Arunachal Pradesh Rural Bank Home Loan Schemes
Floating Interest Rates at 7.50% p.a. onwards Revised as of June 2025, aligned with SBI-sponsored Regional Rural Bank benchmarks.
Lower Processing Fees & Charges Minimal upfront charges aimed at reducing the cost burden for rural and semi-urban borrowers.
Extended Loan Tenure up to 30 Year Flexible repayment options now available for up to 30 years to reduce monthly EMI pressure.
Zero Prepayment Penalty on Floating Loans Borrowers can repay their loans early without incurring any penalties.
PMAY-linked Subsidies Available Eligible borrowers can avail interest subsidies under the Pradhan Mantri Awas Yojana, based on income categories.
Increased Loan-to-Value (LTV) Ratio Finance up to 90% of the property value for loans up to ₹30 lakhs and 75% for higher amounts.
Digital Application & Doorstep Services Online loan processing and assisted doorstep services available for better accessibility.
Eligible for State-Level Subsidy Schemes Borrowers may also benefit from local housing initiatives in Arunachal Pradesh in addition to national schemes.
Expanded Loan Purpose Loans can be used for home purchase, construction, renovation, plot purchase, and self-construction.
Arunachal Pradesh Rural Bank Home Loan – Tax Benefits
Deduction on Principal Repayment (Section 80C)
You can claim up to ₹1.5 lakh per financial year on the principal portion of your home loan EMI. This also includes expenses like stamp duty and registration fees (claimable only in the year of purchase).
Deduction on Interest Payment (Section 24(b))
A maximum of ₹2 lakh per year can be claimed for interest paid on a home loan if the property is self-occupied. For rented or let-out properties, there’s no upper limit, but the total loss that can be set off under the "Income from House Property" head is capped at ₹2 lakh per year.
Additional Deduction for First-Time Buyers (Section 80EE/80EEA)
- Section 80EE: Up to ₹50,000 per year (for loans sanctioned before March 31, 2017).
- Section 80EEA: Up to ₹1.5 lakh per year (for loans sanctioned between April 1, 2019, and March 31, 2022) if certain conditions on property value and loan amount are met.
Deduction on Pre-Construction Interest
Interest paid during the construction period (before possession) can be claimed in five equal installments starting from the year in which construction is completed, within the ₹2 lakh cap under Section 24(b).
Tax Benefits for Joint Home Loans
If the loan is taken jointly, each co-borrower who is also a co-owner can separately claim deductions of up to ₹1.5 lakh (under Section 80C) and ₹2 lakh (under Section 24(b)), effectively doubling the total tax benefit for the household.