7th Pay Commission Central Government gives House Building Advance (HBA) to its employees. Under this scheme, central employees can avail house building advance facility till March 31, 2023 at the rate of 7.1%.
House Building Advance: In today’s time, a lot of money is needed to build a house. Most of the people complete their work by taking a home loan from the bank for this. But if you are a central government employee, then you can take advantage of House Building Advance (HBA). The Central Government gives House Building Advance (HBA) to its employees under the recommendations of the 7th Pay Commission. Under this scheme, central employees can avail house building advance facility till March 31, 2023 at the rate of 7.1%.
Who are eligible for this scheme of the government
All those permanent employees of the Central Government who have been rendering their services continuously for five years are considered eligible for the House Building Advance Scheme. If both husband and wife are central government employees, then both will get the benefit of this facility. In this situation, they can take advantage of this scheme separately and jointly as they want.
When do you get the benefit of HBA
- When a central employee constructs a new house on a plot purchased in the name of himself or his wife or both, he can avail the benefit of HBA.
- Central employees get the benefit of HBA on purchasing a plot under the co-operative scheme and building a house or flat on it.
- On acquisition of a house by the employees through the membership of the Co-operative Group Housing Society, the government gives them the facility of house building advance.
- Central employees get the benefit of HBA even after buying a house or flat built by a private organization.
- Central employees can also take advantage of HBA at the time of purchase of a house built by the Housing Board of the Developing Authority, Semi-Government and registered builder.
- The benefit of this scheme is available in the purchase or construction of houses under the self-financing scheme of all the cities including Delhi, Bengaluru, Lucknow.
- If the employee wants to expand the house in which he is already living, he can still take advantage of the HBA scheme.
- Central employees who had taken home loans from banks for construction of houses can avail the benefits of HBA scheme with certain conditions.
Benefit will be available only once during the service
The benefit of HBA scheme can be availed only once during the service. Under the HBA scheme, central government employees can take advance of 34 months basic salary, up to a maximum of Rs 25 lakh. Basic salary of 34 months, up to a maximum of Rs 10 lakh can be taken for the expansion of the built house. In rural areas, the advance amount is limited to 80% of the actual cost of the land and the cost of construction of the house or expansion of the old house. If the department head approves that the concerned rural area comes under the purview of the city, then 100% approval can also be done. For more details, you can visit this link https://mohua.gov.in/pdf/5a05336ac28f7HBA%20Rules%202017.pdf .
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