Blox Logo
You haven’t selected any properties.
Please select minimum 2 properties to compare
Discover. Experience. Buy.
Get Personalized experience
by logging in
Sign Up
  • building-primaryProperty Listings
  • developer-primaryDevelopers
  • users-primaryAbout us
  • blogs-primaryBlogs
  • pressmentions-primaryPress Mentions
  • phone-primaryContact Us

7 Home Loan Benefits that Government Employees Enjoy

Blox Social
Posted on
Apr 3, 2023

A home loan is a type of borrowing that offers assistance to both self-employed and salaried individuals when it comes to purchasing a residence. This type of loan is secured, which means that the borrower must provide collateral in the form of a residential property or a plot of land to obtain the loan.  

However, government employees have an advantage over others regarding home loans. This is because they have more stable jobs and regular salaries. This not only makes it easier for them to obtain loans from housing finance companies but also makes them low-risk borrowers. As a result, many companies also offer government employees several attractive loan deals with lower interest rates. All of this makes home loans a more affordable and convenient financing option for them.

Let us have a look at the different home loan benefits for government employees:

1. Affordable EMIs and Convenient Repayment Terms

As mentioned earlier, government officials have a secured work profile which is one of the most sought-after features that financial institutions often look for. And this is the reason they willingly offer special privileges to them. Moreover, even financial institutions get to enjoy some additional benefits. They can simply choose a repayment tenure with EMIs they can conveniently afford to repay on a monthly basis. Also, people planning on taking home loans can qualify for a home loan of up to 90% of the property’s market value without any worries. 

2. Government Schemes

The government of India always strives to come up with better schemes and programs that can ensure a hassle-free execution of home loans for government employees. And there are some special schemes accessible to government employees when it comes to home loans. Some of these schemes include the Pradhan Mantri Awas Yojana (PMAY), the Credit Linked Subsidy Scheme (CLSS), and the Interest Subsidy Scheme (ISS), which can allow government officials to fulfil their dream of owning a home.

3. Minimal Documentation

In order to maintain transparent financial conditions, housing finance companies demand certain documents from borrowers. However, government employees have to get minimal documentation which makes the process hassle-free. Some of the documents that they must present are KYC documents (Aadhar, PAN, driving license), income proof which usually includes salary slips, bank statements, and Form 16. Also, some property-related documents are mandatory to be presented; these may include the approved plan and property title.

4. Tax Benefits

In addition to the above-mentioned benefits, government employees can further benefit by claiming tax benefits on their home loans. This is because they are eligible to claim a tax deduction of up to ₹ 2 lakhs on the interest component under Section 24. They can also claim up to ₹ 1.5 lakh on the principal amount under Section 80C. And in the case of a joint home loan, both the co-borrowers are eligible to claim these tax deductions. This can be done while filing their respective ITRs.

5. No Processing Fees

A government employee gets a sanction quicker after they qualify for a home loan. And since this is a personalised loan, the borrower does not have to pay any processing fee on the loan. This means that the person can avail of a much better loan amount and also on nominal rates that can be repaid comfortably. However, it must be noted that the borrower is not exempted from the special service fees or CIBIL charges on the sanction of the loan.

6. More Advance Corpus

House Building Advance, commonly known as HBA, is an assistance that is offered to employees that work at the Central Government. This is offered to assist the employees in the construction or acquisition of houses. The HBA scheme was first launched in the year 1956 in the form of a welfare measure. The Ministry of Urban Development is the nodal

7. Ministry for executing it.

Under this scheme, the employee was able to take Rs. 7.5 lakhs, but with modifications to the scheme, the person can now avail of a loan for up to Rs. 25 lakhs that would be termed as HBA. Moreover, the employees can get at least Rs 10 lakh for home expansion projects. 

8. Married Couple Benefits

Employees of the central government can avail of HBA. But the cherry on the cake is that if you and your spouse are central government employees, you can avail of two separate loans from your respective HBA, making home-buying a lot more convenient for you. 


The government of India has taken various initiatives to make it easier for people to buy new homes and renovate their existing ones. And why not! A house is the most important asset for everyone. And if you are a government official, be sure that you avail all these benefits the next time you are on the hunt for a new property. 

Finance & Legal