Cheap home loans for government employees: Here is a list of schemes with zero processing fees, low EMIs and much more

Many banks have been introducing various benefits in the form of home loans especially to the state and central government employees including defence personnel. Bankers generally offer attractive interest rates on home loans to government employees compared to general category. Not only that, home loans for these employees are packed with benefits like zero/low processing charges, cheap EMIs, no penalties on pre-payment and much more. Notably, home loans are a better medium for borrowers to fund their dream house, as these are flexible, reduce the burden of heavy expenses and allow repayment in a timely manner. 

If you are a central government employee, and looking for availing home loan, here’s a list of attractive ones offered by banks. 

1.  SBI Privilege Home loan:

SBI Privilege Home Loan exclusively for government employees. Individuals who are employees of Central or State Government which includes PSBs, PSUs of Central Government and other individuals with pensionable service are eligible to apply for this home loan. 

The loan amount will be determined by taking into consideration factors such as applicant income and repaying capacity, age, assets and liabilities, cost of proposed house/flat etc.

Features of SBI Privilege Home loans are: 

• Low Interest Rates
• Zero Processing Fee
• No Hidden Charges
• No Pre Payment Penalty
• Interest charges on Daily Reducing Balance
• Repayment up to 30 years
• Interest Concession for Women Borrowers
• Interest Concession in case Check Off is provided
• Full waiver of Processing Fee.

Eligibility: 

• Resident Type: Resident Indian
• Minimum Age: 18 years
• Maximum Age: 75 years
• Loan Tenure: up to 30 years.

Interest rates on home loan here are offered, between lowest 8.60% to 9.25% depending upon the amount you decide to borrow. While for women home loan borrowers, the interest rate ranges from lowest 8.55% to 9.15%.

2. SBI Shaurya Home loan:

SBI Shaurya Home Loan scheme is dedicated to the Army and Defence Personnel of the nation. This special home loan scheme will be only provided to the defence employees.

There are two different interest rates provided by SBI: check off and without check off. 

Home loan with check off means that the employer agrees to deduct EMIs from employee's salary and remit the same amount directly to latter's lender (bank). Without check off facilty in home loan is normal one where you can go to your bank and opt for home loan on your cost. 

Women interest rates are similar in both SBI's check off and without check off faciltiy, whereas there is 5 basis point higher rate provided by the lender on home loans for without check off facility to others category. Hence, check off facility is much better to opt.

Additionally, there is a interest concessions for women borrowers and check off home loan. 

Also, there is Zero processing fee and no hidden pre-payment charges penalty is levied in this home loan. 

Further, one of the interesting key feature is also interest rates on daily reducing balance. Apart from this, the tenure offered under SBI's Shaurya home loan is also higher, maximum up to 30 years. 

Interest rates are levied depending upon your tenure and principal amount. Also, it is different for women and others categories.

Interest rates on SBI Shaurya home loans are similar like above. 

3. PNB Pride housing loan:

This type of loan is meant to ensure availability of Housing Loan at attractive rates and ensure a house for all government employees.

PNB's interest rates for these employees are at MCLR plus 0.20% spread on home loan upto Rs 75 lakh. While MCLR plus 0.25% spread is given on above Rs 75 lakh loans. PNB's MCLR is at 8.45%.

Repayment procedure: 

Loan for carrying out repairs/ renovation / alterations to the house/flat: Max.15 years inclusive of moratorium period, if any. While Loan for Others: Max. 30 years inclusive of moratorium period, if any.

The income of the spouse and earning children (whether married or unmarried) and of the joint owners can be added for determining the income for the purpose of borrowers` repaying capacity.