits in the last two years.
Any existing credit facilities should be regular and standard, with an opinion report from current bankers.
In cases where the proprietor and the proprietary firm jointly acquire the house property, the firm should either be an existing borrower of SBI or a debt-free entity.

SBI Construction Loan Documents Required for Salaried & Self-Employed

The table below showcases the documents required for SBI construction loans for both salaried and self-employed.

Documents	Requirements
Loan Application Form with Photos	Fully completed form with 3 passport-size photographs
Proof of Identity (Choose One)	PAN, Passport, Driver’s License, or Voter ID card
Proof of Residence/Address (Choose One)	Recent Telephone/Electricity/Water/Gas Bill or Passport/Driving License/Aadhar Card
Account Statements	Last 6 months’ bank account statements for all applicants; Last year’s loan account statement (if applicable) from other banks/lenders

Features of SBI Construction Loans

Following are the features of the SBI construction loan.

Low Interest Rates: The loans are offered at competitive interest rates, making them an attractive option for borrowers.
Low Processing Fee: The processing fees for these loans are kept low, reducing the overall cost of acquiring the loan.
No Hidden Charges: Transparency is ensured with no hidden costs involved in the loan process.
No Pre-Payment Penalty: Borrowers have the flexibility to prepay their loan without any penalty charges.
Repayment Tenure up to 10 Years: The loan offers a maximum repayment period of up to 10 years.
Interest Concession for Women Borrowers: Women borrowers can benefit from a concession on the interest rate, supporting affordability and empowerment.