SBI Rural Housing Bank Loan - SBI Gram Niwas and SBI Sahayog Niwas

Although State Bank Of India (SBI) has implemented a rural housing scheme (Golden Jubilee Rural Housing Finance Scheme of RBI (GJRHFS)) under personal segment, bank has not been able to comprehensively cater to the needs of the farming community and poorest of the poor for Home Loans in view of the peculiarity of the ownership title in rural areas, social habits, type of construction and other related needs not being fully covered under GJRHFS.

For example, dwelling cum work area or shed for the cow etc. Considering the huge potential for Home Loans in rural areas, two schemes viz, "Gram Niwas" and "Sahayog Niwas" are launched.

Gram Niwas - Home Loans to Farming and Poorest of the poor in Rural areas

SBI Rural Housing Loan - SBI Gram Niwas and SBI Sahayog Niwas

Objective of SBI Gram Niwas: To provide Home Loans to Farming and Poorest of the poor in Rural areas.

Product Highlights

  • The product is designed to comprehensively cater to the housing requirements of farming and other rural community.
  • Classification as Priority Sector Advances
  • No processing fee
  • Concession in interest rate
  • Group Life Insurance Cover from SBI Life: protects the borrower’s family in the event of untimely demise of the borrower. The amount payable towards upfront premium is considered as part of the project cost.
  • Free Personal Accident Insurance Cover
  • Can be combined with other variants of Home loans like SBI-Freedom.
  • Loans given in terms of NABARD’s Model Sanitation Scheme are designed to effectively address the requirements for better sanitation facilities in rural areas and also to discharge our Corporate Social Responsibility to the rural community.


Purpose of SBI Gram Niwas Home Loan

  • Purchase or construction of a house, including the cost of construction of work shed for pursuing income generating activities viz. dairy shed, tailoring shop, grocery store, work shed for village artisans etc.
  • Renovation or repair of existing house / shed which is not more than 15 years old in case of RCC / Tiled Roof (with steel / wooden beams) and 5 years for other types of construction.
  • Purchase of a plot of land for the purpose of house construction.
  • Extension of existing house / work space.
  • Extension of existing house to construct twin-structure of toilet and bathing room, costing about Rs. 8600/- (in terms NABARD Model Scheme for provision of sanitation Refinance to be claimed from NABARD under the Rural Housing Scheme with Automatic Refinance Facility.)

If the plots owned are in different places in the same village, two separate loans for construction of house and work shed may be extended.

Operational Area of SBI Gram Niwas Home Loan

The Scheme will cover all rural and semi-urban centres. "Rural Area" for the purpose of the Scheme is the area comprised in any village including the area comprised in any town, the population of which does not exceed 50000 as per 2001 census. Location of the residential property being funded by SBI should be within the "Rural Area" as defined above.

Eligibility for SBI Gram Niwas Home Loan

All Individuals (farmers, entrepreneurs, traders, businessmen, employees etc.) having satisfactorily conducted account with SBI or a member of a Self Help Group having savings / loan accounts with SBI.

Loan amount of SBI Gram Niwas Home Loan

The permissible loan amount will be decided by the repayment capacity defined as under:

Average Annual IncomeMaximum permissible
Instalment to Income Ratio
Upto Rs.40,00025%
Above Rs.40,000 and upto Rs.2 Lac45%
Above Rs.2 Lac and upto Rs.5 Lac55%
Above Rs.5 Lac60%

(Average of last two years’ income will be considered for computation of the income eligibility). Regular income from all sources could be considered to arrive at the eligible loan amount, provided the sanctioning authority is satisfied about the same.

The loan amount will be limited to the Cost of the Project less margin money to be contributed by the applicant or the upper ceiling fixed for the activity.

Income of the spouse can be considered for computing the loan amount (i) where the property is jointly held with the spouse and the spouse is a co-borrower or (ii) the property is held in single name and the spouse stands as a guarantor.

Maximum Loan amount of SBI Gram Niwas Home Loan

For construction/purchase of house: Rs.5.00 lacs For repairs/renovation: Rs.2.00 lacs For purchase of land: Rs.1.00 lac

Age criteria for SBI Gram Niwas Home Loan

18 years to 50 years. Applicants above 50 years may be considered for sanction of loan with all the legal heirs joining as guarantors.

