Housing Loan for Government Employees

Home Loan For Government Employees - Check Benefits, Eligibility, Documents Required & How To Apply

✓ Home Loan from ₹2 Lakhs To ₹15 Cr ✓ Multiple Lending Partners ✓ Interest Rates Starting @ 8.65%

When it comes to applying for a home loan, government employees enjoy certain privileges. A stable job with a definite salary makes them suitable borrowers. Though getting a home loan for government employees is simple, with so many options available, it can also be overwhelming. Read on.

Home Loan Benefits for Government Employees

  • Flexible Repayment and Affordable EMIs:
    The lending institution offers special home financing programs for government employees. As per the new home loan policy, you can make loan repayments until the age of 75 via EMIs (Equated Monthly Instalments) that can be capped at 50% of your net monthly income. Such privileges can be availed by government employees on immediate payroll as well as retired government employees on pension.

  • Competitive Interest Rates: If you're eligible for a housing loan you can avail a loan at a lower house loan rate interest. However, if you are a government employee you can get a loan at even lower rates, especially female government employees who get up to 0.05% as a concession on the interest rate at which housing loans are provided. Such benefits make it even more favourable for government employees to apply for a home loan.

  • Zero Processing Fees: To qualify for a housing loan for government employees one has to fulfil the laid out house loan eligibility criteria. Eligible loan applicants will get the loan sanctioned faster, without waiting for days for approval. Along with instant loan approvals, some lenders also eliminate the processing fee on the home loan amount. You can avail a loan on nominal rates and convenient loan terms without spending a large part of your savings.

  • Advance Corpus: The House Building Advance (HBA) scheme offers home loans for government employees, central and state government employees for construction of a new home. Previously, government employees were allowed to take an ₹7.5 Lakhs of HBA. However, as per the recent changes in the policy, you can now avail a loan of up to ₹25 Lakhs. The previous limit for HBA of ₹1.8 Lakhs offered for home expansion projects has been increased at least 5-fold to be capped at ₹10 Lakhs.

  • Married Couple Benefits: The government altered the existing norms for home loans and at present married couples that work for the central government are eligible for the scheme. The couple can avail a loan with the House Building Advance (HBA) scheme without any issues.

  • Minimal Paperwork: Home Loans for govt employees require the applicant to submit a small amount of documents online. This facilitates faster approval and disbursal process.

Home Loan Eligibility for Government Employees

The eligibility criteria for smooth application process of housing loan for government employees requires:


  • To be eligible, you must be an Indian citizen

  • Work experience of at least 3 years is required to be eligible

  • Individuals between the age of 23 and 70 are eligible for a housing loan

  • The applicant must have a CIBIL Score of over and above 650

How to Apply for Home Loan for Govt Employees

To enjoy the Home Loan benefits for government employees, you just need to follow the steps mentioned below when applying:


  • Step 1: First, go to the bank’s website and simply click on the ‘Apply Now’ button 

  • Step 2: Then, enter basic contact information on the page that follows. Proceed after entering the One Time Password (OTP) shared with you on your registered mobile number.

  • Step 3: Finally, enter your personal, financial and property details to complete your application process.

Note that post Step 3, the information that you shared with the portal will undergo a verification process. If verified successfully, your loan amount will be credited into your bank account within a week and the rest of the instalments will follow as per the disbursement schedule.

Documents Required for Home Loan for Govt Employees

Mentioned below are the documents required to apply for a house loan for government employees:


1. Individuals Documents

  • Home loan application form completely filled with 3 Passport Size Photos

  • Identity card of your employer

  • Aadhaar Card/Passport/Driving Licence

  • Address Proof: Latest copy of Electricity Bill/Telephone Bill/Water Bill/Gas Bill

2. Property Documents

  • Permission of property construction (If at all applicable)

  • Registered Agreement of Sale/Stamped Agreement for Sale

  • Occupancy Certificate (If the loan is for a ready-to-move property)

  • Share certificate (Applicable for Maharashtra State), Maintenance bill, Electricity bill and Property tax bill

