The Central Government has extended the House Building Advance (HBA) benefits for government employees till March 31, 2022. Under this, a central employee can take an advance for building a house at an interest rate of 7.9 percent.
house building advance
If you are a government employee and are dreaming of buying or building your own house, then there is good news for you from the Modi government. The Central Government has extended the House Building Advance (HBA) benefits for government employees till March 31, 2022. The Center is giving the benefit of House Building Advance to all Central Government Employees (CGS). Under this, a central employee can take an advance for building a house at an interest rate of 7.9 percent.
Let us inform that on 1 October 2020, the Central Government had started the House Building Advance (HBA) scheme for central employees. Now this scheme has been extended till March next year. Keeping in view the 7th Pay Commission Pay Matrix and 7th CPC approval provisions, the Center has already updated the HBA guidelines for Central Government Employees.
What is House Building Advance?
Permanent employees of the government and temporary employees who have worked continuously for 5 years get advance amount in the form of loan to buy a house. The facility of House Building Advance is available to the employees of the Central Government. Under HBA, government officials can get advance to build a house on their land. Advance is also available for purchase of new house or flat under HBA, this advance can be used as down payment of housing loan.
The Ministry of Housing and Urban Affairs Housing-III issued an Office Memorandum (OM) in this regard and said, in respect of House Building Advance (HBA)-2017, the rate of interest on House Building Advance to Central Government employees will be 7.90 per cent. It will be for 18 months from 1 October 2020 to 31 March 2022.
How much advance can you take
According to the recommendations of the 7th Pay Commission and HBA rules, Central Government employees for construction of a new house or purchase of a new house-flat for 34 months basic salary, maximum Rs 25 lakh or the cost of the house or the ability to pay the advance, whichever is less. Yes, you can take advance of that amount. The amount taken in advance will be recovered as principal for 180 months. In the remaining 5 years, it will be recovered in EMI as interest.
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