In a bid to empower the state and central government employees, financial institutions are offering customised benefits and concessions on Home Loans for government employees. Apart from these Home Loan benefits, housing reforms have also been put in place to help those employed in the government sector. These policy changes and benefits allow you to become a homeowner with ease.
Take a look at the Home Loan benefits you are entitled to as a government employee.
Lower EMIs and Extended Repayment Terms
Financial institutions have started privilege programs especially for government employees like you. Those on government pension can also avail these benefits. The new scheme offers extended repayment terms until the age of 75, and lower EMIs which are capped at 50% of your net monthly income. The maximum tenor on these special loans is however capped at 30 years. Lenders such as Bajaj Finserv offers Home Loan for Government Employees on flexible terms too. You can avail a sanction from Rs.30 lakh up to Rs.10 crore on easy eligibility criteria at a nominal interest rate. Not only that, you can repay the loan conveniently by paying nothing extra towards part-prepayment and foreclosure.
No Processing Fees
Home Loans for government employees are tailor-made loans and include special benefits with pre-determined eligibility criteria. Once you are deemed eligible for such a loan, lenders will sanction your Home Loan quickly. To increase your affordability, lenders also remove the processing fee on your loan. This means that you get a high amount loan on reasonable rates and flexible terms. Do keep in mind that special services fees or CIBIL charges fee, may still be applicable.
Lower Interest Rates, further Reduced for Women
The Home Loan interest rates applicable on Home Loans for government employees are a lot lower as compared to conventional Home Loans. Additionally, as a women employee, you can avail the Home Loans for government employees at up to 0.05% lower interest rate. This means buying a home and repaying your loan is more convenient and easier for you.
Here are the revisions to the House Building Advance that also benefit you.
Increase in Maximum Advance Offered
The House Building Advance or HBA, through which the government loans its employees advances to construct houses, has been extended to Rs.25 lakh from its previous Rs.7.5 lakh limit. What’s more, the advance offered for home expansion projects has been capped at Rs.10 lakh, which is nearly 5 times more than the previous cap of Rs.1.8 lakh. The cost ceiling has also been increased from Rs.30 lakh to Rs.1 crore at present.
Cap on Interest Rate
The Home Loan interest rates for government employees like you has been set at 8.5% simple interest, which the government proposes to revise once every 3 years. This allows you to plan your home buying whenever the rates seem in your favour and suit your budget.
Both Spouses can Avail of the Advance Independently
In case both you and your spouse are central government employees, then both of you are entitled to avail the advance either jointly or independently. Previously, only one spouse was entitled to the advance. This helps you both of you avail the benefits.
With a customised Home Loan at your fingertips, it is now easier for you to plan and buy a home based on your financial standing.