HomeLoans From AFGIS House Building Loan HBL

Loans From AFGIS House Building Loan HBL

Documents Required



Before applying for HBL from AFGIS, applicants must read the policy governing grant of HBL given in Chapter 10 of IAP 3601 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 5 Years 5 Years 5 Years
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 6 Months 2 Years 2 Years

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 lacs Amount of HBL sanctionable is subject to the repaying capacity of the applicant
For extension/renovation of house/flat Rs 30 Lacs
For Purchase of plot Rs 40 Lacs

Rate of interest

Category Upto 7 Lacs Above 60 Lacs
Officers/Airmen 8.35 % pa
NCs(E) 8 % pa 8.35 % 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 installments then contribution will be recovered from the amount of Installments.
  • 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 (1 Lac of HBL )
Officers Aitmen/NCs(E)
1 319 275
2 484 410
3 651 544
4 819 678
5 988 813
6 1158 950
7 1332 1089
8 1510 1231
9 1694 1371
10 1884 1514
11 2080* 1658**
12 2287 1804
13 2503 1954
14 2725 2109
15 2951 2268
16 3179 2432
17 3407 2605
18 3634 2785
19 3860 2970
20 4084 3158
21 4306 3384
22 4511 3536
23 4707 3723
24 4897 3909
25 5086 4094

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 installments (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 :

Officers Rs. 12480/- (6,00,000/1,00,000) X 2080*
Airmen/NCs(E) Rs. 9948/- (6,00,000/1,00,000) X1658**

Repayment of HBL

The repayment period for different categories is appended below :

  • The principal amount and interest is recoverable in max of 300 EMIs.   The principal amount and interest of second and subsequent HBL would be recoverable in max of 240 installments.
  • In case of purchase of residential plot, the HBL is recoverable in max 180 EMIs and for renovation/extension of house/flat max of 240 EMIs including the EMIs paid for the existing loan.

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 may be sanctioned to those members who have liquidated the HBL taken earlier in full and have the repaying capacity and meet all other eligibility and other terms and conditions.