The army people spend much of their lives defending our country from various dangers. Most of the time, they stay away from their families and they miss so many special movements and festivals during their period of service.
They would be able to accomplish their ambitions and spend quality time with their family by purchasing a home in Haryana with the financial support of the AGI home loan plan.
The Army Group Insurance Fund (AIGF) collaborates with public and private banks to offer Army Group Insurance AGI home loans to service persons. Some Banks promote these home loan schemes differently but the procedure of application remains the same. These types of loans come with different AGIF interest rates compared to other loan charges.
Source: Indian Army
What is the meaning of AGI loans?
The Army Group Insurance Fund (AGI) provides House Building Loan advances to its members who are serving their duties and are active in services, which is repayable by the date of retirement. The AGI home loan is provided to the members of the Indian Army, Navy, and Air Force. It is basically for the army personnel to provide them loans for the purchase of their houses or to construct or furnish their existing home or new homes. This loan is offered at a competitive interest rate and has more flexible terms than a normal debt loan from banks.
Application process documents qualification
The qualification of the loan is determined by the AGIF(Army Group Insurance Fund) and is based on factors such as Ranks, Length of Services, and applicants’ credit history. To apply for a home loan, the military person must apply along with the supporting documents to the AGIF.
The AGI home loan can be used to finance the purchase of a new home or construct an existing one. The AIGF fixes the loan amount based on the applicant’s financial situation and the value of the property that the person has purchased.
Repayment of the AGI home loan is done through monthly installments, with this, the whole amount of the the loan is paid by the person over several years. The term of the loan, including the repayment period and the interest rates, will be determined by the AGIF based on the applicant’s financial position.
It is very important to note that the AGIF home loan is only available to members of the Indian Military and is not available or open to civilians.
Eligibility criteria for AGI home loan
To take advantage of the AGI home loan one should follow these rules:
- Applicant should be Serving in the Army.
- Applicant should have completed a minimum of 2 years of service in the army.
- Retired or Ex-service person is not eligible.
- Rehired Ex-serviceman in the Army is not eligible.
- Territorial Army (TA) and Army Postal Service (APS) serving people are not eligible.
AGI home loan is available to army personnel for the following purposes.
- Self-construction building on its plot for living purposes.
- Purchase Resale House.
- Purchase of flats, and houses from sellers, builders, societies, etc.
- Repairing and renovating of own house.
AGI home loan amount limit
For the AGI Home loan, the loan amount is fixed as per post, and ranks, seeing that only one will get the loan amount that is sanctioned as per his post and ranks.
For officers loan limit is set
For officer posts in the Indian army, the amount limit is set up to 80 Lakhs. No more than that amount will be sanctioned for an AGI home loan scheme as per the rules that are set for the home loans.
For junior commissioned officers (JCOs) the loan limit is set
The limit for purchasing property in the best cities of India for a person on a Junior Commissioned Officer post in the Indian army is 35 lakhs. According to the rules, no more than the amount would be sanctioned for the AGI home loan plan.
For other ranks (OR) loan limit is set
Other ranks in the army can acquire loans for a home up to 30 lakhs, which is the same as the AGI Home Loan Scheme.
To obtain the best guidance on luxury homes at the most competitive prices, army officials interested in purchasing a home via the Agi home loan scheme should speak with a PropertyCloud property consultant.
Documents Required for AGI home loan
The documents required for the AGI home loan are:
- Photograph of flats in three stages of the house that is Base, Panther, and completion of the house.
- Plan of the building (SKETCH OR BLUEPRINT) that is certified and approved by the architect and by the Municipality or Panchayat.
- Conversion of a plot to residential purposes.
- NOC on the Plot is mandatory.
- The sales deed of the plot is mandatory
- Average Cost Plan of the Building or House.
- Proof of the other sources of funding for construction or purchase.
- The House or flat should not be older than 10 years.
