7th Pay Commission Latest News: The government has increased the Dearness Allowance (DA), Dearness Relief (DR) as well as House Rent Allowance (HRA) for July 2021. After this, now the government has extended the House Building Advance Scheme (HBA Scheme) for central employees till March 2022.
7th Pay Commission: There is good news again for the central employees. Now they can take House Building Advance (HBA) till March 31, 2022 to build their house. This scheme was started from 1 October 2020 and under this, till 31 March 2022, the central government is giving house building advance to its employees at 7.9 percent interest rate. The government has also extended the House Building Advance Scheme (HBA Scheme) for central employees till March 2022. That is, if a government employee wants to buy his house, then he will get the facility of home loan at affordable rates till March 2022.
Advance for house construction at affordable rates
According to the recommendations of the 7th Pay Commission and HBA (House Building Advance) rules, central government employees for construction of a new house or purchase of a new house-flat for 34 months basic salary, maximum Rs 25 lakh or the cost of the house Or you can take advance of the amount whichever is less from the ability to repay the advance. Simple interest will be charged on the advance at the rate of 7.9 per cent. Temporary employees with continuous service of 5 years can also take advantage of this facility.
What is HBA?
The Central Government gives House Building Advance to its employees. In this, the employee can take advance to build a house on his own or his wife’s plot. This scheme was started from 1 October 2020 and under this, till 31 March 2022, the central government gives house building advance to its employees at the rate of 7.9% interest.
Advance for house extension
According to the rules of House Building Advance, for the extension of the house, central employees can take an advance of maximum Rs 10 lakh or basic salary of 34 months, the cost of expansion of the house or the ability to pay the advance, whichever is less. The amount taken in advance will be recovered as principal for the first 15 years or 180 months. In the remaining five years i.e. 60 months, it will have to be returned in EMI as interest. Advance will also be available at the rate of 7.9%.
Bank’s home loan can be paid by taking advance
If the employee has taken a home loan from the bank for building a new house, taking a flat, then it can be repaid by taking an advance. This advance will be available to permanent as well as temporary employees. But the job of temporary employees should be for five consecutive years. Employees will get house building advance from the day they have taken loan from banks and other financial institutions. Even if you have applied for advance for building a house earlier, but this amount will be available from the day you have been given the loan. Advance for bank-repayment will be given in lump sum. However, the employees will have to submit the HBA Utilization Certificate within one month from the date of issuance of advance.
