1. The Scheme
of House Building Advance to Central Government Employees is aimed at providing
assistance to the Government employees to construct/acquire house/flats of
their own. The scheme was introduced in 1956, as a welfare measure. Ministry of
Urban Development & Poverty Alleviation act as the nodal Ministry for the
same.
2.
House Building Advance is admissible to all those temporary employees also who
have rendered 10 years of continuous service. The Ministries/Departments are
delegated powers to sanction House Building Advance to their employees in
accordance with the House Building Advance Rules.
3.With effect from 27-11-2008, the following provisions of
grant of House Building Advance shall be in operation, until
further orders:-
(i).The
maximum limit for grant of HBA shall be 34 months' of
pay in the pay band subject to a maximum of Rs.
7.50 lakh or cost of the house or the repaying capacity
whichever is the least, for new construction/purchase of new house/flat.
(ii).The
maximum limit for grant of HBA for enlargement of existing house shall be 34
months' pay in the pay band subject to a maximum of Rs.
1.80 lakh or cost of the enlargement or repaying capacity,
whichever is the least.
(iii).The
cost ceiling limit shall be 134 times the pay in the pay band subject to a
minimum of Rs.7.50 lakh and a maximum of Rs.30 lakhrelaxable up to a maximum of 25% of the revised maximum cost
ceiling of Rs.30 lakh.
4.
The rate of interest on House Building Advance is between 5% to 9.5% ,depending on the loan amount.
5.
The repaying capacity of Govt. servants who have more than 20 years of
remaining service has been revised from 35% to 40% of pay. (Pay means pay in
the pay band).
6. The salient features of House
Building Advance Rules are as follows-
1. ELIGIBILITY
- Permanent Government employees.
- Temporary Government employees who have rendered at least 10 years
continuous service.
- To be granted once during the entire service.
If both the husband and wife are
Government of India employees and eligible for HBA, it shall be admissible to
only one of them.
2. PURPOSE
HBA is granted for:
1. Constructing a new house on the plot owned by the
official or the Official and the Official's wife/husband jointly.
2. Purchasing a plot and constructing a house thereon.
3. Purchasing a plot under Co-operative Schemes and Constructing a house thereon or acquiring house through
membership of Co-operative Group Housing Scheme.
4. Purchasing /construction of house under the
Self-Financing scheme of Delhi, Bangalore,
U.P., Lucknow etc.
6. Enlarging living accommodation in an existing house
owned by the official or jointly with his/her wife/husband. The total cost of
the existing structure (excluding cost of land) and the proposed additions
should not exceed the prescribed cost ceiling.
7. Repayment of loan or advance taken from a
Government or HUDCO or Private source even if the construction has alreadyCommenced,
subject to certain conditions.
8. Constructing the residential portion only of the
building on a Plot which is earmarked as a shop-cum-residential plot in a
Residential colony.
* Private party means registered
builders but not private individuals.
3. CONDITIONS:
a) The applicant or spouse or minor
child should not already own a house in the town/Urban agglomeration where the
house is proposed to be constructed or acquired.
b) The title to the land should be
clear. The land may be owned either:
- by the Government employee; or
- jointly by the Government employee and spouse.
c) COST
CEILING
134 times of pay in the pay band
subject to a minimum of Rs. 7.50 lakh and a maximum of Rs.30 lakh
Administrative
Ministry may relax the cost ceiling to
25% of cost ceiling mentioned above in the individual cases on merits.
(Effective
from 27th November, 2008)
d) AMOUNT
OF ADVANCE:
- will be the LEAST of the following:-
(i) 34 times the pay in the pay band.
(ii)
The cost of construction.**
(iii) Rs.
7,50,000/- ***
(iv) Repaying Capacity.
**
80% of cost in rural areas.
*** Rs.
1,80,000/- in case of enlargement of existing house.
e) REPAYING CAPACITY:-
Repaying
Capacity is computed on the following basis:-
S. No.
|
Length of remaining service of the applicant.
|
Repaying Capacity
|
1.
|
Retiring after 20 years.
|
40% of pay @
|
2.
|
Retiring after 10 years but not later than 20
years.
|
40% of pay @ plus 65% of * Retirement Gratuity
|
3.
|
Retiring within 10 years
|
50% of pay @ plus 75% of * Retirement Gratuity.
|
@
Pay means pay in the pay band
4. DISBURSEMENT OF ADVANCE:
S. No.
|
Purpose of HBA
|
Disbursement
|
|
(1)
|
(2)
|
(3)
|
|
(i)
|
For construction/enlargement (single or double storeyed).
|
50% -
50% |
on execution of mortgage deed
on construction reaching plinth level (Ground Floor). |
(ii)
|
For purchase of land and construction (Single storeyed)
|
40% or -
actual cost 30% - 30% - |
for purchase of plot on execution of agreement and production of Surety
Bond.
