Rural Home Loans

Check Current Interest Rates for Rural Housing Loans & Eligibility Criteria

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✓ Home Loan from ₹2 Lakhs to ₹15 Crores ✓ Interest Rates Starting @ 8.50% Apply Now

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 2024

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 8.55%
ICICI Bank	Starts at 9.00%
Union Bank of India	Starts at 8.50%
PNB Housing Finance Limited	Starts at 8.50%
LIC Housing Finance Limited	Starts at 8.65%
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.

Disclaimer

The information and suggestions provided by BFDL hereinabove is related to the Non-Partnered Banks/ NBFCs and is just for the purpose of information and under no circumstances the information provided hereinabove is intended to be source of advice or recommending any financial advice or endorsement of any sort.

The information including interest rates or fees, loan amount and other charges with regard to any product, provided on this website is gathered through publicly available sources over the internet and is considered as accurate and reliable to the best of our knowledge. BFDL disclaims any responsibility or liability regarding inaccuracies, omissions, mistakes etc. as well as offers by the Non-Partnered Banks or NBFCs. The use of information set out is entirely at the User’s own risk and User should exercise due care prior taking of any decision, on the basis of information mentioned hereinabove. You are advised to visit/ contact the respective Banks/ NBFCs to verify the information before making any application or opening an account. Further, BFDL does not undertake any responsibility or liability to update this information. YOU ARE SOLELY RESPONSIBLE FOR ANY LIABILITY OR DAMAGE YOU INCUR THROUGH ACCESS TO OR USE OF THE SITE OR SUCH INFORMATION OR MATERIALS EXCEPT WHERE THE LAWS AND REGULATIONS OF A PARTICULAR JURISDICTION CONCERNING WARRANTIES CANNOT BE WAIVED. Additionally, display of any trademarks, tradenames, logo and other subject matters of intellectual property owners. Display of such Intellectual Property along with the related product information does not imply BFDL’s partnership with the owner of the Intellectual Property of such products.

Home Loan by Banks & HFCs

Home Loan by Amounts & Salary

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.