What is a Plot Loan EMI calculator?
SBI offers plot loans wherein the home buyer can buy a plot of land with the intent of building a house or purely for investment. Plot loans are offered to help with the purchase of a plot of land.
A plot loan calculator is a tool designed to simplify the complex process of estimating monthly loan repayments for land buyers.
The repayment of the loan is made each month in the form of plot loan EMI. Equated Monthly Instalment (EMI) includes the principal amount and the interest payable, divided throughout the loan tenure. Using this simple online EMI calculator, borrowers can instantly receive an estimate of their monthly plot loan EMI by inputting basic details like loan amount, interest rate, and tenure.
How is EMI on plot loan calculated?
The EMI plot loan calculation is on the same assumption as the other EMI plans. The EMI is designed in such a way that it contains a principal portion and an interest portion. In the initial years the interest portion is much higher while the share of interest in EMI keeps diminishing in later years. The inputs required are loan amount, tenure, and interest rate.
The following formula is used at the back end in such calculators.
The formula for calculating Home Loan EMI is:
EMI = [P x r x (1+r)n] / [(1+r)n - 1]
Where:
P = Principal loan amount
n = Loan tenure in months
r = Monthly interest rate (annual rate divided by 12)
As stated earlier, you only need to input the above 3 inputs and the EMI amount is given out by the SBI Plot Loan calculator.
How to use SBI Realty Plot loan EMI calculator
You have the option to enter the amount in figures, or you can simply drag across the slider bar to set the amount. That is your preference.
Here are the steps to use the calculator:
- Enter the amount of loan required by you.
- Enter the desired tenure of the loan.
- Enter the rate of interest. Check the ongoing rates in the market to keep to close to reality.
With this information, the calculator will show you the -
- Monthly EMI payable
- Total amount payable by you over the tenure of the loan
- The bifurcation between principal amount and interest amount.
Let us understand the usage with actual data in this case.
Assume that you want to buy a plot of value Rs. 50 lakhs, for which you are willing to offer own margin of Rs20 lakh and are seeking funding for Rs. 30 lakhs from the bank. That is perfectly acceptable to the bank. Assume that you input basic data like loan requirement of Rs. 30 lakhs, interest rate of 7.1% and tenure of 10 years. How does the output look like?
You get the complete status in a nutshell and in less than a second. The output will show you that your monthly EMI will be Rs. 34,987 for the above loan. In addition, the output of the calculator also shows you that on the principal borrowed of Rs. 30 lakhs, you will pay interest of Rs. 11.98 lakhs during the 10 year loan period.
This calculator for Plot Loan EMI also allows you to simulate different combinations to arrive at the best solution and also to compare across market offerings and pick the best offer.
What are the benefits of using a plot EMI calculator for a home loan?
Here are some of the key benefits of using the EMI plot loan calculator of SBI.
- It allows you to simulate various options and check the EMI amounts for various tenure and interest rate options.
- It allows you to decide on EMI affordability, whether you need to borrowing this much or bring in more equity from your side.
- The final picture enables you to understand how much of overall interest you pay as a percentage of the loan amount. It also tells you how much the loan will add to your eventual cost of the home and the cost of construction eventually.
- One major advantage is that it allows you compare across different loan providers to arrive at the best solution.
Most importantly, this is a good initial assessment before you get down to the actual plot loan process.
Does SBI offer plot loans and what are the advantages of going to SBI for the home loan plot purchase?
Yes, SBI does offer loans for plots up to a maximum tenure of 10 years. There are several advantages for borrowers by going to SBI for the plot loan.
The interest rates are very competitive, and also the processing fees and incidental charges are very low so as to keep the entire process economical.
There are no hidden charges and all charges are transparent when you take a plot loan from SBI. There is no penalty for prepayment; whether you prepay partially or fully after the cooling period. The interest is calculated using a daily reducing balance method, so you get the hidden benefits of the best deal in the market.
There are also special concessions for women borrowers.
How do I know if I am eligible for a plot loan from SBI?
The requirements to be eligible are quite basic for plot loans.
Firstly, you should be between 18 years and 65 years of age.
The maximum tenure you get is 10 years for the plot loan.
The borrower must be a resident Indian as plot loans are not available for other borrowers.
The income eligibility and the ability to pay the EMI must be there and that is a key factor in the eligibility.
It is preferrable that you maintain a good credit score to be easily eligible for such plot loans.
Also, the plot title papers and the link documents must be clean as funding will not be available unless the title deeds are totally clean.
What are the documents needed for plot loan borrowing by a salaried individual?
If you are a salaried person, getting a plot loan needs some basic documentation. Apart from the completed loan application, you also need to bring proof of identity, address, and income.
List of papers/documents:
- Employer Identity Card
- Completed loan application
- 3 Passport size photographs
- Proof of identity (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card)
- Proof of residence (photo copies of recent Telephone Bills/ Electricity Bills/Property tax receipts/ Passport/ Voters ID card)
- Proof of business address for non-salaried individuals
- Statement of Bank Account/ Pass Book for the last six months
- Signature identification from present bankers
- Personal Assets and Liabilities statement
- Original Salary Certificate from employer
- TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT Deptt.
What are the documents needed for plot loan borrowing by a professional or self-employed businessman?
It normally appears that getting a plot loan is very tough if you are not salaried. In fact, if you have the necessary documents and audit trail, then it is not tough getting plot loans from SBI even for professionals and entrepreneurs. Of course, the professionals also need to provide proof of residence and proof of identity like any borrower. However, since there is no regular income, there are other documents that the self-employed person has to offer for the loan. These include proof of business address, copies of GST returns, GST annual returns to evidence turnover, Annual income tax returns filed for the business, statement of personal assets and liabilities, challans of payments of advance tax etc. The more elaborate the documentation, the easier it is to get the loan processed.
If I can get a guarantor for the plot loan, what are the documents that the guarantor needs to bring for my loan processing?
Since the guarantor is taking on financial liability in the event of default by the main borrower, the bank insists on documentation by the guarantor also. The guarantor needs to offer a statement of assets and liabilities to the bank to evidence financial strength in such cases. Like the borrower, the guarantor also needs to furnish proof of identity and proof of residence with the necessary documents evidencing the same. In case the guarantor is salaried, then their salary slips are required and if the guarantor is self-employed then they need to submit all audited financial statements, apart from proof of business, and GST returns to evidence the turnover of the organization.
Can I use the plot loan to purchase a flat?
No, you cannot use plot loan to purchase a house, it can only be used to buy a plot of land. You can apply for a home loan if you wish to buy a house.
Are plot loans and land loans different?
No, plot loan and land loan are the same product. Some banks call it plot loan, some call it land loan.