Join WhatsApp Group Join Now
Join Telegram Group Join Now

House building advance- HBA Interest Rates

BM web
House building advance- HBA Interest Rates. For central employees, there is continuous happiness after September. Now the employees have got another big good news. Modi government has made a big announcement for central employees. Now employees (Central Govt Employees) can get advance at a cheap rate to build their own house. For that, the government has reduced the interest rates of house-building advances. The interest rate of home loans received as house building advances has been reduced from 7.9 percent to 7.1 percent. Its official memorandum has been issued. About 47 lakh employees are getting benefits from this decision of the government.
House building advance- HBA Interest Rates

The benefit will be available till 31 March 2023

The benefit of reduction in the rate of house building advance will be applicable till 31 March 2023. Under this, the interest rate of advance given to an employee for building a house, buying a flat, or buying a house in resale has been reduced by 80 basis points i.e. 0.8 percent. Now employees can take an advance at this interest rate till 31 March 2023. The Ministry of Housing and Urban Affairs has released an official memorandum regarding it. Under this decision of the government, the employee can now build a house cheaply.

An advance of up to 25 lakh rupees is available

Under this special scheme provided by the government, the central employees can take two types of advance i.e. up to 34 months according to their basic salary or up to a maximum of 25 lakh rupees. An amount can be taken as an advance from the cost of the house or the ability to pay, whichever is less for the employees.

What is an HBA?

All the employees of the Center get the facility of House Building Advance from the Central Government. In it, the employee can take an advance to build a house on a plot in his or his wife's name. The scheme started on 1 October 2022 and is under it till 31 March 2023, the central government is giving house-building advances to its employees at a 7.1 percent interest rate.


(i) All permanent Govt. Servants. (ii) Temporary officials with at least 10 years of continuous service. Former military service of Ex-servicemen re-employed will be reckoned for counting the minimum period of 10 years of service. (iii) Members of AIS (IAS, IPS) deputed for service under Central Govt. (iv) Central Govt. Servants on deputation to other departments.


(i) The official should not have availed of any loan or advance for the purpose from any other Govt. source. (ii) The official or spouse or minor child should not already own a house in the town/urban limit where the house/flat is proposed to be built/acquired on HBA. (iii) The title to the land should be clear. (iv) HBA for ready-built houses/flats is permissible for outright purchase only. (v) When husband and wife are in Govt. a job, one of the spouses can apply for HBA. (vi) Only one HBA is permissible during the entire service. (vii) House purchased on HBA should be used for residential purposes only.

What does house building advance mean?

The 7th CPC House Building Advance provides affordable interest rates and rebates if certain conditions are fulfilled. There are different interest rates for different slabs of loans. There is also a maximum admissible amount and specific rules. The interest rate of House Building Advance (HBA) to Central Government employees has been reduced for the financial year 2022-23. Based on the 10-year G-Sec yield, the government sets the interest rate of House Building Advance (HBA). The Ministry of Housing & Urban Affairs has set the interest rate of House Building Advance (HBA) to Central Government employees at 7.1 percent for advances available from April 1, 2022, till March 31, 2023.

What is the interest rate of house building advances?

III dated 09.11. 2017 regarding House Building Advance Rules (HBA) - 2017, the rate of interest on House Building Advance to Central Government Employees will be @7.1% for FY 2022-23 starting from 1st April 2022 to 31st March 2023.


1) The entire amount of HBA together with interest is repayable in 20 years, with 180 monthly installments for principal and 60 installments for interest. The official can, however, elect to repay in a shorter period than that agreed to.

Amount of Advance

i. Only one advance shall be sanctioned to the government servant during his/ her entire service. 

ii. The maximum amount of advance shall be 

a) 34 months basic pay subject to a maximum of Rs. 25.00 lakhs only (Rs. Twenty-five lakhs). or cost of the house/flat, or the amount according to repaying capacity, whichever is the least for the construction/purchase of a new house/flat. 

b) For the expansion of the existing house, the amount of HBA will be limited to 34 months of basic pay subject to a maximum of Rs.10.00 lakhs only (Rs. Ten lakhs), or the cost of the expansion, or the amount according to repaying capacity, whichever is the least. 

c) The amount of the advance shall be restricted to 80% of the true cost of the land and construction of the house or the cost of expansion of living accommodation in the case of construction in rural areas. This can be relaxed and 100% can be sanctioned if the Head of the Department certifies that the concerned rural area falls within the periphery of the town or city. 


Post a Comment

Post a Comment (0)