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

I am a govt employee .I want to avail a sbi tribal housing loan of Rs 400000 four lac only for repair and rennovation of house we are staying .The house is in my fathers name and i am the only son.My father has retired from his service and getting a pension of rs4000 four thousand per month.I had approached to the SBI branch for the loan they have rejected my loan by saying that the property should be in my name to get the housing loan,is there any way to get the loan.or WHAT SHOULD I DO?

Dear Sir,
One of my friend has jewelry shop in my village (Jajpur,Odisha). He want to have a loan of around 1 lac to start his own jewelry shop. I want to know if there is any scheme to avail any kind of loan. O he needs one guarantor to avail loan.


Hello Sir,

I am salaried employee in private sector of 5lac/year in Maharastra. property is in Karnataka & it is in my father Name. We together want to build house in my village. My father is farmer & has land of 4acre.

Could you please tell will i get Housing loan on my salary because property is in my father name ? If yes please explain.

Stanly Chirayath's picture

You can apply for it. Your father has to become the guarantor / Co-applicant.

If the collateral is same as your house is going to be constructed, you can apply for other home loan schemes also.

The final eligibility depends on clarity of other documents such as title deed, your net income etc.

Respected sir,
we live in a small village..lakshmipuram, nathavaram mandal, near narsipatnam.. andhra pradesh. we have a half built house without roof.. it was funded by the government four years back.. till now the funds didnt release to complete the house .. we plan to complete it through SBI rural finance scheme as my father is a farmer .. please let me know the requirements.. the average income is around eighty thousand per annum. to whom we have to contact sir ... humble request sir ..


My plot is located in rural area what i hv to do for applying home loan,what r the formalities​ , i am govt servant annual income 3.

Plz reply

I am a private sector employee and earning salary 41k per month. Am I eligible for a home loan in gram panchayat area?

Stanly Chirayath's picture

Have you completed two years in the present company? If you can produce ITR / Form 16 for last 3 years, SBI and other nationalized banks will give you home loan, subject to other terms. Meet branch manager for more detailed discussions.

Hi sir, My father is retired govt employee. We own a 6acres land in village. We need loan of 5 lac to build a house. can we take it on basis of our land? If yes please tell me the bank name. I am planning to give application to state bank of india for the same. Please reply

Dear Sir,
i am living in village and my property is under Red Line. i am having Ashtams of property and my property value is 200000 can i apply for Gram Niwas loan or any type of loan so i can construct my house.





Hi I am working in a BPO, wanted to apply for home loan, the property comes under gram panchayat plan and it is on non NA land and the flat is on 1st floor., Will I get a home loan

I am a farmer . My monthly income 7000.. I want a home loan of 300000 (SBI gramin niwas scheme ).. am I eligible ??Please ans me .. thank you sir


Any one help me

I applied for SBI Gram Nivas home loan online... the field officer contacted me... he said that in the rural area we are not providing home loans under Gram Nivas scheme... but i applied for gram nivas. Is it for rural? On agriculture land is it possible... and now what can i do?