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Home » Home Loan Plans for Government Employees: Create a Safe Harbour for Your Dream Home with Trusted Benefit

Home Loan Plans for Government Employees: Create a Safe Harbour for Your Dream Home with Trusted Benefit

Introduction 

Even on the home loan, those who are working in the government sector are offered many more facilities. All the foregoing advantages are unique in achieving the broader vision that owning a home should be a reality, within the reach, and easily manageable. Because they receive monthly and annual salaries and have job security, those in the government are among the lowest risks to lenders, and thus can afford to get something which comes with attractive interest rates and loan conditions. Besides, they can also receive lower processing charges, liberal documentation requirements, and more extended repayment periods. 

Key Features

Interest Rates: Those that are civil servants, usually receive government discount rate lower than employee in the private sector. This can go along way into cutting down on the cost of the loan.

Loan Amounts: Because the nature of the jobs ensures that the people occupy those positions for extended periods, the lenders are willing to advance larger amounts of money.

Repayment Options: Most firms give those that use their services as sources of finance flexible repayments terms, possible longer tenures will help in minimizing installment prices.

Special Schemes: Different banks and other organizations providing financial services also float certain concessions and offers for the representatives of the government only. This can involve lower processing fees of the products and other incentives.

Eligibility Criteria: There have been instances where the criteria of the government employees have been easier to meet. For example, minimum employment of 3 years and permanent contract can be sufficient,

Benefits

  • Job Stability: Government based jobs are viewed more secure and there by minimize the risk aspect for any lender involved in such jobs. And this stability is reflected on the borrower’s side in the form of better loan terms.
  • Subsidies and Grants: Employees of the country’s government can benefit from various dispensations and rebates, and hence they can establish homes at an even lower price.
  • Priority Processing: When the application is made by a government officer, the application is quickly fast-tracked, and the money approved and disbursed easily.
  • Special Programs: Initiatives like the Public Servant Next Door provide up to $8,000 in grant money, together with up to $15,000 in down-payment assistance.2 These programs aimed at assisting home ownership among the ministries employee’s away from the urban centre.
  • No Prepayment Penalties: Most of the lenders offer government employees the privileged to repay any of their loans earlier without having to pay the prepayment penalties.

Restrictions on government employees getting home loans?

 Are civil servants permitted to borrow from a bank to acquire houses for their families? Here are some basic things that you must know about the limitations.

  • Any of the government servant intending to take the home loan must be between the ages of 21 and 70 years at time of taking the home loan.
  • For property size of below 150 SFTs, property financing is completely out of question no matter whether the applicant is a government servant or not.
  • The maximum funding percentage (LTV) or loan to value ratio may comprise of upto 90% of the property value in case of properties needing financing Up to Rs30 lakhs. The LTV comes down to 80% of the house price for houses up to Rs75 lakhs and below this amount the LTV comes down further to 75%.
  • It is a prerequisite for government servants that basic documentation is still mandatory though not very rigorous as in the case of other property documentation formalities. Government servants also prerequisite the presentation of the identity proof, the proof of residence and proof of relationship in case of joint home loans. Daft papers like government identity card, PF statement, passport, Aadhar card, PAN are all fundamental papers that can be received.
  • With these, you are all set to go home loan for government employees. Here you also can also able to get concessional home loan interest rate for the government employee.

