As far as Home Loans are concerned, government employees enjoy easier access and special privileges than others. A stable job with a regular salary makes them low-risk borrowers for loan companies. It encourages many housing finance companies to offer them lucrative loan deals with low-interest rates and favorable terms and conditions. Special benefits and easier accessibility make Home Loans a better and cheaper funding option for government employees.
Here are 3 benefits they enjoy with Home Loans for government employees compared to self-employed professionals and salaried employees in the private sector.
1. Affordable EMIs and Convenient Repayment Terms
Considering a secured work profile, most financial institutions provide special privileges and have easier Home Loan eligibility criteria for government employees. They can enjoy these benefits even if they are pensioners and not on a government office’s direct payroll. Many housing finance companies like PNB Housing allow borrowers to repay their loans until they are aged 70 with a low credit score requirement of 611 or above. Borrowers can choose a repayment tenure with EMIs they can easily afford to pay each month. A Home Loan EMI calculator helps calculate the EMIs for different loan tenures.
Aspiring borrowers can qualify for a Home Loan of up to 90% of the property’s market value without hassle. Besides, they can conveniently repay the loan without paying any extra charges towards foreclosure or pre-payments.
Must Read: How To Get A Home Loan Approved Instantly?
2.Minimal Documentation
Due to transparent financial conditions, housing finance companies require minimal documents from government employees. Some necessary Home Loan documents including KYC documents ( Aadhar, PAN, Driving license), along with income proof, salary slips, bank statements, and form 16. Property-related documents are also mandatory, including the approved plan and property title.
3.Tax Benefits
In addition to reduced interest rates and low processing charges, government employees can boost their savings by claiming tax benefits on their Home Loans. They can claim a tax deduction of up to ₹ 2 Lakh on the interest component under Section 24 and up to ₹ 1.5 Lakh on the principal component under Section 80C. In the case of a joint Home Loan, both co-borrowers can claim these tax deductions while filing their respective ITRs.
With customized Home Loans available at their fingertips for government employees, prospective homebuyers can buy their dream home without compromising their budget. There are numerous lending institutions in Indian offering lucrative Home Loan offers to government employees at customized eligibility & favorable terms and conditions. Use a Home Loan eligibility calculator to borrow adequately and save for a sufficient down payment to get the maximum benefit.
