Rural Housing Loan Schemes Available in India

Rural Housing Loan Schemes Available in India

The population of India in the year 2019 is estimated to be a whopping 1.37 billion, of which 66.46% resides in rural areas, amounting to over 910 million people. It, therefore, doesn’t come as a surprise when the leading banks of the country offer some compelling rural home loan schemes- aimed at offering the much needed financial assistance to the rural people looking forward to purchasing or construct residential properties.

Let us take a quick look at some of the pioneering Housing Loan schemes popular in rural India.

 

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1. HDFC Rural Housing Loan

This scheme by the HDFC bank is aimed at offering hassle-free loans to Agriculturists, Planters, Horticulturists, and Dairy Farmers amongst others, who intend to purchase an under-construction, new or existing residential property in rural as well as urban areas.

Eligibility for HDFC Rural Housing Loan

Any Indian resident, who is between the age of 18 and 65, is eligible to apply for this loan. The applicant should either be self-employed or salaried with a steady stream of income, in order to be considered for the loan.

The loan can be taken by an individual by themselves, or along with a co-applicant.

Maximum Funding for HDFC Rural Housing Loan

For a property costing up to Rs. 30 Lakh, the bank offers a maximum loan amount of up to 90% of the property’s value.

In case the property costs between Rs. 30.01 Lakh to Rs. 75 Lakh, the maximum loan amount is 80% of the property’s value.

If the property costs upwards of Rs. 75 Lakh, the bank offers a maximum loan amount of up to 75% of the property’s value.

Interest Rates for HDFC Rural Housing Loan

Loan Slab Housing loan Interest Rates (% per annum)

Up to 30 Lakh – Women

8.75 to 9.75

Up to 30 Lakh– Others

8.80 to 9.75

30.01 Lakh to 75 Lakh – Women

9.10 to 10.10

30.01 Lakh to 75 Lakh– Others

9.15 to 10.10

75.01 Lakh & above – Women

9.15 to 10.15

75.01 Lakh & above – Others

9.20 to 10.15

Repayment Tenure for HDFC Rural Housing Loan

In case of Adjustable Home Loan Interest Rate, the bank offers maximum repayment tenure of 30 years, while in case of Fixed Rate Home Loan the repayment tenure is confined to a maximum of 20 years.

2. Bank of Baroda Rural Housing Scheme

The Baroda Rural Housing Finance Term Loan is essentially designed to offer financial assistance for–

  • Acquisition of a new dwelling unit
  • Acquisition of old dwelling units (not older than 20 years)
  • Construction of dwelling cum Farm House on Agricultural Land (for residential and storage purposes)
  • Repair, renovation, or extension of an existing house
  • Home Loan Balance Transfer

Eligibility for Bank of Baroda Rural Housing Scheme

This specialised loan product from BoB can be availed by any resident Indian, who is above the age of 21.

Maximum Funding for Bank of Baroda Rural Housing Scheme

The maximum loan amount offered by Bank of Baroda is Rs. 5 Lakh, for the purchase of a residential property, and Rs. 1 Lakh for repair, renovation or extension of an existing dwelling unit. The loan amount should not exceed 3 times the annual income of the borrower.

Repayment Tenure for Bank of Baroda Rural Housing Scheme

BoB offers the loan amount for a maximum of 20 years.

Loan Period Floating Housing Loan Interest Rates (% per annum) Fixed Housing Loan Interest Rates (% per annum)

Up to 5 years

9.25

9.50

Between 5 and 10 years

9.75

10.00

Above 10 years

10.25

10.50

The bank does not levy any fee for part prepayment of the loan. However, if the borrower chooses to prepay the loan in full, a penalty of 2% on the amount prepaid is levied by the bank. 

3. ICICI Bank Saral Rural Housing Loan Scheme

This rural Housing Loan Scheme has been introduced by ICICI Bank for rural borrowers with an intention to-

  • Acquire or construct a residential property in rural areas.
  • Repair, renovate, or extend an existing residential property in rural areas.

The bank readily offers this floating-rate loan to eligible borrowers at the base rate of 9.70%.

Maximum Funding for ICICI Bank Saral Rural Housing Loan Scheme

ICICI Bank offers a maximum loan amount of up to 90% of the market value of the property. An applicant can borrow a loan amount ranging from Rs. 5 Lakh to a maximum of Rs. 15 Lakh under this scheme.

Repayment Tenure for ICICI Bank Saral Rural Housing Loan Scheme

One can opt for a repayment tenure ranging from a minimum of 3 years to a maximum of 20 years under this scheme.

4. SBI Gram Niwas Home Loan Scheme

As the name suggests, this loan scheme was launched by SBI to offer financial assistance to people in rural and semi-urban areas of India, who are looking forwarding to becoming homeowners.

The SBI Gram Niwas Home Loan Scheme is known for the multitude of benefits it offers, which include:

  • Loans for all people residing in towns and villages with a maximum population of 50,000.
  • Loans for renovating, repairing, constructing, and purchasing houses in rural or semi-urban areas.
  • Loans for purchasing plots & construct a shed or a house
  • Loans with zero processing fee

Eligibility for SBI Gram Niwas Home Loan Scheme

  • The age of the applicant should be at least 18 years at the time of applying for the loan, and not more than 70 years when the tenure ends.
  • The applicant should be a citizen of India.

Maximum Funding under SBI Gram Niwas Home Loan Scheme

While there is no minimum loan amount, Rs. 5 Lakh is the maximum loan amount offered by SBI under this scheme.

Repayment under SBI Gram Niwas Home Loan Scheme

The loans under SBI Gram Niwas Scheme come with a repayment period of a maximum of 15 years.

Category Housing Loan Interest Rate (% per annum)

Women

9.40

Others

9.45

These are some of the leading rural Housing Loan schemes available in India that will efficiently meet your Home Loan needs.

 

Also Read: What Is So Special About NTR Housing Scheme?

 

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