The Central Government staff, who want to construct their personal home, can avail the House Building Advance (HBA). The HBA availed from 1st October 2020 to 31st March 2022 i.e., for 18 months will come at a basic interest price of 7.9 per cent. The government had earlier revised the House Building Advance (HBA) guidelines for the Central Government Employees incorporating the accepted suggestions of the 7th Pay Commission.
Back in September 2020, the FM had announced lowering of the interest price for House Building Advance (HBA), hence providing relief and straight impacting the Central Government staff in the nation. Going forward, the interest price of House Building Advance (HBA) will be linked to the 10-year G-Sec yield on the quantity of advance taken for developing a home.
As per the suggestions of the 7th Pay Commission and the HBA 2017 guidelines, the total quantity of advance that a central government employee can borrow is up to 34 months of the standard spend topic to a maximum of Rs. 25 lakh, or the expense of the residence, or the quantity according to repaying capacity, whichever is the least for new building/buy of new residence/flat.
The HBA quantity for expansion of the residence is capped at Rs.10 lakh or 34 months of standard spend or expense of the expansion of the residence or quantity according to repaying capacity, whichever is the least.
The methodology of recovery of HBA shall continue as per the current pattern recovery of principal initial in the initial fifteen years in 180 month-to-month instalments and interest thereafter in the next 5 years in 60 month-to-month instalments. The advance carries basic interest from the date of payment of installment.
House Building Advance can be availed towards repayment of bank loan taken for the goal of building, buy of new residence or flat. HBA is admissible to permanent staff and all these short-term staff also who have 5 years of continuous service.
Employees shall be eligible for grant of House Building Advance on the date he or she has obtained loans from banks and other monetary institutions, irrespective of no matter if they applied for House Building Advance prior to raising the loan.
House Building Advance for repayment of loans shall be granted to the eligible staff in one lump sum. However, the Government employee shall make the HBA Utilization Certificate inside one month from the date of release of HBA.