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Home Loan Benefits For Government Employees

Updated: Apr 05, 2022

Possessing a house is viewed as a significant achievement with regards to accomplishing achievements throughout everyday life. A large number of lending institutions offer Home Loan for Government Employees to assist them financially for buying a home. Home Loan is viewed as quite possibly the most reasonable financing choice accessible, with low loan costs and a number of ways to assist you with getting a good deal on charges or giving tax cuts, as well as giving adequate liquidity and permitting your cash to develop.

Banks configuration offers and concessions on home credit/loan for government representatives to see the value in their important commitments as a state or local government worker. Notwithstanding these home advance benefits, you can exploit an assortment of strategies intended to help government workers to fulfill their home credit needs.

Bringing uplifting news for government workers building houses, the public authority has declared decrease in loan fee on house building advance and connecting to 10-year government protections yields. This is relied upon to make such loans less expensive for government representatives building houses and along these lines help interest for lodging.

Advantages For The Government Employees

1. Lowered EMIs: Government representatives can exploit exceptional home credit plans presented by the loan specialists. As per the new home credit strategy, you can make the credit/loan reimbursements by means of EMIs (Equated Monthly Installments) that are covered at half of your month to month pay until you arrive at the age of 65. Government representatives on quick finance as well as resigned government workers on annuity can take levy of these advantages.

2. Low Interest charge: For the government employees, the interest rate is extremely low. This is valid for female government employees. In fact, for the female employees, many lenders offer lower home loan interest rates as compared to their male counterparts.

3. Low Processing charges: To be qualified for a home credit, an administration worker should satisfy the guideline home credit/loan qualification measures. Candidates who are qualified for a credit will get their advance authorized without hanging tight days for endorsement. Depending on your profile and eligibility, some lenders may even offer to waive off processing fees*.

4. Other Benefits: There are loads of other benefits like one for joint applicants and owners. Joint co-applicants working in government offices can avail even cheaper rates through the House Building Scheme (HBA) scheme introduced.

Eligibility Criteria and Documents Required

There are some criteria among lenders to check if the applicant is eligible for a loan.

For example:

  • The government employee must be an Indian passport holder.
  • The individual must also have more than 1-3 years of experience.
  • There is also an age consideration for the employees. The individual must be in the age bracket of 21-65 with a CIBIL score of not less than 700.

Must Read : Cibil Score for Home Loan

Please note that the above criteria vary among lenders. To know the detailed home loan eligibility criteria for a SMFG Grihashakti home loan, please visit our page or contact us.

While applying for any sort of credit, there are documents required for verification. This is no different for a government employee trying to avail a home loan. Verification proof like Passport, Aadhar card or driving license is required to prove an individual’s identity. Form 16 or the most recent income slip with the address proof is required as well. Lastly, the lender will also require the past 6 month’s bank statement.

Let us get an understanding about the fees, charges and numbers associated with regards to a home loan.

Fee Type Charges Applicable
Rate of Interest (ROI) Starts at 6.50%*
Processing fees (PF) 0% - 3%* of the total loan amount
Loan statement (charge) Zero*
Interest statement charge (and principal) Zero*
Bounce charges INR 3,000 /-*
Penal interest (charge) 0% - 2%* per Month
Secure fee (one time) INR 3,999 /-*

*Please note that this varies among lenders, and will depend on multiple factors, including the lender’s policy at the time of loan application.

Home Loan For Central Government Employees

The Central Government workers, who wish to develop their own home, can use the House Building Advance (HBA). The HBA benefited from first October 2020 to 31st March 2022 will come at a straightforward loan cost of 7.9%. The public authority had before modified the House Building Advance (HBA) rules for the Central Government Employees joining the acknowledged proposals of the seventh Pay Commission.

Back in September 2020, the FM had reported bringing down the loan cost for House Building Advance (HBA), subsequently giving help and straightforwardly affecting the Central Government representatives in the country. Going ahead, the loan cost of House Building Advance (HBA) will be connected to the 10-year G-Sec yield on how much development is taken for building a home.

Must Read : Government Gives Major Boost To Housing And Home Loans In India

*Terms and conditions apply. Please note that this article is for your information only. Loans from SMFG Grihashakti will depend on various factors including our policy at the time of loan application.

Disclaimer: *Please note that this article is for your knowledge only. Loans are disbursed at the sole discretion of SMFG Grihashakti. Final approval, loan terms, disbursal process, foreclosure charges and foreclosure process will be subject to SMFG Grihashakti’s policy at the time of loan application. If you wish to know more about our products and services, please contact us.

SMFG India Home Finance Co. Ltd. (Formerly Fullerton India Home Finance Co. Ltd.)
CIN number: U65922TN2010PLC076972

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