Assessment of Loan requirements for SBI Gram Niwas

For loans upto Rs.0.50 lacs, branches may take a decision based on a simple estimate prepared by the applicant, keeping in view the type of construction and the market rates for building materials / labour costs prevailing in the area.

In respect of Home Loans above Rs.0.50 lacs, Circles will fix the specifications, depending upon the prevalent local practices, for two / three categories of houses (e.g. concrete wall & roof / concrete wall & asbestos roof / semi pucca construction with asbestos / tiled roof etc.), in consultation with an empanelled architect and the costs per square foot so fixed will be vetted by the Civil Engineer at LHO.

The unit costs for the different categories so arrived at will be adopted for deciding the eligible loan amount in respect of Home Loans under the Scheme in the Circle. The rates may be reviewed once in three years and revised considering the impact of inflation on cost of building materials / labour costs.

Margin for SBI Gram Niwas Home Loan

Loan amount upto Rs.50,000 - 10% of the project cost.

Loan amount above Rs.50,000 and upto Rs.5.00 Lac - 15%

Loan amount above Rs.5 Lac - 20%

Processing charges of SBI Gram Niwas Home Loan

It has been waived. However Advocate's fee not exceeding Rs. 500/- should be recovered from the borrower for scrutiny of title deeds by Bank's empaneled Advocate.

Security for SBI Gram Niwas Home Loan

1. Primary: Equitable / Registered Mortgage of the house / plot. or Any other tangible security including agricultural land to cover 100% of loan amount (Considering the expenses involved for creation of registered mortgage, normally mortgage by deposit of title deeds should be obtained. However, registered mortgage over the property may be obtained in all cases where it is considered necessary by the sanctioning authority and also where title deeds do not exist.) Mortgage may be waived for loans upto Rs. 50,000/- by obtaining a collateral security.

2. Collateral: As bank cannot proceed against agricultural land under the provisions of SARFAESI Act and as a 'farm house', being exempt under Sec.60 of CPC, cannot be sold in execution if bank file a civil suit, the branches may explore the possibility of obtaining collateral security covering the loan amount, wherever available.

Repayment of SBI Gram Niwas Housing Loan

Home Loans under the Scheme should be repaid over a period of not more than 15 years in equated monthly / quarterly / half yearly / yearly installments (including a maximum moratorium period of 18 months from the disbursement of the first installment of the loan or 2 months after completion of construction of the house whichever is earlier).

The period of repayment and the installments fixed for repayment should be decided upon the merits of each case, on a realistic basis, coinciding with the harvest of the crop at half yearly / yearly intervals or coinciding with the generation of income from ancillary agricultural activities pursued by the borrower eg. dairy / poultry etc. or in monthly / quarterly installments in case of other regular sources of income. The repayment could be made by post dated cheques or by executing standing instructions.

Rate of interest for SBI Gram Niwas Housing Loan

As offered under GJRHFS, a concession of 0.10% below the applicable card rate on the date of sanction. Latest instructions in this regard should be ascertained from Home Loan interest rate circulars.

Facility of SBI Gram Niwas Home loan

TL or OD as in SBI Maxgain in case of eligible customers with ATM-cum-Debit card facility.

Insurance for SBI Gram Niwas Housing Loan

The land and building should be insured at all times against fire, flood, cyclone, typhoon, lightning, explosion, riot, earthquake risks etc. for the full market value or 10% above the limit whichever is higher, at the cost of the borrower.

Disbursements of SBI Gram Niwas Home Loan

To safeguard the Bank's interest and to prevent misuse of funds, disbursements should be made only in phases and should correspond with the actual progress made in construction eg. at stages like completion of foundation, lintel level, roof level and final completion as follows:

1. For completion till foundation level: 15%

2. For completion of lintel level: 20%

3. For completion of roof level: 35%

4. For final completion: 30%

The disbursement plan should be drawn up by the branches and should be made after the branch is fully satisfied about the proper end use of funds through site inspection.

Group Life Insurance Cover from SBI Life

As the coverage under group life insurance protects the borrower's family in the event of untimely demise of the borrower, the Scheme should be marketed to the applicants. The amount payable towards upfront premium will be considered as a part of the project cost.

Personal Accident Insurance Cover

The personal accident insurance cover will be available to all Home Loans extended under the Scheme, at Bank's cost.

