AI SummaryCentral government employees can get a house loan at a low rate under the House Building Advance (HBA) Scheme. HBA interest rate for the financial year 2026-27 is fixed at 7.10%, and this rate applies to advances sanctioned from 1 April 2026 to 31 March 2027. Earlier rate of 8.50% no longer applies to fresh advances.
House Building Advance is a housing finance facility offered to eligible central government employees for building, buying, or expanding a house. Ministry of Housing and Urban Affairs looks after the scheme under the House Building Advance Rules. This article shares the latest interest rate, loan limit, eligibility, benefits, and rules of HBA.
House Building Advance Scheme 2026 for Central Government Employees
Employees can use this advance for construction of a new house, purchase of a ready-built flat or house, purchase of land and construction, expansion of an existing house, or repayment of a home loan already taken from a bank. A migration facility also allows an employee to shift an existing bank home loan to the HBA scheme subject to the rules.
If both husband and wife are central government employees, both can get HBA jointly or separately as per the rules. Normally, only one House Building Advance is allowed during the whole service period of an employee.
| Detail | Information |
|---|---|
| Scheme Name | House Building Advance (HBA) |
| Launched By | Central Government |
| Beneficiaries | Central government employees |
| Interest Rate FY 2026-27 | 7.10% simple interest |
| Maximum Loan Amount | Rs 25 lakh or 34 months basic pay |
| Expansion Limit | Rs 10 lakh |
| Repayment Period | 15 years principal + 5 years interest |
| Main Department | Ministry of Housing and Urban Affairs |
| Official Website | mohua.gov.in |
Interest Rate on HBA for FY 2026-27
Finance Ministry has fixed the HBA interest rate at 7.10% simple interest for the financial year 2026-27 through O.M. No. 5(3)/-B (PD)/2026 dated 09.04.2026. This rate is valid for advances sanctioned from 1 April 2026 to 31 March 2027 or until further orders.
Earlier, the interest rate on HBA was 8.50%. At one point the government planned to link the rate to the 10-year G-Sec yield, but the current system fixes the rate every financial year in consultation with the Finance Ministry. Employees can check the latest rate from the official memorandum of the ministry before applying.
Loan Amount under HBA Scheme
Maximum amount that a central government employee can get under House Building Advance is the lowest of these four amounts for new construction or purchase of a house or flat:
- 34 months of basic monthly salary of the employee
- Rs 25 lakh, the maximum ceiling fixed by the government
- Actual cost of the house or flat
- Amount as per the repaying ability of the employee
For expansion of an existing house, an employee can get up to Rs 10 lakh or 34 months of basic salary, whichever is lower, subject to repaying ability. Employees who previously got only Rs 1.8 lakh for repair or extension work can now get a much bigger amount under the revised rules.
Cost Ceiling and Repayment of HBA
Total cost of the house, excluding the cost of land, should not be more than 139 times the basic pay of the employee, subject to a maximum of Rs 1 crore. This ceiling can be raised by up to 25% on the basis of merit of an individual case.
Repayment of HBA follows the existing recovery pattern. Principal is recovered first in 180 monthly installments spread over 15 years, and interest is recovered in the next 60 monthly installments over 5 years. Interest is charged on a simple interest basis from the date of the first installment.
House or flat financed through HBA must be insured against fire, flood, and lightning till the full repayment of the advance. The property is mortgaged in favor of the President of India, and an employee can still take an additional loan from a bank by getting a No Objection Certificate for creating a second charge.
Eligibility Criteria for HBA 2026
Below given are the details of eligibility criteria for the scheme:
Permanent central government employees, employees with at least 5 years of continuous service, employees on deputation, employees of Union Territories, All India Service officers serving under the central government, and employees under long-term contracts in eligible departments can apply for HBA.
Benefits of House Building Advance 2026
Below given are the revised benefits and rules of HBA as per the 7th Pay Commission recommendations:
- Employee can get basic salary advance of 34 months or up to Rs 25 lakh for construction or purchase of a new house. Earlier this limit was only Rs 7.5 lakh.
- Expansion limit is now Rs 10 lakh, compared to the earlier limit of Rs 1.8 lakh.
- Interest rate is fixed at a low simple interest without slabs for all loan amounts.
- Employee can get a No Objection Certificate at the time of HBA sanction to take an additional bank loan.
- Government has made easy provisions for the second charge and easy availability of bank loans.
Employees looking for other housing options can also check PM Awas Yojana Urban 2.0 BLC Scheme and DDA Housing Scheme for more housing support.
HBA 2026 Rules and Official Links
Employee can download the PDF of House Building Advance rules from the official website of Ministry of Housing and Urban Affairs using the below link.
IN ENGLISH: House Building Advance Rules - DOPT AIS House Building Advance Rules PDF
House Building Advance Scheme Earlier Rules - Official website of Ministry of Housing and Urban Affairs
For more updates and latest information about House Building Advance, please visit the official website at mohua.gov.in
House Building Advance in Maharashtra
Maharashtra government has again started the House Building Advance help for police personnel, under which they can get loans to build their houses. HBA for police personnel in Maharashtra was started on 10 April 2017 when Devendra Fadnavis was chief minister. It was scrapped by the Maharashtra Vikas Aghadi government led by Uddhav Thackeray on 7 June 2022 and was later relaunched.
On 12 May 2026, Chief Minister Devendra Fadnavis announced the approval of Rs 1,768.08 crore as housing advance for 5,459 police personnel in the state. The amount has been cleared for proposals submitted by the Maharashtra State Police Housing and Welfare Corporation, and the corporation will arrange the funds.
In an earlier decision, the state government decided to provide houses to police personnel residing at BDD chawls as service quarters, where they pay ₹15 lakh for a 500 sq ft home at Worli, Naigaon and NM Joshi Marg redevelopment projects.
FAQ's
What is the HBA interest rate for 2026-27?
HBA interest rate for the financial year 2026-27 is 7.10% simple interest. This rate applies from 1 April 2026 to 31 March 2027 or until further orders.
How much HBA can a central government employee get?
Up to 34 months of basic pay or Rs 25 lakh, whichever is lower, subject to the cost of the house and the repaying ability of the employee. For house expansion, the limit is Rs 10 lakh.
Can husband and wife both get HBA?
Yes. If both are central government employees and meet the eligibility conditions, they can get HBA jointly or separately as per the rules.
Can HBA be used to repay a bank home loan?
Yes. A home loan taken from a bank or financial institution for purchase or construction of a house can be shifted to the HBA scheme subject to the conditions given in the rules.
Muje roan utana hai uska tarikha batao
Really these center &state government employees are in such a poor condition, these are getting such high salary for no work and such facilities which they in deserve,
But we common man work 12 HR but don't get 10%of their salary and 0 such facilities
How to loan apply and where apply please tell me.
Ye loan kaha se le
Where do I get form for applying from Delhi ?
Ham apply Karna dahia 9021992984