The Centre offers House Building Advance (HBA) to help central government employees who want to construct their own house. At present, Central Government Servants (CGS) need to pay 7.9% interest o HBA provided they avail the benefit before March 31, 2022. Keeping 7th pay commission pay matrix and 7th CPC approval provisions in focus, the Center has already updated the HBA guidelines for the CGS
Ministry of Housing & Urban Affairs Housing-III issued an Office Memorandum (OM) in this regard and said that, “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% interest on the advance.
Worth mentioning here is that HBA can be availed for buying a plot and constructing a house on the plot it. However, the plot must be registered in his/her own name or in the name of his/her spouse. In case the plot is jointly owned by the employee and his/her spouse then also HBA can be availed.
As per the rules, HBA can be availed for remodeling of the existing house 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.