HomeLoans From AFGIS House Building Loan HBL

Loans From AFGIS House Building Loan HBL

Documents Required


  • Application Form Cost
  • Loan Amount Admissible, No of Instalments and Rate of Interest applicable

    Before applying for HBL from AFGIS, applicants must read the policy governing grant of HBL given in IAP 3601 Appendix 'J' and the AFGIS website (afgis.iaf.in) and AFNET. Applicants are also advised to consult Unit Adjutant / SAO.


    Category Officers Airmen NCs(E)
    A) HBL for self-construction of a house or for purchase of residential plot or for purchase of house/flat from a pvt builder or for purchase of an existing house or for repayment of house loan taken from bank/financial institution or for renovation /extension of an existing house/flat After confirmation of commission After completion of two years of actual service After completion of two years of actual service
    B) HBL for acquiring residential plot/ flat/house/from AFNHB /AWHO/IRWO or other housing boards or for purchase of residential plot from Central/State govt/ other civil authorities like DDA/BDA/JDA After confirmation of commission After completion of two years of actual service After completion of two years of actual service

    Quantum of loan

    Category of
    Purpose of HBL Max Amount Remarks
    Officers (PC/SSC) Airmen/ NCs (E) For purchase/construction of house/flat Rs 60 lakhs Amount of HBL sanctionable is subject to the repaying capacity of the applicant
    For extension/renovation of house/flat Rs 30 Lakh
    For Purchase of plot Rs 40 Lakh

    Rate of interest

    Category Upto 7 Lakhs(Amt in Rs) Above 60 Lakhs(Amt in Rs)
    Officers/Airmen 7.95% pa
    NCs(E) 7.6 % pa 7.95 % pa

    Note: 2nd & subsequent HBL and HBL for renovation/extension of house/flat etc : 8.35 %pa

    Repaying Capacity

    The quantum of HBL admissible to the applicant would depend on his/her repaying capacity which is determined by ascertaining that the total deductions (including the anticipated EMI towards the HBL that is now being applied for) in the applicant’s IRLA does not exceed 80% of the gross emoluments reflected in the latest monthly pay slip.

    Processing Fees

    Nil. (Processing Fee has been waived off wef 01 Oct 17)

    Loan Insurance

    • HBL availed from AFGIS has to be mandatorily insured by payment of necessary contribution (premium) by the loanee (refer chart for contribution)
    • Loan insurance is compulsory for all types of hbl.
    • The insurance cover to the loan is provided upto the last EMI (installment).
    • If the loan is disbursed in one lumpsum, then one time non-refundable contribution towards loan insurance will be recovered from loan amount.
    • In case the loan is disbursed in instalments then contribution will be recovered from the amount of Instalments.
    • In case an individual opts to repay the loan in higher number of installments, additional amount of contribution toward loan insurance will be recovered for enhanced period of repayment of loan.
    • In the event of death of loanee, the principal outstanding as on the first day of the month in which death occurs will be adjusted and no loan amount will be recovered from the death benefits payable to the nominee from AFGIS.
    • The year wise break down of one time non-refundable contribution for Rs.1,00,000/- of house loan is as follows :
    Term(Years) Amt of Contribution ₹ 8652/- (6,00,000/1,00,000) X 1442*
    Amount of Contribution (Per Lakh) (wef 01 Jan 2018)
    1 202
    2 389
    3 548
    4 683
    5 809
    6 926
    7 1035
    8 1137
    9 1239
    10 1345
    11 *1442
    12 1533
    13 1618
    14 1697
    15 1778
    16 1860
    17 1944
    18 2031
    19 2119
    20 2210
    21 2302
    22 2397
    23 2494
    24 2593
    25 2694

    Note 1 : One time non-refundable contribution will be calculated for amount in  multiples of lacs and the tenure (no of years) of the loan. Fraction of a year will be counted as one full year.


    If an individual has been sanctioned a loan of Rs. 5.93 Lac in 125 instalments (i.e. 10 years 5 months), non refundable contribution will be charged for Rs. 6 Lac in 132 installments (i.e. 11 years)

    HBL sanctioned : Rs. 6 lacs

    Tenure of Repayment : 125 EMIs

    Calculation :

    Amount on which premium is calculated : Rs. 6 lacs
    Tenure of Repayment : 11 years ( 10 years 5 months)

    Amount of contribution :

    Rs. 8652/- (6,00,000/1,00,000) X 1442*

    Repayment of HBL

    The principal amount and interest is recoverable in max of 300 EMIs. The numbers of instalments are subject to the period of service left to recover the total instalments.

    Penal Rate Of Interest

    15% pa penal rate of interest is chargeable for non-submission of documents and non-compliance of stipulated policy & rules.

    Second/ Additional Loan from AFGIS

    Second and subsequent/additional HBL is permissible on second property concurrently without liquidating the previous HB loan outstanding, if any, subject to repaying capicity and NE benefits. Total loan sanctioned should not exceed maximum ceiling.