Thursday, December 1, 2022

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7th Pay Commission: Planning to buy new house, get up to Rs25 Lakh at 7.1% interest

7th Pay Commission Update: Central Government employees can apply for a low-interest Housing Building Advance (HBA) until March 31, 2023. Through an Office Memorandum dated April 1, 2022, the Ministry of Housing and Urban Affairs reduced the interest rate on HBA to 7.1% until March 31, 2023.

It is worth noting that the Ministry of Housing and Urban Affairs reduced the interest rate on HBA to 7.1% until March 31, 2023 in an Office Memorandum dated April 1, 2022.

“In the case of rural construction, the amount of advance shall be limited to 80% of the true cost of the land and construction of the house or cost expansion of living accommodation.” The HBA rules 2017 state that “this can be relaxed and 100% sanctioned if the Head of the Department certifies that the concerned rural area falls within the periphery of town or city.”

7th Pay Commission: Housing Building Advance | Important Information

  • The current interest rate for HBA is 7.1%.
  • Employees of the Central Government can obtain interest-bearing advances for purposes such as building a new house, purchasing a plot for building a house, expanding living accommodations, purchasing ready-built houses or flats from housing boards, development authorities, registered builders, and so on.
  • Even if construction has begun, central government employees can obtain HBA to repay a loan or advance obtained from the government, HUDCO, or a private source.
  • Central Administration Employees can receive up to 34 months of basic pay as HBA, subject to a maximum of Rs 25 lakh, according to the House Building Advance Rules (HBA) 2017.
  • If the cost of the house/flat is less than Rs 25 lakh, the employee is only eligible for the smallest amount as HBA.
  • HBA is available for existing house expansion.
  • Employees can receive 34 months of basic pay up to a maximum of Rs 10 lakh, or the total cost of expansion up to Rs 10 lakh, under this provision.

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