Other Terms and Conditions

  • Approval/Permit for construction issued by the local Village Panchayat, Gram Panchayat, Municipality should be obtained along with a copy of the approved plan, if any.
  • The title deeds, land tax paid receipt, non encumbrance certificate and possession certificate should be scrutinized by the Bank's Advocate who should also obtain a search report to establish clear, absolute, and marketable title of the borrower.

There are 71 Comments

Stanly Chirayath's picture

Most of the banks provide housing loan for ready-to-occupy houses like flat, villa, etc. Contact your favourite bank for having a detailed discussion.

I recommend SBI, but your effort to get approved the loan be a cumbersome task. Since you are a Govt. Employee they won't ask you many things and may get approved without hassles.

Good luck!

as i duraiyarasan please help how to applysbi gramniwas housing loan


i'm govt. servant and i want home loan i'm living in village and property is on my mother name can i get loan? i applied in bank but they rejected my application they said my property is in red line and we are not considering panchyat sign but this village comes in U.T so can i get home loan?

I am private company employee. Property is there in my mother name in village. Can I get home loan? If I get home loan what are the documents required.

I want a gramin niwas farm house loan I am Central govtment employ my require farm house loan 35 lacs and my annual income 9 lakh to 10 lakh and my other sources annual 4 lacs to 7 lacs so please help me my contact number 85 100 4 1110 and my mail address nareshgoliya 5441 @

as i above said i'm govt. servant .i'm a force person i went to sbi branch again they said we are not proceeding the loan in village we are only providing this facility in city my salary account is in the bank and i'm running from last 2-3 months for the loan and as a force member i hardly get time and this is now harassment and i'm tied with it because bank is not providing me the facility i have all the documents my salary slip ,form no 16 ,my property papers, pan card, voter card .the only problem is my property comes in red line please tell is it my mistake .can i get loan on this or not and what should i do regarding this.

Stanly Chirayath's picture

Bank won't approve any kind of loan if the collateral property comes under red-lined area. In this case, as far as bank is concerned the property doesn't have any transactional values. You have to attach the property having transactional value at least 40% above the loan amount.

i am force peson my gross salary Rs.25000 i want 10 lac home loan,iam ready thee month salary slip, service certificate, form 16 two years, id proof,blue print and panchayat aproval than what to do

Stanly Chirayath's picture

The amount, in your case 10 lakhs, depends many factors such as net earning, age, remaining service period and value of property. Most of the nationalized banks have special schemes for defence personnels in which little-bit liberal than other sector's employees. The documentation you obtained are relevant yet banks may ask something different or more like salary certificate etc. You contact your nearest SBI branch to have a discussion with manager.

The complete list of documents required for SBI Housing loan can be found here. Some items are relevant to respected categories. Hence bank manager will guide you what are the relevant documents to be submitted by you.

R/s i have plot in village but outer redline. Its registered but i have got ashtam written declaration from the owner. Can i consider as beneficial for the gram niwas yojna. I am salaried employee.

Stanly Chirayath's picture

Hello DP Singh,

Since your property comes away from redline, collateral can be accepted subject to its clarity. From your comment, I presume the property ownership is still with someone else but a declaration has been given to your name as to you can use the property. I don't think that bank will accept this. On the other hand, if you are a salaried employee with either Govt. sector or good private company, bank will consider your repayment capacity first then the collateral. Better you approach a SBI branch close to you and explain the matters.

Hello Sir, I am salaried employee in private IT company. I want to apply for sbi home loan to complete on going construction of my home in village. My net annual income is 4.2 Lac. is it possible for me to apply for sbi home loan?

Stanly Chirayath's picture

Loan eligibilty depends factors like repayment capacity, clarity of property documents, valuation of property you pledge as security, age, spouse's employment status, employment history & track record etc.

Please visit your nearest SBI branch and discuss your requirement with branch manager. I hope you will get home loan without difficulties.

We are purchasing 19 guntas of agricultural land near bannur. Can I get loan from bank to build a farm house.

I have already started to construct home at my native in Haveri District,the revenue site is attached to village and land Khata is in the name of my son. Its already built lintel level, now i need some money to complete the house immediately,

In this regard shall I get home loan from SBI/SBM since i have an account with SBM, I need approximately 6 lacs to complete the house. I am a salaried person i can give monthly deduction from my salary.
Please let me know what are the documents i have to produce and how many days it will take to sanction the loan.


