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Jul 10
0 Cheaper home loans for government employees

Cheaper home loans for government employees

Here is a list of schemes with zero processing fees, lower EMIs and much more

Several banks are introducing a plethora of benefits in the form of home loans particularly to the state as well as central government employees with defence personnel. Bankers normally extend striking interest rates on home loans to government employees when compared to the general class. Apart from this, home loans for these employees are filled with benefits like zero/low dispensation charges, inexpensive EMIs, no penalizations on pre-payment and much more. Conspicuously, home loans are a superior medium for borrowers to finance their dream house, since these are flexible, decrease the load of heavy expenditures and permit repayment in a well-timed manner.

Home loans from SBI for government employees

India’s biggest moneylender State Bank of India (SBI) has declared that it will offer less expensive home loan schemes, SBI Privilege Home Loan and SBI Shaurya Home Loan to Central government workers and defence personnel as their repayment capacity has increased in the wake of the administration’s acknowledgment to the recent proposition of the Seventh Pay Commission to hike the salary of these staff by 23.55%. The rise in allowances turns out to be 63%, as indicated by the proposals of the commission. According to the new plans, SBI has brought down the interest rate by 0.05% (5 basis points) while offering employees the alternative to reimburse the loan up to 75 years of age, rather than 70 years as of now.

In case you are a central government employee, and seeking a home loan, then for your convenience here is a list of excellent ones provided by banks.

1. SBI privilege home loan:

SBI Privilege Home Loan is merely meant for government employees. People who are employed with Central or State Government which incorporates PSBs, PSUs of Central Government, as well as other individuals with pensionable services, are qualified to apply for this home loan.

The loan sum will be ascertained by considering factors like income of the applicant and their repaying capability, age, assets as well as liabilities, price of planned house/flat and so forth.

Features of the SBI Privilege Home loans are as below:

  • Lower rate of interest
  • Processing  charge is zero
  • No hidden costs
  • No penalty for prepayment
  • Interest will be charged on every day decreasing balance
  • The loan can be repaid up to 30 years
  • Women borrowers will get an interest concession
  • If Check Off is furnished then interest concession
  • Full discharge of processing fee.


  • Resident Indian
  • 18 years minimum age and 75 years is maximum age
  • The loan term is up to 30 years.

Rate of interest on these kinds of home loans is offered, between least 8.60% and 9.25% reckoning on the amount that has been decided to borrow. If a woman borrows under this scheme then the interest rate ranges from lowest 8.55% to 9.15%.

2. SBI Shaurya Home loan:

SBI Shaurya Home Loan plan is committed to the Army plus Defence Personnel of the nation. This unique home loan plan will be merely rendered to the defence employees.

Two different rates of interest are provided by SBI under this scheme: check off as well as with no check off.

With check off

A home loan with check off denotes that the employer accords to take away EMIs from the salary of the employee and forward the same amount straight to the latter’s lender that is the bank.

Without check off

Home loan without check off is similar to the normal ones where you visit your bank and choose the home loan at your cost.

The rate of interest for women borrowers in both instances that is with check off or without check off is same. Other categories of people who opt without check off facility get a 5 basis point of the higher rate provided on home loans. Therefore to go with check off facility is without a doubt a much better option.

Moreover, there is an interest concession for ladies borrowers, in addition, to check off the home loan.

Likewise, there is Zero processing charge and no hidden charges for pre-payment while a penalty is imposed in this home loan.

Further, one of the fascinating key highlights is that the rate of interest depends on daily decreasing balance. In addition to this, the term given under the SBI’s Shaurya home loan is a bit higher, while the repayment tenure is maxed up to 30 years.

The rate of interest is imposed relying on your term as well as the principal amount. Likewise, it is different for women plus other classes.

3. PNB Pride housing loan:

The PNB Pride housing loan is to guarantee the accessibility of Housing Loan at striking rates as well as make sure that all government employees have a house.

PNB’s rate of interest for these employees is at MCLR plus 0.20% spread on a home loan up to Rs 75 lakh. While MCLR plus 0.25% spread is given on more than Rs 75 lakh loans. PNB’s MCLR is at 8.45%.

Repayment process:

Advance for completing repairs/renovation/alterations of the house/flat: maximum is 15 years comprehensive of moratorium period, if any,

While a loan for others:  is maximum 30 years comprehensive of moratorium period, if any.

The pay of the life partner and earning children regardless of whether married or unmarried and of the joint proprietors can be included for deciding the income to compute the borrowers’ reimbursing capability.

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