  • Allotment Papers

3. Income Proof for Salaried Applicants

  • Form 16 or your latest salary slip going back three months (For salaried employees)

  • Bank account statements going back six months

  • IT department-acknowledged tax returns of the past 2 years

  • If the applicant has taken any loans in the recent past, loan account statements going back at least 1 year

4. Income Proof for Self-Employed Applicants

  • Current Business Address Proof

  • IT department-acknowledged tax returns of the past 3 years

  • A photocopy of the approved building plan

  • Payment receipts from the builder/beneficiary

Home Loan EMI Calculator

You can check the home loan eligibility for government employees by using a home loan EMI calculator to make an informed decision in managing your finances. The EMI calculator is easily accessible and available online; you can also find it on the website of bank. With a housing loan for govt employees EMI calculator, you can get the estimated amount that needs to be paid towards your loan till the end of your loan tenure. This way, you will be able to understand whether you can afford the monthly repayments and make your financial decisions accordingly. To be able to use the EMI calculator, you just need to fill in the following details and get your results:


  • Loan Amount: The desired loan amount that you wish to avail with the housing loan

  • Loan Tenor (in Years): The desired loan tenure to avail the housing loan

  • Interest Rate: The annual rate of interest applicable to the housing loan

Purchasing a home is one of the major financial investments you may make in your lifetime. Hence, it is advisable to understand all aspects of a home loan before you apply for it. There are numerous financial lending institutions in the financial market that offer housing loans for government employees at discounted rates, especially for government employees. If you are a government employee you can avail of the scheme and use the funds to purchase your dream home. With Bajaj Markets, you can avail a home loan upto ₹2.5 Cr starting at an 8.65% interest rate for up to 30 years of loan tenure with minimal documentation and instant approval.


Purchasing a home is one of the major financial investments you may make in your lifetime. Hence, it is advisable to understand all aspects of a home loan before you apply for it. There are numerous financial lending institutions in the market that offer housing loans at discounted rates, especially on home loans for government employees. If you are a government employee you can avail of the scheme and use the funds to purchase your dream home. Through the Bajaj Markets platform, you can avail of a home loan of up to ₹15 Crores, with an interest rate starting at 8.65%.

FAQs on Home Loans for Govt Employees

  • ✔️Can I get a 100% home loan for government employees?

    As per RBI guidelines, no lender is permitted to offer 100% home financing. You need to make a down payment amounting to 10%-20% of the property’s purchase price. Typically, you can obtain up to 80% housing loan financing for your property.

  • ✔️What is the rule of a home loan?

    • When you apply for a home loan, there are some rules and regulations that should be followed to make the process of borrowing a little easier. These are:

      • Do not delay payments on existing EMIs or credit card dues, to prevent your credit score from being lowered while the home loan sanction is under process.

      • Use a home loan eligibility calculator to check out how much loan amount you can borrow from the company.

      • Maintain a good relationship with your lending company. This will help you with your loan sanctions. One way to do this is to be prompt in responding to any queries from your lender.

      • Larger the down payment, the better for you.

  • ✔️What is the minimum period for home loan for government Employees?

    • Home loans are long term borrowing instruments with repayment tenure of up to 30 years, generally. The tenure offered to you for your loan depends on the loan amount that is sanctioned to you by the lender along with other factors.

  • ✔️How much home loan can a government employee get?

    Salaried government employees with work experience of 3 years can typically get a home loan of up to ₹2.5 Cr and self-employed individuals having a business continuity of 5 years can avail funding usually up to ₹2.5 Cr. Use the Housing Loan Eligibility Calculator to know the maximum loan amount based on your income, tenure, and current obligations.

  • ✔️Why should government employees take a home loan with Bajaj Markets?

    Easy application procedure, minimal paperwork, affordable home loan interest rates, quick loan approvals and fast disbursals are some of the key benefits that you can enjoy when applying for home loans for government employees. 

  • ✔️Do I need collateral to take a Home loan from Bajaj Markets?

    • When you take a home loan, the house itself becomes the collateral. The house acts as a security against the loan amount that you have borrowed.