Stanly Chirayath's picture

Since you are a salaried person, you will definitely get home loan from any nationalized bank. Contact your nearest bank branch for more details about what exact documentation is required and what will be the EMI etc. Visit following pages for general idea about home loan requirements and documents:

  1. SBI Housing Loan and Documents Required
  2. Necessary Documents required for SBI Home Loan
  3. SBI Home Loan FAQ


can i apply rural housing loan for construction on plot, i salarise person and my income is 3.3 per annum ?????
How many loan will be given if loan can be took place ?

Stanly Chirayath's picture

Salaried person having completed enough tenure can apply for housing loan. Loan amount, tenure, emi etc depends your salary, net earnings, property details and the like. You may contact your nearest bank manager for complete details.

Hello Sir,

As we had a place at our village,my father wants to construct a house in that place.As he is a former,he will get 30000 income annually.Can we have house loan in either under Gram Niwas scheme or Sahayog Niwas? if we can please suggest us which one is preferable for us?

Stanly Chirayath's picture

Gram Niwas scheme is entitled for low income personnels. If your father's income is below Rs. 50,000/-, it is advisable to apply for the same. Since the Sahayog Niwas designed to SHG, you can't apply for it.

Thank you so much for your quickly response.As you are advising us to prefer Gram Niwas scheme is there any hidden charges applicable to this scheme?

Stanly Chirayath's picture

As of now, SBI doesn't have any hidden charges for any of their loan products like home loan, car loan, business loan etc. It is my personal perspective SBI is the only bank in India doesn't impose hidden charges to the loan customers.

Visit one of the nearest SBI Branch for more details.

Thans a lot for your kindly information please give clarification on my father is going to open the account today in SBI.He doesn't have SBI account so far he has only Union bank account can we apply it with fresh account.

I could not get exact information on rate of interest for SBI Gram Niwas Housing Loan.I came to know that they are giving concession as 0.10% on rate of interest? can you please help in this?

sir, i am working in private sector, i want to renew my home in rural areas and some new construction is there. i don't have as much money to do it is it possible to get me lone from SBI. Which documents are needed.

I am a 24 year old salaried employee , and my father is a karnataka state govt servant . We own certain piece of land and is being cultivated . Currently I am in a plan to construct the house in the same land .

Can you please suggest me the best possible and hassle free loan scheme..?

I am a woman of 29. started a retail shop in my village 2 years ago. I have a piece of land worth 12 lacs in the same village. I need a roof over my head. I have IT for 2 years since starting my business. Can I get 5 lacs loan from sbi Gram Niwas?

Stanly Chirayath's picture

Your valuation Rs. 12 lakhs may not be accepted by bank. If its true and accepted by bank, you may get Rs. 5 lakhs no doubt, subject to all other terms to the scheme. Contact your nearest Branch.

I feel honoured to have this forum to interact with you .I would like to know whether it is mandatory to have plot searched by panel advocate of SBI FOR HOUSE LOAN UNDER CM HOUSING FOR AN AMOUNT 100000/-where plot is patta signed by Tehsildar . if search is mandatory then what is the amount fixed by SBI for their panel advocates in state of MP

Hello Sir,

I want Home Loan, but the land where i want to build home is not in NA plot.
Can i get Home loan?

Please Suggest.

Hello Sir, I am salaried(permanent) employee in public ltd company. I want to apply for sbi home loan to construction of my home in village. My net annual income is 3.6 Lac.

As we had a place at our village, my father wants to construct a house in that place.he is a farmer, he will get 50000 income annually. Can we have house loan in either under Gram Niwas scheme or Sahayog Niwas? if we can please suggest us which one is preferable for us? My local branch SBIN0012397 not interested for home lone due to private job. please suggestion. Required lone amount 5lac.

Dear Sir,
I am a 21 year old salaried employee , Currently Working in pune , Salary is 25000 thousand Per month , I am interested to purchase land for home Construction May I get Loan from SBI

Hello Currently i'm working in Bangalore in software company and my annual income is 4lakh pa,
my home town is located kolar dist , which is grama panchayith , currently I don't have bank accont with SBI \SBM , if I open the account can I get the home loan for for my property which is located in village.

please advise....


I'm looking for home loan from SBI, i'm working in Bangalore MNC company and I have a plan of construction of house in my home town which come under grama panchayith , is there any possibility of getting the home loan for me,

please advise.


I'm looking for home loan in rural area and it's comes under grama panchayith, I hered that land should be under DC conversion,

Really it's required plz advise .