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India Govt. offers home loans to its staff

February24/ 2015
India Govt. offers home loans to its staff

MUMBAI: The state government has offered its 19 lakh employees home loans between Rs 20 and 50 lakh, depending upon the category of the city or district they work in. The state finance ministry has also made available loans between Rs 3 and 15 lakh for renovation of employees’ existing properties, depending upon his/her salary structure.

According to government the sixth pay commission has already fixed the categories of cities, depending upon the prevailing rates of properties like independent houses, flats and plots. The only pre-condition to avail such a benefit is the completion of five years in the state government service. Those employees whose tenure left in government service is less than five years will not be able to opt for the loan facility, it pointed out further.

“In cities falling in the ‘X’ category, the government has offered principal home loan up to Rs 50 lakh, while in ‘Y’ category cities the same will be up to Rs 30 lakh. For remaining areas, it is around Rs 20 lakh,” a state government release said.

Recently, the government announced a hike in the salary from the current month by increasing the dearness allowance from earlier 100% to now 107% with retrospective effect. The state has also decided to continue with the family pension scheme for widows who have remarried. The state has also allowed such a facility to the parents of deceased unmarried employees.

Any property to be bought using the government loan facility should be in the name of the one who is opting for such a loan and the interest rates in that year would be applicable.

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