7th Pay Commission: According to the recommendations of the 7th Pay Commission (7th Pay Commission) and HBA Rules , central employees can take a basic salary of 34 months or a maximum of Rs 25 lakh as advance.
Big relief to employees under 7th Pay Commission
The government is giving the benefit of cheap home loans to the central government employees so that they can take advantage of cheap loans to build their own homes. Actually, the government has cut interest rates on housing building advance for the financial year 2022-23. The Ministry of Urban Development has reduced the interest rate on Housing Construction Advance (HBA) to 7.1 percent for the current financial year.
Housing Building Advance at 7.1%
The central government fixes the interest rate on housing building advances based on the returns of 10-year government bonds. In 2021-22 for central employees, where the interest rate on Housing Building Advance used to be 7.9 percent, which was applicable for 18 months from 1 October 2020 to 31 March 2022. But now it has been reduced to 7.1 percent. Central employees can get their house constructed by taking Housing Building Advance.
7th Pay Commission can take loan up to 25 lakhs
As per the recommendations of the 7th Pay Commission (7th Pay Commission) and Housing Construction Advance 2017 Rules, the center can charge a maximum basic salary of Rs 25 lakh for the construction of a new house. Housing construction advance is available at the rate of simple interest. As per the Housing Building Advance (HBA) rules, the principal amount of the loan has to be repaid in 180 EMIs in the first 15 years and then 60 EMIs in five years to pay the interest on the loan. Any permanent employee, temporary employee who is still in continuous service for five years. He can also take a Housing Construction Advance (HBA) to repay the loan taken from the bank.
