The government has provided a housing loan relief of Rs. 5 million to its employees. 5 million from the government!
Are you also an official working in the government or local government service? Are you aware of the latest property loan scheme offered by the government to make your dream of owning your home come true?
Here is the complete description with the concessional interest rates and conditions changed according to the latest circular:
Eligibility for the Housing Loan:
* Being a pensionable officer with permanent service.
* Having completed a minimum of 05 years of service.
* Special advantage: If both husband and wife are working in the government service, both can apply for two separate loans.
You can use this loan for:
To purchase a suitable land to build a house.
To build/complete work or repair a house on land in your or your partner’s name.
To purchase a house or apartment with land.
Loan Amount and Repayment:
Maximum Loan Amount: 84 times your basic salary or Rs. 50 lakhs (5 million), whichever is lower.
Repayment Period: Up to 25 years or until you reach the age of 60.
How Interest Subsidy Works (Latest Status 2026)
When the bank interest rate is approximately 11% as per the market interest rate (AWPLR), the government provides a huge interest subsidy for you:
For the first 30 lakhs, you have to pay only 7% interest. (The remaining 4% is borne by the government).
]For the next 20 lakhs: You have to pay only 9% interest. (The remaining 2% is borne by the government).
Ease of Installment Payment:
The loan installments and the government’s interest subsidy portion are remitted directly to the bank through your institution head. The government adds the interest subsidy to your salary, so you get extra relief.
Basic documents required to apply:
Loan application certified by the head of the institution.
Salary slips and service certificates for the last 3 months.
Certified copies of the land deed and blueprint.
Approved house plan and estimate (if a house is being built).
Download Circular Related to Government to Housing Loan
