The government have hiked the interest for the House Building Advances (HBA) for the Central Government employees by 0.4% to 7.5%. The hike will be applicable to the House Building Advance sanctioned to Central Government Employees during the period from 1st April, 2023 to 31st March, 2024. At present, the HBA is subject to an interest rate of 7.1%. In an office memo on April 1, 2022, the Ministry of Housing & Urban Affairs had lowered the rate of interest on HBA to 7.1% till March 31, 2023. However, as the new financial year begins from March, the interest rate on HBA is likely to be increased, the report stated.
As per the 7th Pay Commission’s recommendations, the HBA facility is offered to employees working at the Central Government.
The HBA regulations say that the Central government employees are eligible for HBA for things, including building a new home, buying a plot for a home, expanding their living space and buying pre-built homes or apartments from housing boards, development authorities, registered builders, etc.
As per the 2017 House Building Advance Rules (HBA), the Central government employees are eligible for up to 34 months of basic salary with an HBA cap of Rs 25 lakh. They will only be able to get the lowest amount as HBA if the cost of the house or apartment is less than Rs 25 lakh.
The government employees are eligible for 34 months of basic pay under this clause, up to a maximum of Rs 10 lakh, or the total cost of expansion up to Rs 10 lakh.
Government of India
Ministry of Housing & Urban Affairs
(Housing III Section)
Nirman Bhawan, New Delhi
In pursuance to revision of interest rate by Ministry of Finance, Dept of Economic Affairs vide OM 5(2)-B(PD)/2023 dated 20.03.2023, the rate of interest applicable on House Building Advance sanctioned to Central Government Employees during FY 2023-24 (i.e. 1st April, 2023 to 31st March, 2024) will be 7.5% till further orders.
2. This issues with the approval of Competent Authority.
Under Secretary to the Govt. of India
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