HOUSE BUILDING LOAN
TERMS & CONDITIONS

IMPORTANT NOTE

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

Eligibility

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
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

Quantum of Loan

Category Of Member Purpose of HBL Max Amount ( ) Remarks
Officers (PC/SSC) Airmen/ NCs (E) For purchase/construction of house/flat 75 Lakh Amount of HBL sanctionable is subject to the repaying capacity of the applicant
For extension/renovation of house/flat  30 Lakh
For purchase of plot 40 Lakh

Rate of Interest

Category Upto 10 Lakh Upto 75 Lakh Addl Loan
Officers/ Airmen 7.10% pa 2nd & subsequent HBL and HBL for renovation/extension of house/flat, etc @ 7.10 % pa
NCs (E) 7.0% pa 7.10% 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 wef 01 Oct2017).

Discipline Cases

  • Not eligible if two or more (red ink) entries and five years have not lapsed from the last entry and/or disciplinary proceedings (SOE/GCM/DCM etc) are initiated/ in progress.

Loan Insurance

  • HBL availed from AFGIS has to be mandatorily insured by payment of necessary contribution (premium) by the loanee.

Repayment of HBL

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

Pre-payment/Refund of loan

  • Re-fixation of EMIs/refund of loan is allowed once in a financial year.
  • Lumpsum refund of the outstanding loan in full or part is permissible. The minimum amount of partial refund is Rs 1,00,000/-, Rs 50,000/- and Rs 25,000/- for officers, airmen and NCs(E) respectively.
  • Such refund in full must preferably be made before 20th of a particular month.
  • Details of such refund, of made by e-remittance, must be immediately communicated to AFGIS.
  • Demand for recovery of outstanding loan iro members proceeding on discharge/retirement is forwarded to AFCAO/Dte of AV one year/six months (Airmen/Officers) prior to NE date. Hence, members proceeding on discharge should check with AFGIS before refunding the outstanding loan. A demand for recovery of outstanding loan, once raised, is final. Excess amount, if any, will be refunded to members when the amount is actually recieved from AFCAO/Dte of AV.

Penal Rate Of Interest

  • 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 availed concurrently with the first HBL. Maximum loan amount admissible is subject to the repaying capacity and NE Benefits. 

Pradhan Mantri Awas Yojna

  • Government is providing interest subsidy on house loans subject to eligibility criteria (i.e. Household income and Size of house) under Pradhan Mantri Awas Yojna. For details visit www.pmaymis.gov.in.

HBL Documents

Note : All the legal papers in the application form are to be used as-it-is and not to be retyped or rephrased
Click on the categories listed below to view the list of required documents/forms.
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous three months HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8 A&B) HBL/08
9. Tripartite Agreement in two Copies (Signed by the Board with Rubber Stamp) HBL/09
10. Allotment letter in original (Full set)  
11. Proof of 5% payment  
12. Copy of Govt HBA Sanction Letter (if any) alongwith the second charge permission in favour of AFGIS.  
13. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
14 Contingent Bill HBL/12
Note. Original copy of possession letter and original Regd. sale deed for value equivalent or more than loan amount duly registered in the name of the loanee of jointly with spouse is to be forwarded to the society within 6 months of possession of the flat.
Sl No Document/ Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous three months HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8 A&B) HBL/08
9. Tripartite Agreement in two Copies (Signed by the Board with Rubber Stamp) HBL/09
10 Allotment letter in original (Full set)  
11. Proof of 5% payment  
12. Copy of Govt HBA Sanction Letter (if any) along with the second charge permission in favour of AFGIS.  
13. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
14 Contingent Bill HBL/12
Note. Original copy of possession letter and original Regd. sale deed for value equivalent or more than loan amount is to be forwarded to the society within 6 months of possession of the flat.
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous
three months
HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8A & B) HBL/08
9. Tripartite Agreement in two Copies (Signed by the Board with Rubber Stamp) HBL/09
10. Allotment letter in original  
11. Proof of 5% payment  
12. Copy of Registration Certificate of Co Housing Society/Builder from registrar of companies or registrar of firms  
13. Copy of permission from competent authority (State/Central Govt) to the Co Housing Society/Builder to built House/Flat.  
14. Development agreement between the builder and the land owner in case both are different parties  
15. No Objection Certificate to Mortgage the House / Flat in favour of AFGIS from the Co Housing Society/Builder in their letter head (specimen as per Annexure I)  
16. Non-Encumbrance Certificate from the Co Housing Society/Builder in their letter head (specimen as per Annexure I)  
17. Copy of Govt HBA sanction letter (if any) along with second charge permission in favour of AFGIS as per Annexure II.  
18. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
19. Contingent Bill with bank details of the Co-operative Society/Private Builder. HBL/12
Note. (a) Kindly note that under the 'Type of HBL' of Co-operative Group Housing Society two additional documents i.e. the original share certificate and Bye laws of Society are to be submitted along with the above mentioned documents

(b) Regd. sale deed for value equivalent or more than loan amount duly registered in the name of loanee or jointly with spouse is to be forwarded to the society within 6 months of possession of the flat. Sale deed for plot & sale agreement for construction will not be treated as sale deed for loan amount.

