The Central government has revised the loan amount and some rules under the House Building Advance (HBA) scheme for Central Government Employees. Under the scheme, central Govt. employees will be able to get advance loan up to Rs. 25 lakh at 8.5% interest rate. Earlier, the amount limit was Rs. 7.50 lakh with interest from 6 percent to 9.50 percent.
Accordingly, the employee can take loan up to 25 lakh for the construction and purchase of a house at simple interest rate. This scheme is being implemented by the Housing and Urban Affairs Ministry. The benefits from this revised loan can be approx. 3 times as compared to the previous amount given under the House Building Advance Scheme.
However, the employees who are planning to repair / extend their houses can take loan up to Rs. 10 lakh compared to previous limit of Rs. 1.8 lakh. The interested candidates can apply for a loan by downloading the application form for this scheme.
House Building Advance 2017 Eligibility
Below given the details of eligibility criteria for the scheme
As per the statement of Housing and Urban Affairs Ministry, the people will now be able to save much more by availing the benefit of the scheme as compared to borrowing from lending institutions on a loan of Rs. 25 lakh for the duration of 20 years.
Interest Rates Benefits Under HBA 2017
Benefits of House Building Advance 2017
Below given the details of revised rules of HBA 2017 as per the recommendations of the 7th Pay Commission.
- The employee can take the basic salary in advance of 34 months or up to Rs 25 lakhs. Previously, this limit was only Rs. 7.50 lakh.
- The beneficiary can use this money for the construction or purchase of a new house.
- The revised amount has been extended up to Rs. 10 lakh (earlier Rs 1.80 lakh) for expansion of house.
- The total cost of the home should not exceed 139 times the basic pay of of the employee subject to a maximum of Rs. 1 crore. However, this can be increased by maximum 25% on the basis of merit of individual case.
- The interest rate is now fixed at a nominal simple interest of 8.5% without any slabs. Previously, this interest rate was (6% to 9.5%) for loan of Rs 50,000 to 7,50,000.
- Now candidates can avail ‘No Objection Certificate’ at the time of HBA sanction.
- Moreover, the government also make easy provisions for the second charge and will ensure easy availability of the bank’s loan.
The interest rate under the house building advance 2017 scheme will be revised every three years in consultation with the Ministry of Finance.
House Building Advance 2017 Rules
Moreover, the candidate can download the PDF of new rules of House Building Advance 2017 from the official website of Ministry of Housing and Urban Affairs using the below link.
IN ENGLISH: House Building Advance 2017 Rules.
IN HINDI: House Building Advance 2017 Rules Hindi
For more updates and latest information about Housing Building 2017, please visit the official website at moud.gov.in.