Home Loan

Complete Guide: How Can You Apply for Rural Housing Loan Online?


Making your dream home a reality is not simple. Housing loans can help you achieve this dream. There are various rural housing loans available at very nominal interest rates, and these loans have many perks. Before applying for a housing loan, you need to understand all the details of the loan. This article will provide you with every detail you need to know when applying for a rural housing loan.

How does a rural housing loan help?

Home purchases in rural and semi-urban areas can be financed by rural housing loans. Rural housing loans assist people in purchasing or building a home because of finances. The loan can be repaid over a period of up to 25 years. You have to pay a nominal interest rate of 11.00% per annum.

What are the pros of a rural housing loan?

  • There is no charge or a very low charge to process the loan application.
  • Some lenders will also provide insurance coverage for the property at no extra cost.
  • The payback schedule is better than that of other loans, making the loan more affordable for many.
  • Most lenders do not charge any penalty for the early closure of a rural housing loan. This is beneficial if you receive a large profit from your business.

What are the interest rates for rural housing loans in 2022?

Loan LimitInterest
A loan of up to 35 lakhs11.00 % p.a. (starting limit)
A loan of between 35 and 70 lakhs 11.00 % p.a. (starting limit)

Know that the interest rates for loans more than ₹70 lakh are different.

How do you use a rural housing loan?

  • It can be used to acquire a home that is under construction, already completed, or for sale in rural and semi-urban locations.
  • It can be used to expand an existing house or property by constructing additional rooms or buildings.
  • It can be used for many home improvements, including new interior and exterior plaster, flooring, paint, etc.
  • It can be used to build property on urban and rural residential lots, whether owned outright or leased.

What are the eligibility criteria for a rural home loan?

The eligibility criteria for a rural home are as follows.

  • You should be 21 years old or older.
  • You should have a stable source of income.
  • If you apply with a co-applicant (i.e., a parent, spouse, friend, or child), you should provide their income proof.
  • You need an NREGA job card.
  • You need to provide a National Population Register letter with your name and photo.
  • Your CIBIL score will also be checked when applying.

Farmers, business owners, independent contractors, salaried workers, and professionals can apply for the loan. 

What documents do you need to provide for a rural housing loan?

You can select an identity proof from the list given below.

  • Applicant’s passport
  • Election proof card
  • UIDAI card (Aadhar)
  • Permanent Account Number (PAN) Card

You need to submit income proof as follows if you are employed.

  • Election proof card
  • Bank statements for the recent six months
  • Salary slips for three months
  • Latest IT returns
  • Form 16

You have to submit income proof as follows if you are self-employed or a business owner.

You also have to provide the documents for the property. The following documents need to be attached.

  • No Objection Certificate (NOC) from the society or the builder
  • Allotment letter or stamped sale agreement
  • Certificate of Possession

What is the tenure of a housing loan?

Loan amounts can vary from INR 5 lakh up to INR 75 lakh for 25 years. Income also determines the interest rate and payback period.

What are the advantages of using a rural housing loan?

  • It is a loan tailored specifically to the needs of farmers in the agricultural, horticultural, plantation, and dairy industries. It will help you acquire either a newly constructed or an existing residence in a rural or urban location.
  • The loan can be used for residential buildings on rural and urban freehold or leasehold land. It can be used for interior and exterior painting, plastering, and tiling. It’s also handy for expanding a home by building new rooms.
  • It can be used as a token when you purchase a residential plot in a rural area. It can also be used to make down payments for any renovation contractors.
  • Many lenders do not ask for collateral.
  • Agriculturists seeking rural housing finance are not required to submit federal income tax returns.
  • Home loans allow you to save a great deal on tax returns. Under Sections 24, 80C of the Income Tax Act, you can claim 1.5 lakhs in tax deduction. It includes the principal amount, registration cost, and stamp duty charges of the housing loan.
  • You can choose an EMI and pay off the loan based on your income and budget. Home loans are quite flexible, making the monthly instalments well within your reach. You can choose a repayment term of 25 years or longer.  


It is very important to have a place of your own. To help you with your dreams, banks and NBFCs are always ready to assist you with quick and easy loans. Housing loans are available at a very nominal fee. The easy process and quick availability will help you own your own home.

These home loans are customized according to the needs of the applicant. Furthermore, these loans have tax benefits that you can claim when you file your income tax returns. These loans are accessible to all. However, application acceptance does depend on a few criteria. Piramal Finance provides housing loans at affordable interest rates. Visit the Piramal Finance website for more details.