7th Pay Commission Updates: Deadline to get House Building Advance at lower interest rates extended; check new date here
New Delhi | Jagran Business Desk: If you are an employee of the Central government, then this is the best time to avail of house building advance from the government at lower interest rates. Amid the COVID-19 pandemic, the government has extended the date to get loans for building a house till March 31, 2022. The government is offering house building advance at a 7.9 per cent interest rate.
The extension in the date came as Finance Minister Nirmala Sitharaman last year had announced major reforms for the housing sector to accelerate the pandemic-ridden economy of the country. The reforms included the reduction in the interest rate on house building advance. Both central and state government employees can take this advance at lower interest rates.
What is House Building Advance?
House Building Advance (HBA) is offered to employees of the Central and State Governments with an aim to provide assistance in the construction or acquisition of houses/flats. The scheme was first launched in 1956 in the form of a welfare measure. HBA is provided to all permanent or temporary employees with service of 10 continuous years or more. The respective departments are given the power to sanction House Building Advance to employees based on the existing rules.
Where to apply for House Building Advance?
Employees can apply for this advance in their department. The funds required to buy the house will be available through a special window. This window has experts who help in availing housing loan easily. Along with this, relief has been given by the government in the External Commercial Guidelines for Affordable Housing.
Interest rate on House Building Advance:
HBA is associated with a simple interest from the date of payment of the advance amount. The interest amount is calculated based on the outstanding balance on the last day of the month. The interest rate on HBA is between 6 per cent and 9.5 per cent and is based on the loan amount.
What are the conditions to get House Building Advance?
Your House Building Advance file will be passed only after seeing the basic pay of 34 months and the price of the house. Also, the years of service were also considered while passing the advance amount.
The advance will be available on these terms:
To buy a plot or house
For house construction
To buy a plot from a cooperative or group housing society
To buy a house under self-financing scheme
Posted By: Talibuddin Khan