Housing Loans

Affordable Housing Loan -Rural [AHL- R]



  1. Purchase of Ready built House/Flat/ flat under construction
  2. Construction of House.
  3. Undertaking extension/repairs/renovation/upgradation




Areas covered: Any other areas notfalling under the Statutory Town definition of Pradhan Mantri Awas Yojana-Urban for the following beneficiaries:

1.Individuals belonging to weaker section as defined in the RBI’s priority
sector guidelines* and/ or
2.Annual household income not exceeding Rs.3 lacs and/or
3.Women – Property in their names, either singly or jointly

* which includes scheduled caste and scheduled tribes, Minority communities as may be notified by Govt. of India from time to time, persons with disabilities


Quantum of loan

75% to 85% of the project cost subject to repayment capacity and sufficient net take home income


Repayment Period

  1. For salaried individuals - 5 years to 30 years.
  2. For professionals - 5 years to 25 years.
  3. For NRI - 5 years to 15 years.
  4. For business class - 5 years to 20 years

*Maximum term up to 30 years subject to maximum age of 70 years of applicants


Rate of interest

At present, loan to be sanctioned with ROI as applicable to IHL (201) product and on receipt of refinance from NHB, ROI as mentioned below would be charged prospectively:

8.25 % p a for S1 category              : Fixed  for 7 years  from the date of receipt
of refinance from NHB                      

8.40 % p a for S2+ and S2 category : Fixed for 7 years from the date of receipt
of refinance from NHB

Customers with S3 risk rating are not eligible for loan under the scheme




In the case of purchase of house / flat, on the date of registration, and in the case of construction / repairs / renovation / up-gradation / extension, as per the progress of work.


Other conditions

  1. The scheme is applicable to individual housing loans sanctioned on or after 01/04/2017 and falling under rural category.


  1. ROI is fixed for an initial period of 7 years. ROI would automatically shall be converted to variable interest rate for the respective risk category with annual resetting clause after the expiry of fixed tenure of 7 years.  
  1. The Company reserves the right to continue to charge interest rate as applicable individual housing loan if refinance is not received from NHB.


  1. Loans granted under commercial housing loans (CHL) are not eligible for refinance.
  1. In respect of takeover of loans from other institutions, if the loan is already covered /encumbered to NHB under Affordable Housing Fund, then such loans are not eligible under the scheme. 


Takeover of eligible loan accounts are permitted if such loans are sanctioned and disbursed at other banks /HFCs after 01.4.2017 and the sanction letter and ledger sheet clearly indicate that refinance has not been claimed under the NHB refinance scheme


  1. Pre closure charges (during the fixed tenure period) :

2% plus applicable GST where the loan accounts are on fixed interest rate in case the loans are taken over by other banks/financial institutions. However, no pre closure charges will be collected if the borrowers close the loans out of their own funds.


Security for the loan

Equitable mortgage of the residential property being financed.


Collateral security

Depends up on case to case basis


Stamp duty

As laid down in The State Stamp Act of the respective state government.

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