7th CPC latest news: The basic interest rate charged on this HBA is 7.9 per cent and the benefit will remain available till 31st March 2022
7th pay commission latest news: With an aim to help central government employees who want to construct their own house, center is offering House Building Advance (HBA) benefit to all central government servants (CGS). The basic interest rate charged on this HBA is 7.9 per cent and the benefit will remain available till 31st March 2022. Keeping 7th pay commission pay matrix and 7th CPC approval provisions in focus, center has already updated the HBA guidelines for the central government servants.
Ministry of Housing & Urban Affairs Housing-III issued Office Memorandum (OM) in this regard and said, "Regarding House Building Advance (HBA) — 2017, the rate of interest on House Building Advance to central government employees will be @7.90% from 1st October 2020 to 31st March 2022 i,e,. for 18 months." So, those central government employees who have availed HBA benefit from 1st October 2020 will also get benefit of this order as they will also pay 7.90 per cent basic interest on the advance.
Speaking on the HBA rules Shiva Gopal Mishra, Secretary — Staff Side at National Council of JCM said, "HBA can be claimed for buying a plot and constructing house on it. It can be claimed by a central government employee for constructing house on a plot registered in its name or in the name of its spouse or in case the plot is jointly owned by the employee and its spouse." He said that HBA can be availed for remodeling of the existing accommodation as well but the house has to be owned by the employee, its spouse or by both.
Central government employees, who have taken home loan from banks and other lending institutions, can also get this benefit provided they fulfill the terms and conditions in regard to HBA.