Home Loan for Village Area

Rural Home Loans

Check Current Interest Rates for Rural Housing Loans & Eligibility Criteria

✓ Home Loan from ₹5 Lakhs To ₹5 Cr ✓ Multiple Lending Partners ✓ Attractive Interest Rates

Home is where your heart is! Everyone wishes to have a house they can call their own. People from rural areas find it difficult to avail of home loans with affordable interest rates and flexible tenures. Here is where rural home loans arrive with help. Rural home loans help you purchase a new or under construction or existing residential property or a plot in a rural area.

The Government of India’s objective - ‘Affordable Housing for All’- is implemented through these rural housing loans. These rural home loans have special benefits like flexible eligibility criteria, near to zero processing fees, and minimal documentation. Home loans for rural areas have interest rates ranging from 6.90% to 14% per annum. The maximum repayment tenure of the loan can extend up to 30 years, and the loan amounts can range from Rs. 2 Lakh to Rs. 1 Crore.

Let us check out the details of the rural home loans here.

Rural Housing Loan Scheme Interest Rate 2022

Here is a comparison of interest rates offered by various banks and NBFCs on home loans for rural properties. 

Financial Institution

Rural Home Loan Interest Rate

(Per Annum)

Bajaj Housing Finance Limited

Starts at 7.10%

ICICI Bank

Starts at 7.60%

Union Bank of India

Starts at 7.40%

PNB Housing Finance Limited

Starts at 7.50%

LIC Housing Finance Limited

Starts at 7.55%

Axis Bank

Starts at 7.90% 

State Bank of India

Starts at 6.80%

HDFC Rural Housing Finance

Starts at 7.65%

RBL Bank

Starts at 8.70%

Yes Bank

Starts at 8.95%

Disclaimer: Interest rates are subject to change as per the financial institution’s discretion.

Eligibility Criteria for Rural Home Loan

To become eligible for a rural home loan, you have to fulfil certain eligibility criteria. Rural housing eligibility criteria are mentioned below.

 

  • Nationality: You must be an Indian national.

  • Age limit: You must be between 21 and 60 years of age to apply for a rural home loan.

  • Income: You must have a steady and regular source of income.

  • Address: You must be residing in India and should be able to provide address proof.

  • Others: You must have an individual current or savings bank account in India.

Agriculturalists, self-employed, entrepreneurs, salaried, and professionals are eligible to apply for rural housing loans. 

Documentation for Rural Home Loan

Here is a list of the important home loan documents required to apply for the village area:

Identity Proof

Passport, PAN Card, Driving License, Voter's ID Card, Aadhaar Card, Ration card

Address Proof

Passport, Aadhaar card, Voter ID, Driving licence, Property documents, Ration card, Lease/rent agreement and last three months’ utility bills

Income Proof

Income tax returns, last three months’ salary slips, Form 16 and Bank statements of the previous six months.

Features and Benefits of Rural Home Loan

Check out a few of the features and benefits of rural home loans here.

 

  • Minimal processing fees: The processing fees for the rural home loans are zero or very minimal compared to other loans.

  • Longer repayment tenures: Tenures as long as 30 years are available and special concession is given for agriculturists.

  • Lower interest rates: Attractive interest rates range from 6.90% to 14% per annum.

  • Available for everyone: Loans are available for the self-employed and salaried individuals who are purchasing a new or under construction or existing residential property in their village.

  • Zero prepayment charges: No prepayment charges are levied for rural home loans.

  • No hidden charges: All charges related to the loan are informed during the loan application period itself.

  • Moratorium period: Some banks offer a moratorium period of up to 18 months for these loans.

  • Insurance cover: Some banks offer complimentary insurance cover for rural housing loans.

  • Door-to-door service: Certain banks offer a facility of door-to-door service in case of rural home loans and personally assist you with the whole procedure.

  • Special concession for agriculturists: No mandatory requirement of Income Tax Returns (ITR) from Agriculturists applying for Home Loan.

Rural Housing Loans FAQs

  • ✔️What is a rural plot loan?

    Loans provided by financial institutions like Banks and NBFCs for the self-employed and salaried individuals who are purchasing a new plot in a rural area is called rural plot loan. These rural home loans have special benefits like flexible eligibility criteria, near to zero processing fees, and minimal documentation. 

    Home loans for rural areas have interest rates ranging from 6.90% to 14% per annum. The maximum repayment tenure of the loan can extend up to 30 years, and the loan amounts can range from Rs. 2 Lakhs to Rs. 1 Crore.

  • ✔️Which bank is best for home loans for rural areas?

    The perspective of being the best varies from person to person. Different financial institutions offer different interest rates, repayment tenures, and loan amounts. For rural home loans, always choose the bank which offers more loan amounts at a lower interest rate. 

    Certain banks offer various other benefits like complimentary insurance cover, moratorium period, special concessions, etc. Consider all these factors before zeroing down on one.

  • ✔️Can I get a home loan on agricultural land?

    Yes, you can use agricultural land as collateral to avail a home loan. Terms and conditions are applicable in this scenario. The land should be in the farmer’s name, and he should apply for a home loan from a bank or a financial institution.