New Delhi: Recently, the government gave a big relief to the employees. In view of the rising inflation, the government also increased the dearness allowance of the employees.
Now the government has taken another big decision, which will give more benefits to the employees. With this decision, the employees will get a chance to fulfill their dream of building their own house. In fact, the Modi government has cut 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, or 0.8 percent.
The benefit of this deduction made by the government can be taken only from 1 April 2022 to 31 March 2023. Let us tell you that earlier this rate was 7.9 percent per annum, but now it has been cut by 80 basis points i.e. 0.8 percent. Accordingly, central government employees can take advance at the rate of 7.1 percent per annum, which has been done only till March 31, 2023.
You can take advance up to 25 lakhs:
As per the recommendations of the 7th Pay Commission and the House Building Advance (HBA) Rules 2017, central employees can take an advance for construction or purchase of a house which is paid at simple interest. Whereas banks give home loans at compound interest.
According to this rule, central employees can take advance according to their basic pay for 34 months or up to a maximum of Rs 25 lakh. Apart from this, you can take the amount of money in advance whichever is less than the cost of the house or its ability to pay.
Bank’s home loan can be paid in advance:
Central employees can also repay the home loan taken from the bank for building a house or buying a flat or house. This advance can be taken by both permanent and temporary employees. But in case of temporary employees, the job should be for five consecutive years.
Center employees can take advance from the same day they have taken loan from bank or other financial institutions. The HBA Utilization Certificate has to be submitted within one month of the issue of advance for bank-repayment.
