Securing a loan to buy the house of your dreams is easier than ever before, especially if you are a state or central government employee. The reason? You can enjoy housing loans at affordable home loan ratesand a slew of other benefits while applying for a loan.
Wondering what kind of policy reforms and special privileges you are entitled to as a government employee? Read on to know all about them.
Benefits on home loan for government employees
• Affordable interest rates
Getting a loan at a low home loan interest rate can help you save on interest. And as a government employee, you can save a lot more. Why? Because lenders preferentially offer more affordable interest rates to you. But that’s not all. If you are a female government employee, you can save even more since your housing loan interest rates will be 0.05% lesser than the rates offered to your male colleagues.
• Comfortable loan repayments
Since housing loans are long-term loans, paying off EMIs every month can put undue stress on your finances. But as a government worker, you can get special privileges to pay your housing loan EMIs. According to a new policy, you can pay off your housing loans at a low EMI capped at 50% of your monthly income until you reach 75 years of age. In fact, you can benefit from this policy even if you are on a government-offered pension or not under the immediate payroll of a government office.
Certain lenders also allow you to custom-build repayment plans according to your repayment capacity. Naturally, getting a loan with lenders offering these schemes can help you make your repayments even more affordable.
Struggling to choose the right EMI repayment plan? Use an online home loan EMI calculator to help you out.
Additional Read: Guide to Finding the Best Home Loan Scheme in 2022
• No processing charges
Home loan processing fees typically range between 0.5 and 1% of the loan amount. And considering housing loans are large loans, these are a significant amount of funds. But as a government employee, you can avail these loans without any processing fees. This helps you get a loan without making a dent in your savings upfront. Keep in mind some lenders will charge a special service fee or a CIBIL charges fee.
• Advance corpus
Looking to construct your own home using a housing loan for government employees? Well, you can now avail of a House Building Advance (HBA) corpus from the government to support the construction costs. That’s right! The government now allows you to get a loan of up to Rs. 25 lakhs for home construction and up to Rs. 10 lakhs for home expansion projects alongside the housing loan amount.
• Couple benefits
If you and your spouse are government employees, both of you can claim benefits on housing loans individually. For instance, you and your spouse can claim the mandated HBA benefits separately to construct your new house.
Additional Read: How to Apply for a Home Loan If You Are a Self-Employed Individual
Getting a housing loan as a government employee has several benefits, but if you’re looking to get the most out of your loan, you must get one with a suitable lender. So, turn to Tata Capital to get affordable interest rates and benefit from quick processing and disbursal times. Connect today!