7th Pay Commission/HBA Interest Rates: Central employees have got great news before DA hike. The government has made a big announcement for the central employees. The interest rate on the building advance (HBA) given to the employees (Central Govt Employee’s) for building a house i.e. home loan taken from the bank has been reduced from 7.9 percent to 7.1 percent. The government has also issued an office memorandum for this. The employees will get big benefits from this decision of the government.
Under this decision, the government has given a big gift to the employees, from April 1, 2022 to March 31, 2023, to repay the home loan taken from the bank to the employees to build a house, buy a house or flat. The interest rate has been cut by 80 basis points i.e. 0.8 percent. That is, now the dream of the employees of their own house will become even easier. Employees can now avail this interest rate till 31st March 2023.
Know how much interest will be charged on the advance received by the employees,
the Ministry of Housing and Urban Affairs has issued an office memorandum and informed about the reduction in the interest rates of advance. After this announcement of the government, employees can now take advance at the rate of 7.1 percent per annum till March 31, 2023, which was earlier at 7.9 percent per annum. Under the decision of the government, employees can now build houses cheaply.
Employees can take up to Rs 25 lakh in advance, now the question is, how much advance can you take? Let us tell you that under this special facility given by the government, central employees can take advance in two ways i.e. up to 34 months or up to a maximum of Rs 25 lakh according to their basic salary. Also, out of the cost of the house or its ability to pay, whichever is less for the employees, that amount can be taken as advance.
Know what is HBA?
It is worth mentioning that the Central Government gives House Building Advance to its employees. In this, the employee can take advance to build a house on a plot taken in the name of himself or his wife. This scheme was started from 1 October 2020 and under this, till 31 March 2023, the central government gives house building advance to its employees at the rate of 7.1% interest.
