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.