SBI Home Loan For Construction

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.

SBI Home Loan For Construction – Highlights

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.

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:

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.

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​​.