Options for Loans / Banks / NBFCs

Banks /Nbfc R.O.I Processing Fees Loan

Amount

Cibil Score Apply Now
HDFC Bank Home Loans 8.45% – 10% (Reducing Per Annumn) 0.5% – 1% 5.00 Lacs and above 650 or above https://referloan.in/loans/hdfc-bank-home-loan
Kotak Bank Home Loan 8.5% – 10.75% (Reducing Per Annumn) 0.5% – Rs.10000 20.00 Lacs and above 675 or above https://referloan.in/loans/kotal-bank-home-loan
Bank of India Home Loan 8.5% – 10.75% (Reducing Per Annumn) 0% – 0.25% 10.00 Lacs and above 675 or above https://referloan.in/loans/bank-of-india-home-loan
Canara Bank Home Loan 9.25% – 13.8% (Reducing Per Annumn) 0% – 0% 10.00 Lacs and above 675 or above https://referloan.in/loans/aavas-bank-home-loan
Aavas Housing Home Loan 9.9% – 18% (Reducing Per Annumn) 1% – 1.5% 25.00 Lacs – 5.00 cr 650 or above https://referloan.in/loans/aavas-bank-home-loan
Bajaj Housing Finance Home Loan 8.45% – 10% (Reducing Per Annumn) 0.2% – 0.5% 5.00 Lacs – 75.00 cr 650 or above https://referloan.in/home-loan/bajaj-housing-finance
PNB Housing Home Loan 8.75% – 14% (Reducing Per Annumn) 0.25% – 0.5% 5.00 Lacs – 20.00 cr 625 or above https://referloan.in/loans/pnb-hfl-loan-home-loan
Shri Ram Housing Finance Home Loan 11.5% – 13% (Reducing Per Annumn) 1% – 1.25% 10.00 Lacs – 1.00 cr 650 or above https://referloan.in/loans/shri-ram-housing-finance-home-loan
We Rize Home Loan 10% – 18% (Reducing Per Annumn) 0.5% – 1% 5.00 Lacs – 75.00 Lacs 650 or above https://referloan.in/loans/we-rize-home-loan
Mahindra Finance Home Loan 9% – 15% (Reducing Per Annumn) 1% – 3% 3.00 Lacs – 75.00 Lacs 650 or above https://referloan.in/loans/mahindra-finance-home-loan
Capri Global Bank Home Loan 9.5% – 15% (Reducing Per Annumn) 1.25% – 1.5% 10.00 Lacs – 1.50 cr 650 or above https://referloan.in/loans/capri-global-home-loan
Tata Capital Home Loan 8.6% – 11% (Reducing Per Annumn) 0.2% – 0.5% 30.00 Lacs – 7.00 cr 750 or above https://referloan.in/loans/tata-capital-home-loan
Aditya Birla Home Loan 8.9% – 11% (Reducing Per Annumn) 0.5% – 1% 25.00 Lacs – 25.00 cr 675 or above https://referloan.in/loans/aditya-birla-home-loan
Piramal Finance Home Loan 10.5% – 14% (Reducing Per Annumn) 1% – 1.5% 30.00 Lacs – 5.00 cr 650 or above https://referloan.in/loans/piramal-finance-home-loan
Satin Housing Home Loan 11% – 18% (Reducing Per Annumn) 2.5% – 3% 5.00 Lacs – 1.00 cr 700 or above https://referloan.in/loans/satin-housing-home-loan
Indiabulls Finance Home loan 9.4% – 10% (Reducing Per Annumn) 1% – 1.5% 5 Years – 25 Years 675 or above https://referloan.in/loans/indiabulls-finance-home-loan
Axis Finance Home Loan 9.5% – 11% (Reducing Per Annumn) 0.5% – 1% 30.00 Lacs – 10.00 cr 650 or above https://referloan.in/loans/axis-bank-asha-home-loan
ICICI Home Finance Home Loan 9.5% – 11% (Reducing Per Annumn) 0.5% – 1% 10.00 Lacs – 5.00 cr 650 or above https://referloan.in/loans/icici-home-finance-home-loan

 

General Eligibility and Document Required for This Type of Loan

Eligibility

  • Employment: One has to be a career civil servant.
  • Age: It can range from 21 years, 60 years.
  • Work Experience: At least 1 year of service in the current company/organization.
  • Credit Score: They prefer clients with good credit scores, generally r value of or above 650.

Documents Required:

  • Proof of Identity: PAN card, Aadhaar card.
  • Address Proof: any utility bill or rent agreement.
  • Business Proof: Registration certificate, the business license.
  • Bank Statements, Bank Statement, Income Tax Return and Profit Loss A/c

How Referloan Can Help 

 ReferLoan is among the rapidly advancing businesses of the Indian nation. It serves all sorts of financial needs through banking and non-banking segments where it interconnects the clients as per the need.

This is how ReferLoan can help!

  • Loan Options: ReferLoan appreciates that government employees operate under different financial needs and provides them with lenders with special home loan offers. This way they get the best interest rates and mode of payments due to the highly stable income that working in a particular organization provides.
  • Exclusive Offers: ReferLoan collaborates with a range of banks and other financial providers involved by providing special privileges to employees of the government.
  • End-to-End Support: ReferLoan offers detailed help from decision-making of a suitable home loan plan to documentation process and everything in between. This assist government employees to find the best loan solution in the shortest time possible.
  • Fast Approval Process: Since ReferLoan has established itself, government employees will be able to get a loan approval and disbursement faster, and thus ease their journey to homeownership.
  • Expert Guidance: The team at ReferLoan provides guidance and recommendations regarding financial expenses – especially to the different government employees. No matter it is about loan approval criteria or working out the interest rates.

Frequently Questions

  • What restrictions does the government place on its employees in availing home loans?

A government employee needs to meet certain criteria such as; The employee must be on a permanent employment with sufficient years of service, good credit rating and proof of income. Particular criteria of who is eligible for what depends with the lending company.

  • Should government employees get special home loan benefits?

Yes, government employees are privileged to features such as low and subsidized interest rates, affordable processing fees, flexible repayment plans, and longer tenures bearing in mind they have secure employment.

  • How much loan can a government employee borrow?

Regarding loan amount, it depends on the total of income and other consideration features such as credit scores and the value of property. However, civil servants can approach lending institutions and access larger loans basing on their stable income.

  • Are their home loans that are offered only to those who work for the government?

Most of the banks as well as other financial institutions provide privileges to those employees who are working under state or central government and for this they have special home loan schemes where the rates are comparatively low, documents required are very few besides; the processing of the loan is done very quickly.

  • What papers do government employees need to present to be eligible for a home loan?

Identity proof, residence proof, salary slip, proof of employment, bank statements, property documents, as well as, Form 16 for income documents are recognized regular documents.

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