7th Pay Commission: The central government has given a big gift to some employees of the defense sector. In fact, Defense Services Personnel of the Indian Army, Navy and Air Force are now eligible for House Building Advance (HBA).
According to a media report , the existing scheme of HBA has been further liberalized after considering the recommendations of the 7th Pay Commission and other relevant factors. A notification has also been issued in this regard.
What is the limit: In case of purchase/construction of a new house/flat, the employees will get 34 months’ basic salary, subject to a maximum of Rs 7 lakh, or an amount as per the cost of the house/flat or repayment capacity.
Extension of existing house: 34 months’ basic salary of the employee can be given, subject to a maximum of Rs 6 lakh or equal to the cost of the extension.
Limit on the cost of the house: The cost of the house to be constructed/purchased (excluding the cost of the plot) should not exceed 139 times the basic pay of the employee, subject to a maximum of Rs.60 lakhs.
How to pay: The advance amount for the purchase of a ready house can be paid in lump sum. Advance for purchase/construction of new flat may be paid in lump sum or in convenient installments at the discretion of the Head of the Department. For the financial year 2017-18 onwards, the interest on Housing Building Advance will be 8.50%. Explain that the facility of house building advance is available to the central government employees. Under this, employees can take money advance at low interest. However, for this it is necessary to fulfill certain conditions.