On execution of Mortgage deed. On construction reaching plinth level. |
(iii)
|
For purchase of land and construction (Double storeyed)
|
35% or actual cost
32.5% - 32.5% - |
for purchase of plot on execution of agreement and production of Surety
bond.
On execution of the mortgage deed. On construction reaching the plinth level. |
(iv)
|
For purchase of ready built house/flat
|
100% - in one lumpsum.
|
|
(v)
|
For acquiring flat/house from Co-operative Group
Housing Society.
|
20% -
80% - |
Towards purchase of land by the Society.
in suitable installments on receipt of demand
(pro-rate basis)
|
(vi)
|
For purchase of flat under SFS of Development
Authorities etc.
|
No payment for initial registration Deposit.
May be released in not more than 5instalments. But the
fifth and finalinstalment should not be less than 10% and is to be released for making final
payment.
|
|
5. TIME SCHEDULE FOR UTILISATION OF
HBA:
S. No.
|
Purpose
|
Time limit
|
(a)
|
Purchase of registered plot on which construction
can commence immediately.
|
Sale deed to be produced within 2 months.
|
(b)
|
Purchase of ready built house.
|
Acquisition and mortgage to Government to be
completed within 3 months.
|
(c)
|
Purchase/construction of new flat
|
Should be utilised within one month of sanction.
|
6. REPAYMENT OF ADVANCE:
The
recovery of advance shall be made in not more than 180 monthly installment and interest shall be recovered thereafter in not
more than 60 monthly installments. In case Government servant is retiring
before 20 years, repayment may be made in convenient installments and balance
may be paid out of Retirement Gratuity.
7. INTEREST
The rate of interest on Housing Building Advance
with effect from 1st April, 2003 are as follows:-
S. No.
|
Amount of Advance sanctioned to a Government
Servant
|
Rate of Interest on HBA (Per Annum).
|
1.
|
Upto Rs. 50,000/-
|
5%
|
2.
|
Upto Rs. 1,50,000
|
6.5%
|
3.
|
Upto Rs. 5,00,000/-
|
8.5%
|
4.
|
Upto Rs. 7,50,000/-
|
9.5%
|
8.COMMENCEMENT OF RECOVERY:
Construction of a house or enlargement of living
accommodation
|
* From pay for the month following the
completion.
Or
The pay for the 18th month
after date of payment of the 1st installment,
whichever is earlier.
|
Purchase of land and construction.
|
* From pay for the month following the completion
of the house.
Or
The pay for the 24th month
after date of drawl of instalment for purchase of land, whichever is earlier.
|
COMMENCEMENT OF RECOVERY (CONT'D):
Ready built flat.
|
* Pay for the month following the month in which
advance was drawn.
|
Purchase of Flat under SFS from Development
Authority/Housing Society.
|
* From the pay for the 18th month
after date of payment of 1st instalment.
|
*
The sanctions of HBA should invariable stipulate a higher rate of interest at
2.5% above prescribed rates with the stipulation that if conditions attached to
the sanction are fulfilled, rebate of interest to the extent of 2.5% will be
allowed.
9. CREATION OF SECOND MORTGAGE:
The
Government servants who have obtained HBA from the Government may be permitted
to create a second charge on the property provided they obtain prior permission
of the Head of the Department and the draft deed of second mortgage is submitted
to the Head of the Department for scrutiny. Such a second charge may be created
only in respect of loans to be granted for meeting the balance cost of
houses/flats by recognised financial institutions.
10.PROVISIONS FOR SAFE RECOVERY OF HOUSE BUILDING ADVANCE:
(i). As a safeguard of the House Building advance, the loanee Government
employee has to insure the house immediately on completion or purchase of the
house, as the case may be, at his own cost with Life Insurance Corporation of
India and its associated units. The house/flat
constructed/purchased with the help of HouseBuilding advance can also
be insured with the private insurance companies which are approved by Insurance
Regulatory Development Authority(IRDA). However, the insurance
should be taken for a sum not less than the amount of advance against damage by
fire, flood and lightning, and has to be continued till the advance together
with interest is fully repaid to Government.
(ii).The house constructed/purchased with the help of House Building
Advance has also be mortgaged in favour of the President of India within
a stipulated time unless an extension of time is granted by the concerned Head
of the Department. After completion of the recovery of the advance together
with interest thereon, the mortgage deed is re-conveyed in a proper manner.
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