(c) Loan will be sanctioned on the basic cost of the flat only, ie., parking and other Misc charges will not be included in the basic cost.

(d) Registered builder is builder registered under Co. Act, 1956 or firm of builders with registrar of firms under the Indian partnership Act, 1932. Individual or sole proprietorship firms involved in the business of construction & selling houses/flats are not considered as registered builders.
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous
three months
HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8 A&B) HBL/08
9. Registered sale agreement with builder in original.  
10. Completion Certificate from Municipal Corporation  
11. NEC in favour of seller from sub registrar office  
12. NOC on builder's letter head (specimen as per Annexure I)  
13. Copy of Govt HBA sanction letter (if any) alongwith second charge permission in favour of AFGIS.  
14. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
15.

Contingent Bill with bank details (cancelled cheque to be attached).

HBL/12
Note. (a) Regd. sale deed for value equivalent or more than loan amount duly registered in the name of the loanee or jointly with spouse is to be forwarded to the society within 6 months of possession of the flat. Sale deed for plot & sale agreement for construction will not be treated as sale deed for loan amount.

(b) Loan will be sanctioned on the basic cost of the flat only, ie., parking and other Misc charges will not be included in the basic cost.
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous
three months
HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8 A&B) HBL/08
9. Copy of sale deed / clear title deed in favour of the owner  
10. Preliminary valuation by Govt approved valuer  
11. Latest Non encumbrance certificate from the Sub registrar office with present owners name (not more than two months old)  
12. Agreement of sale between vendor and applicant. HBL/11
13. Payment proof of 5% of total cost of house  
14. NOC if the property is in Society (NOC on Society's letter head)  
15. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
16. Contingent Bill with bank details (cancelled cheque to be attached). HBL/12
Note. (a) Age of independent house should be less than 25 years in case of RCC construction and 20 years in case of other type of construction with brick and cement. Purchase of mud wall house is not permitted.

(b) Age of flat should be less than 15 years.

(c) Sale deed duly registered in the name of the loanee or jointly with spouse is to be forwarded to the society within 3 months from the sanction of the loan. Sale consideration of sale deed should be equal or of more value than the loan sanctioned).
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous three months HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8 A &B). HBL/08
9. Documentary proof showing the ownership of the house/flat (Copy of sale deed).  
10. Documentary proof showing loan availed, loan repaid and loan outstanding (only Principal) as on the date of application.  
11. List of documents held by the Bank on their letter head (Sale deed of value with Bank etc).  
12. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
13. Contingent Bill with bank details (cancelled cheque to be attached). HBL/12
Note. (a) In cases where the loan taken from financial institution is for purchase of property from statutory body (i.e. Flat/House or Plot from AFNHB/AWHO/SFS from Govt housing board/SFS/DDA) where possession has not yet been given, the following document is to be submitted instead of Sl No 9 (i.e. Copy of original sale deed) in the above mentioned list.

(i) Copy of letter forwarded to bank for fore-closure
(ii) Acceptance letter from bank for fore-closure
(iii) An undertaking by the applicant stating that the original allotment letter and tripartite agreement (as per AFGIS format) duly signed by the statutory body within one month from the date of payment.

(b) Documents from Sl No 1-8 and from Sl No 10-13 remains the same.

(c) Original house documents from bank/ sale deed of value equivalent or more than the loan amount duly registered in the name of loanee or jointly with spouse is to be submitted within one month from the sanction of the loan.
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous
three months
HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8 A & B) HBL/08
9. Estimate Cost of Flat / House HBL/10
10. Regd Sale Deed / Title Deed (original) of land or, Regd Gift Deed registered in your name or jointly with spouse. In case of regd gift deed also forward copy of Donor's deed or proof of title (Loan will not be provided if the land is agricultural).  
11. Approved Building Plan for construction in original duly approved by local govt. Officials (Municipal Corporation / Municipal Committee / Tehsildar / Secretary Gram Panchayat / BDO / Executive Engineer, Town Planner/Circle Officer). The Building Plan should have details of property, owner name, date of approval.  
12. Latest Non-encumbrance Certificate from Sub Registrar Office (Not more than two months old)  
13. Layout plan duly approved by local development authority in case the said property is part of a colony/ residential project.    
14. Change in land use certificate from SDM/ Tehsildar/Collectorate if said land is agricultural in nature  
15. A certificate from BDO intimating the present classification of plot whether it is residential or agricultural.  
16. Four coloured photograph (of post card size) of vacant plot from four different angles/location on which the house is planned to be constructed. The photograph must be taken in such a manner that neighbouring construction/reference points can also be seen in photographs. It should also bear the property details and owners name. Also, service number of application must be annotated on all documents including photos (on reverse)  
17. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
18.

Contingent Bill with bank details (cancelled cheque to be attached).