- For the Construction of the house, a person should be the sole proprietor, which means there should be no joint owner with the person on the property.
The loan is (NOT) available for the following purpose.
The AGI Home is not available in some cases, so one can’t buy land, or person can’t add a token amount to the loan amount, a person can’t add the loan amount that he has taken from other banks in the AGI home loan, etc, and also some other points are also there, those points I am explaining below:
Purchase of plot or land.
The AGI home loan will not apply to a person if one is buying a plot or land because one can do anything after buying, one can do business of agriculture on land by using the land to grow vegetables and sell or build homes and sell to others That is why one can’t get a loan on the purchase of a plot or land.
Payment of registration and token money.
One can’t get the AGI home loan on the advance that has been paid to the seller, because as per the rule, one can’t put that amount in the loan amount.
Purchases of houses on a higher price basis.
As per the guidelines issued by the AGIF, one should submit the average cost plan in the set of
documents so that one will get the loan on the actual amount, not on the amount that has
been bid higher than the amount that has been submitted in the cost plan.
Advance amount taken from any other banks or institutes.
If a similar amount or loan is taken earlier from any other banks and then afterward is asking AGI home loan then the loan will not be given as per the rules and guidelines.
Construction of home for commercial purpose
One cannot receive an AGI home loan unless one is building a house and turning it into a business and using it for business purposes.
Improvement in existing property
If modifications are made to an existing property that deviates from the blueprint, AGI home loans will not be granted.
Outside India purchase.
AGI house loans are not available to Indian citizens who are serving in the Indian Army as well as buying real estate abroad.
Joint owner in blood relation
Buying a property and adding a family member’s name to it, even if they are not blood relatives, will prevent you from being approved for an AGI home loan.
Purchasing property older than 10 Years
If an army person purchases any type of property in real estate via the AGI house loan scheme, the property cannot be older than 10 years, if it is, they will not be eligible for an AGI home loan.
How to go for an AGI home loan
Important Points one should know before applying:
- Contact AGIF’s Main Office which is located in Delhi, visit there, and collect the application brochure.
- Keep essential documents ready in hand and submit them as per the instructions.
- Can get an AIG Home loan, or construction loan once in the period of service.
- Can get a repair loan for a home once only in the period of service.
- There is no need to pay any processing charges as per the rules and guidelines.
- Can take a maximum of 20 years for repayment of loans.
- Repayment should be done before the 6 months of retirement on whatever post or rank is.
- For the Repair loan, the maximum loan amount is 15 Lakhs and should repay that amount in 5 years only.
- Part Payment can be made a maximum of two parts and a minimum of 20% at a time.
- The loan amount will be paid out in three parts of the construction of the house, at the time of base, roof, and plastering or finishing.
Rate of interest for AGI home loan
The rate of interest for AGI home loans is typically competitive and designed to make homeownership affordable for army officials and other eligible applicants. It may fluctuate depending on market conditions and other factors.
For Purchase
For the purchase of property or house, the rate of interest will be 7.15% pa. This can also be changed as per the rate of RBI rules and regulations.
For repair of homes
Repairing or making changes in an existing home, the rate of interest on the loan will be 8.15 pa. For the finest guidance on making real estate investments, consult a home loan specialist at PropertyCloud.
Where to go for AGI home loan
Postal Address – Army Group Insurance Fund
AGI Bhawan, Rao Tula Ram Marg
Post Bag No 14, PO-Vasant Vihar
New Delhi – 110057
E-mail – adagif@gmail.com
AGI Home Loans- An initiative for our army’s efforts
AGI home loans help soldiers purchase a home anywhere in India’s smart cities for the betterment of their post-retirement prospects. These loans are exclusively available to active and retired military personnel who are performing their duties for the country.
AGI Home Loans have lower interest rates than bank loans and do not require any collateral from servicemen. The loan amounts are determined by the servicemen’s ranks and positions.
So go ahead and buy your dream home now!
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