This scheme was started from 1 October 2020 and under this, till 31 March 2022, the central government was giving house building advance to its employees at the rate of 7.9% interest, which has now been reduced further.
Central government employees can now take advantage of House Building Advance at a reduced interest rate of 7.10 per cent till March 2023. The central government has reduced the interest rate on house building loans from 7.9 percent to 7.1 percent. In an office memorandum issued by the Ministry of Housing and Urban Affairs on April 1, 2022, the housing construction advance interest rate for a central government employee in the financial year 2022-23 will be 7.1 percent. Let us inform that till March 2022, the central government employees used to get house building advance at the rate of 7.90 per cent per annum.
Said this thing about HBA
The Central Government has announced relief on House Building Advance (HBA) to the employees. The Office Memorandum of the Ministry of Housing and Urban Affairs said, “It is directed to say that in partial amendment of this Ministry’s OM..Regarding House Building Advance Rules (HBA) – 2017 dated 09.11.2017, The rate of interest on House Building Advance to Central Government Employees will be at the rate of 7.10 per cent for the financial year 2022-23 commencing from 1st April 2022 to 31st March 2023.
The House Building Advance for Central Government employees was available at a simple interest rate of 7.9 per cent till March 31, 2022. Hence, the interest rate on the latest House Building Advance announced by the ministry is a big relief for the central government employees as the interest rate has increased. There has been a decline of 80 bps in FY23.
What is HBA?
Let us tell you that the government gives house building advance to its employees. In this, the employee can take advance to build a house on his own or his wife’s plot. This scheme was started from 1 October 2020 and under this, till 31 March 2022, the central government was giving house building advance to its employees at the rate of 7.9% interest, which has now been reduced further.