HBL/12
Note. (a) Member availing Loan for self construction of house on their plot/land needs to submit the following within 18 months of drawal of first instalment of HBL or on completion of construction of house which ever is earlier.
(i) Completion certificate duly quoted with House No./Flat No(With full details of location i.e Gali No./Street/Village/PS/Distt).
(ii) The certificate should also bear Plot No./Khasra No. of plot on which House/Flat has been constructed. The certificate shall also the bear the name of the owner and the year of construction of House.
(iii) The certificate should be issued on the letter head of the competent office i.e office of the Municipal Corporation/SDM/TEHSILDAR/BDO/ADO.
(iv) In case the house is constructed in village then completion certificate will be required to be issued by Secretary, Gram Panchayat on their letter head.
(v) The certificate must bear rubber stamp of signatory and should also bear the official seal of the office.
(vi) The certificate received on plain paper will not be accepted.
(b) The following also must be forwarded along with completion certificate.
(i) House Tax Receipt.
(ii) Electricity Bill or Telephone Bill or water Bill.
(iii) Photograph of House/Flat constructed duly self attested. The Photograph must bear the location of land.
(c) Non Receipt of completion certificate along with documents quoted in para (2) above will attract enhanced rate of interest form the date of drawal of loan and if deemed, the further necessary action will be taken.

(d) The Authenticity of the certificate if needed can be sent for verification.

(e) If the completion certificate is in regional language then an attested translated copy (either in English/Hindi) be sent along with the original.

(f) Loan for construction of house will be granted only on residential land. No loan will be granted on agricultural/ commercial land. Certificate in Para 15 (Category G) is mandatory.
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous
three months
HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8A & B) HBL/08
9. Regd Sale Deed / Title Deed (original)/ Regd Gift Deed registered in your name or jointly with spouse showing ownership of house or flat. In case of regd gift deed also forward copy of Donor's deed or proof of title (Loan will not be provided if the land is agricultural).  
10. Documentary proof of the age of house. The independent house should not be more than 25 years of age in case of RCC construction and 20 years in case of other type of construction with brick and cement  
11. Approved Building Plan for extension of house in original duly approved by local govt. Officials (Municipal Corporation / Municipal Committee / Tehsildar / Secretary Gram Panchayat / BDO / Executive Engineer, Town Planner/Circle Officer). The Building Plan should have details of property, owner name, date of approval.  
12. Latest Non-encumbrance Certificate from Sub Registrar Office (Not more than two months old)  
13. Estimate --Cost of for house extension from architect or civil engineer HBL/10
14. Copy of Govt HBA sanction letter (if any) along with second charge permission in favour of AFGIS  
15. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
16. Contingent Bill with bank details (cancelled cheque to be attached). HBL/12
Note. Completion certificate within 18 months from the release of the first instalment is to be forwarded to this Society from competent authority
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous
three months
HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8A & B) HBL/08
9. Allotment letter in original with cost of plot  
10. Proof of 5% payment  
11. Tripartite agreement in two copies (signed by the board with rubber stamp) HBL/09
12. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
13. Contingent Bill with your bank details HBL/12
Note. Sale deed equivalent or more than loan amount duly registered in the name of the loanee of jointly with spouse is to be forwarded to the society within 3 months from the sanction of loan
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous
three months
HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8A & B) HBL/08
9. Copy of Sale deed of seller (back to back copy as seal of sub registrar should be legible)  
10. Proof of 5% payment  
11. Agreement to sale between vendor and applicant HBL/11
12. Latest NEC from sub registrar office intimating name of present owner  
13. Certificate from BDO intimating present classification of plot whether residential or agricultural  
14. Layout plan duly approved by local development authority in case the said property is part of a colony/ residential project.  
15. Change in land use certificate from SDM/ Tehsildar/Collectorate if said land is agricultural in nature  
16. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  
17. Contingent Bill with bank details (cancelled cheque to be attached). HBL/12
Note (a) Regd. sale deed equivalent or more than loan amount duly registered in the name of the loanee of jointly with spouse is to be forwarded to the society within 3 months from the sanction of loan

(b) Loan for purchase of plot will be granted only on residential land not on agricultural / commercial land. Certificate mentioned in Para 13 (Category K) is mandatory.
Sl No Document/Form Form No
1. HBL Application (Page no. 19-20 of Booklet duly filled) HBL/01
2. Certificates for leave encashment, option to carry forward the loan and loan availed in previous
three months
HBL/02
3. Agreement Form HBL/03
4. Declaration HBL/04
5. Affidavit from Nominee HBL/05
6. Undertaking by Borrower HBL/06
7. Promissory Note HBL/07
8. Letter of Authorisation to AOC, AFCAO in Duplicate (Form No.8A & B) HBL/08
9. Sale deed/ Conveyance deed in original  
10. Latest Non-encumbrance Certificate from Sub-Registrar (Not more than two months old) with present owner's name.  
11.

Contingent Bill with bank details (cancelled cheque to be attached).

 
12. Preliminary Valuation by Govt approved valuer.  
13. Rough estimate.  
14. Completion Certificate from the Municipal Corporation or authority who has approved the site plan.  
15. Four photographs of the house duly self-attested.  
16. Form (F) 1517 /1523 original (Latest) / online/ Self attested printout of latest e-payslip. In cases of deputationist where no IRLA is maintained, the same needs to be forwarded by the respective organisation.  

Application Forms