The government has extended the House Building Advance (HBA) benefits till March 31, 2022. Under this, a central government employee can take an advance for building a house at an interest rate of 7.9%. The Central Government had launched the House Building Advance (HBA) scheme for central employees on 1 October 2020.
According to the recommendations of the 7th Pay Commission and HBA 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 the ability to pay the advance, whichever is less. Yes, you can take advance of that amount. The amount taken in advance will be recovered as principal for 180 months i.e. 15 years. For the remaining 5 years, it will be recovered in EMI as interest.
You can also repay the loan taken from the bank to build a new house or to build a flat or house by taking an advance. 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 the construction of the 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, employees must submit the HBA Utilization Certificate within one month from the date of issuance of the advance.
There is a provision to give the advance amount in the form of a loan for the house to the permanent employees of the government and temporary employees who have been in continuous service for 5 years. The facility of House Building Advance is available to the employees of the Central Government. Under this, employees can take advance money to build a house on their land. Under this scheme, money is also available for the purchase of a new house or flat.
