AGIF Home Loan
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AGIF Home Loan eligibility & interest rate

Army Group Insurance Fund (AGIF) provides insurance scheme to Indian Army Serving Soldier. Apart from insurance, AGI also runs scholarship scheme in AWES Professional Institute for Army Serving Soldier and Dependent of ESM. Serving Soldier AGIF Home Loan and AGIF Computer Loan can also be availed from Army Group Insurance. In this post, we will talk about eligibility and procedure for AGI home loan.

Eligibility for AGIF Home Loan

  1. AGIF Home Loans can only be availed by Serving Defense Persons.
  2. Defense Person should have at least 2 years of service for AGIF Home Loan.
  3. Reemployed Defense Person is not eligible for AGIF Home Loan.
  4. Defense Person of Army Postal Service and Territorial Army is not eligible.

Now let's talk about what is the procedure for taking home loan and how much home loan can be taken from AGIF.

AGIF loan amount

AGI Home Loan Officer, JCO and other ranks are given according to their rank. The maximum loan limit category wise is given in the table below.

Category Loan Amount 
Officer 80 lac
JCO 35 Lac
ORs 30 lac

AGIF Home Loan Procedure

For AGIF Home Loan the defense person should first get the home loan booklet from AGIF Bhawan which contains all the important home loan related instructions. Home loans can be availed once for complete service for home construction and once for home repairs from AGIF. Important facts related to AGIF Home Loan are given below.

Important information

  1. AGIF Home Loan can be availed once for home construction and once for home repair.
  2. For this Defense Person is not required to deposit any processing fee.
  3. The maximum time taken for loan repayment is 20 years. The loan installation should be completed by 6 months prior to retirement as per the rank at the time of taking the loan.
  4. A maximum loan of Rs 15 lakh is given for 5 years for home repairs.
  5. A loan taken for home purchase or construction attracts an interest rate of 7.15% and a second loan for home renovation attracts an interest rate of 8.15%. The interest rate varies according to the bank policies.
  6. Part payment of AGIF home loan can also be done. If you have the money and want to pay off the AGIF Home Loan, then 20% or more of the loan amount can be part paid. Part payment can be made only twice.
  7. If the documents of the applicant are complete then it takes only 3 weeks for the loan sanction.

Now let's talk about under which conditions Defense Person can apply for AGIF Home Loan.

AGIF Home Loan Term and Condition

  1. Home loan can be taken from AGIF for buying a flat or house from AWHO.
  2. A home loan can be taken for buying a flat or a house under the Self Financing Scheme by the Housing Development Authority of the Central and State Governments.
  3. AGIF Home Loan can also be taken for buying flats or havoc from registered housing cooperative societies, registered private colonies and registered builders.
  4. Defense Persons can also get a housing loan under this scheme for buying a house that is less than 10 years old.
  5. Defense person can also get loan for construction of house on their plot.
  6. AGIF loan can also be taken for home repairs.

Now let's talk about the conditions under which Army Persons can not take Home Loan.

  1. Home loan cannot be taken to buy land or plot.
  2. If the serving soldier has taken home loan from AGIF once and wants to take home loan again for building a flat or house, then he also does not get AGIF home loan.
  3. If the purpose of buying a flat is commercial like buying a house and giving it on rent, then AGIF does not give home loan even in that condition.
  4. AGIF Home Loan is also not available for repayment of loan taken from any bank or other source.
  5. Home loan is also not available for the house bought or sold under Power of Attorney.
  6. This home loan scheme is also not applicable for buying a house outside India.
  7. If the plot or land on which the house is to be constructed is the joint owner of the defense person along with other members of the house like mother, father, brother, sister, son etc., then AGIF does not give home loan in that condition.
  8. AGIF does not offer home loan facility even for houses constructed in Laldora and mutation.

AGIF gives home loan in installments at the time of construction of house or flat. When an army person constructs the house himself, he is given a home loan in 3 installments. First installation is given at the time of foundation, second installation is given at the time of roofing and third installation is given for plaster and rest of the work.

When a defense person buys a house or flat from a builder, the home loan is given in 5 installments instead of 3 instalments.

AGIF Home Loan Interest

The interest rate of AGIF home loan is lower as compared to other home loans and is directly deducted from the salary of the soldier. For AGIF Home Building Advance, the jawan has to pay 7.15% interest for construction or purchase of a house and 8.15% on the loan taken for home repair

The officer has to pay 8.15% interest on the home loan.

Disclaimer – foujiadda app is not the official website of Indian Army nor has any relation with defense website. Therefore, do not ask any information related to AGIF Home Loan claim here and contact the customer of AGIF.

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