Till the end of March 2023, Central Government employees are eligible for low-interest House Building Advances (HBA). HBA is now subject to an interest rate of 7.1%. Through an office memo dated April 1, 2022, the Ministry of Housing & Urban Affairs lowered the rate of interest on HBA to 7.1% through March 31 of 2023.
In accordance with the 7th Pay Commission's recommendations, the HBA facility is offered to employees of the Central Government. According to HBA regulations, Central Government employees are eligible for interest-bearing advances for a variety of things, including building a new home, buying a plot for a home, expanding their living space, and buying pre-built homes or apartments from housing boards, development authorities, registered builders, etc.
Even after construction has started, HBA can be used to pay back loans or advances taken from the government, HUDCO, or private sources.
Central Employees to Get Up to Rs 25 Lakh at 7.1 % Interest:
According to the 2017 House Building Advance Rules (HBA), Central Government Employees are eligible for up to 34 months of basic salary with an HBA cap of Rs 25 lakh. The employee will only be able to get the lowest amount possible as HBA if the cost of the house or apartment is less than Rs 25 lakh.
HBA can also be used to expand an existing home. Employees are eligible for 34 months of basic pay under this clause, up to a maximum of Rs 10 lakh, or the total cost of expansion up to Rs 10 lakh.
The amount of the advance must not exceed 80% of the actual cost of the land and the building of the home or the cost of expanding the living space in the event of development in rural areas. According to the HBA guidelines from 2017, this can be relaxed and 100% sanctioned if the Head of the Department confirms that the affected rural area comes within the periphery of the town or city.
What Did the 7th Pay Commission Recommend?
The following is the minimum amount of house building advance (HBA) that Central Government Employees are eligible to receive, per the recommendations of the 7th Pay Commission:
34 times the basic pay
Rs. 25 lakhs,
or the expected house price, whichever is lower.
The commission had suggested that the minimum number of years of continuous service needed to qualify for HBA be lowered to five. Additionally, if both partners work for the government, HBA should be admissible to each separately. The commission also called for allowing current employees who have already obtained home loans from banks and other financial institutions to switch to this scheme.
Chandigarh College Staff Protest Over Delay in 7th Pay Scale:
Meanwhile, the teaching and non-teaching staff of Chandigarh colleges lit up over 700 candles at Sector 17 in protest against the delay in the dispersal of the UGC 7th Pay Commission according to the ministry of home affairs notification release on March 29 that was adopted by the UT administration.
