Central Government Employees: There is news of work for central employees (7th pay commission). The central government has reduced the rate of interest (Rate of interest) of home loan i.e. building advance (HBA) taken from the banks for the construction of houses by the employees, if the employees want, they can take advantage of it till March 2023. For this, the office memorandum has already been issued by the government. About 47 lakh employees are getting benefit from this decision of the government.
In fact, the Modi government has reduced the interest rate on advances given for building a house, buying a house or flat or repaying home loans taken from banks by 80 basis points i.e. 0.8 per cent. Under this, the bank’s home loan interest rate for building advance has been reduced from 7.9 per cent to 7.1 per cent. This deduction has been made from 1 April 2022 to 31 March 2023.
Under this, central employees can now fulfill their dream of owning a house by taking a home loan from the bank at a cheaper rate, the employees can pay this amount in installments by taking advance. It has been said in the office memorandum issued by the Ministry of Housing and Urban Affairs that Till March 31, 2023, now central government employees can take advance at 7.1 percent interest rate per annum.
These will be the rules
- According to the recommendations of the 7th Pay Commission and the House Building Advance (HBA) Rules 2017, central government employees can take an advance of up to 34 months on their basic pay or up to a maximum of Rs 25 lakh.
- This advance will be available to both permanent and temporary employees. Temporary employees should have 5 years of continuous service.
- Central government employees will get advance from the same day they have taken loan from bank or other financial institutions.
- HBA Utilization Certificate has to be submitted within one month from the release of advance for bank-repayment.
- Apart from this, advance can also be taken on the basis of the cost of the house or the capacity to repay the loan.
The scheme started in 2020
Tell that the central government gives House Building Advance to the central employees, in this the employee can take advance to build a house on his own or his wife’s plot. This scheme started from 1 October 2020 and under this, till 31 March 2023, the central government gives house building advance to its employees at 7.1 percent interest rate.
