Last Update: January 11, 2023, 2:43 PM IST
The facility of HBA is given to the Central Government employees as per the recommendations of the Seventh Pay Commission.
Central Government employees are eligible for interest bearing advances for various things.
Central Government employees are eligible for low interest House Building Advance (HBA). HBA is now subject to an interest rate of 7.1%. Through an office memorandum dated April 1, 2022, the Ministry of Housing and Urban Affairs reduced the interest rate on HBA to 7.1% till March 31, 2023. However, interest rates are likely to be hiked by the Center from the new financial year. HbA.
The facility of HBA is given to the Central Government employees as per the recommendations of the Seventh Pay Commission. As per the HBA rules, central government employees are eligible for interest-advance for a variety of things, including construction of a new house, purchase of a plot for a house, expansion of their living space and pre-fabricated houses from the Housing Board Or buying an apartment. Development Authority, Registered Builder, etc. Even after the commencement of construction, the HBA can be used to repay loans or advances obtained from the Government, HUDCO or private parties.
As per the 2017 House Building Advance Rules (HBA), central government employees are eligible for up to 34 months of basic pay with an HBA cap of Rs 25 lakh. The employee will be able to get the lowest amount as HBA only if the cost of the house or apartment is less than Rs 25 lakh. HBA can also be used to extend an existing home. Employees are eligible for 34 months’ basic salary under this clause, up to a maximum of Rs 10 lakh, or the total cost of the extension up to Rs 10 lakh.
As per the recommendations of the 7th Pay Commission, Central Government employees are eligible to receive at least of the following as House Building Advance (HBA):
34 times of basic bay
Rs 25 lakh or the estimated cost of the house, whichever is less
The commission had recommended that the requirement of minimum 10 years of continuous service for availing HBA should be reduced to 5 years.
If both husband and wife are government employees, HBA should be admissible to both separately.
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