Rural Home Loan

Rural Housing Loan Scheme Interest Rate 2023

Compare: Home Loan Interest Rate all Banks

Eligibility Criteria for Rural Home Loan

The following are the eligibility criteria for rural home loans:

• Indian residents
• Age 21 years and above
• Steady and regular income
• Single individual applicants or joint applicants with other family members such as a parent, spouse, or children who have a steady source of income
• Agriculturalists, entrepreneurs, self-employed, salaried, and professionals are eligible
• Check your Home Loan Eligibility

Documentation for Rural Home Loan

The following documents are required to be submitted at the time of loan application:

• Proof of income and proof of identity such as:
  1. Valid passport
  2. Voter ID
  3. Aadhar card
  4. PAN Card
  5. Other KYC documents as required by the bank
• Agriculturalists must submit income proof such as:
  1. Last 6 months’ bank statements
  2. Copy of title documents of agricultural land as a proof of land holding
  3. Copies of title documents of agricultural land as a proof of crops being cultivated
• Salaried applicants must submit income proof such as:
  1. PAN card
  2. Last 6 months bank statement
  3. Last 3 months’ salary slips
  4. Latest IT returns
  5. Form 16
• Self-employed applicants must submit income proof such as:
  1. PAN Card
  2. IT assessment for the last 3 years
  3. Profit & Loss statement for the business
  4. Account statements for business and self

Documents required may vary depending on the bank.

Features and Benefits of Rural Home Loan:

• Zero to minimal processing fee
• Concession in interest rate
• Complimentary insurance cover is offered by some banks
• Loan margin requirements are lower, varying from 10% to 20%
• Longer repayment tenures
• More flexible repayment options
• Personalized documentation assistance
• Door-to-door servicing of loans
• Zero prepayment penalty
• Moratorium period of up to 18 months offered by some banks

Loan Tenure and Quantum:

• Flexible tenure options between 3 to 20 years
• Quantum of loan ranges from Rs.5 lakh to Rs.15 lakh depending on income, repayment capacity, and project cost.