Financial institutions offer tailored deals and concessions on home loans for government employees, keeping your vital efforts as a state or central government employee in mind. Added to these home loan benefits, you can also make use of the long list of reforms to support the home buying needs of those in the employ of the government. Read on to know more about the home loan benefits and the policy reforms you are entitled to as a government employee and use them to become a homeowner in no time.
Comfortable repayment terms and affordable EMIs
Keeping your specialised work profile in mind, most financial institutions offer privileges to government employees like you. You can enjoy these privileges even if you are on a government pension and not on the immediate payroll in a government office. As per the new policy, you can repay your home loan until the age of 75 via a low EMI capped at 50% of your net monthly income. In addition, you can avail of a Home loan for government employees from lenders like Bajaj Finserv.
You can qualify on easy eligibility criteria and avail a sanction of Rs. 5 crore, or higher at a competitive interest rate. Apart from this, you can repay the loan conveniently by paying no extra charge towards part-prepayment and foreclosure.
Competitive interest rates reduced further for women
Unlike conventional home loans, the home loan interest rates applicable on home loans for government employees are a lot lower. Moreover, as a female government employee, you can get home loans for government employees at up to 0.05% lower interest rate. So, now you can plan for a home and execute your plan by funding it affordably using a home loan created just for you.
Zero processing fees
Once you qualify for the home loan for government employees based on the pre-determined eligibility criteria, getting a sanction on your home loan is quick, without you having to wait for days on end. Since this is a customised loan, not only is the process of getting a sanction fast, but most lenders also eliminate the processing fee on your home loan. It means that you can avail of a substantial loan on nominal rates and comfortable terms without having to offload a large part of your savings. However, you may have to pay special service fees or CIBIL charges fee on your sanction, if applicable.
Keeping these home loan benefits in mind, consider the alterations to the House Building Advance to benefit further.
Increased advance corpus
HBA or the House Building Advance is a corpus through which the government lends funds to its employees as advances to offer financial support on their home construction. As a government employee, you were allowed to take Rs. 7.5 lakh of HBA earlier. However, as per the policy changes, you can now avail of a loan of up to Rs. 25 lakh as HBA. In addition to this, the previous limit of Rs. 1.8 lakh offered for home expansion projects increased at least 5 folds capped at Rs. 10 lakh. Moreover, the cost ceiling has also been hiked from Rs. 30 lakh to Rs. 1 crore at present.
You can plan your home purchase and buy it whenever you feel that the interest rate favours you. It is because the home loan interest rate for government employees like you has been fixed at 8.5% simple interest at present. However, this will be revised by the government once every 3 years.
Benefits as a married couple
As of date, the government has altered the existing norms for advances, and at present, both you and your spouse are eligible for individual advances. It means that if both of you are central government employees if need be, both of you can take a loan from your respective HBA without any issues.
With a customised home loan for government employees at your fingertips, it is now your turn to buy a home of your choice without compromising or lowering your budget.
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