House Building Allowance|House Building Advance|Rules|Form|Interest Rate Calculator
Under 7th Pay Commission
Indian Government has always been come up with many housing development schemes for the people of this country. In last few months The GoI has started many housing development projects and schemes across the country for the countrymen. Not only for the common people but from early years government has taken so many initiatives for their employees as well. The House Building Allowance and Advance scheme is one such initiative taken for the government’s employees across the country. Under this scheme, a government employee (either state or central) can get a loan to build his / her own house or flat or living space. There will be much lesser interest rates to be paid for the advancement than the market rate.
House Building Allowance Rules, Eligibility
To get the house building allowance one needs to fulfil following eligibility criteria.
- The main criterion is the person needs to be a permanent employee under state or central government.
- If the person is not a permanent but a temporary one, then he / she needs to provide at least 10 years of service before applying for the HBA.
- The HBA will be provided to the employees once in their entire service life.
- If both the husband and wife are working under governmental organisation and are equally eligible for the HBA then as per the rules of HBA only one of them will get the allowance for building the house.
There are several rules and regulations under the HBA scheme. Some of the rules are as follows
House Building Allowance Application Form
- The ownership of the land or house must be transparent. The ownership title should be on the employee’s name or spouse’s name.
- The applicant or his / her spouse should not own house, flat or any land while applying for the HBA. If they have a minor and the minor has ownership of any house or land then also the person will not be eligible to apply for the loan.
- The loan or advances can be used to build a house, flat or living space or a land on which the house will be built.
- Only government employees (permanent or temporary with 10 years’ service) will get the allowance.
- A 12 pages application form needs to be filled up and submitted to apply for the HBA. The application form is available online and offline as well. Details such as name, address, designation, branch, pay band, DA, special allowance, date of birth and many other are needed to enter. The form consists of different categories for the purpose of allowance such as buying a plot or building a house or repairing a house etc.
House Building Allowance For Central government employees
HBA is specially introduced for the government employees only. People who work under state government or central government are eligible for the house building advance. The interest rate, repayment time and the loan amount all are much more relaxed than that of other market housing loans. If the government employee (either state or central) is a permanent employee, he/she will get the advance easily at any time of service. But if the applicant is a temporary employee then he/she must have provided at least 10 years’ of service before applying for the house building advance.
After 7th CPC these rules can be changed as the authority proposed to reduce the time span to 5 years from 10 years for the temporary employees. Also if both the spouses are working under the government then both should have received the advance.
House Building Advance Rules, Form
The rules are same as House Building Allowance for Advance. The application form for HB Advance is widely available in commercial banks and also one can download and submit them online.
House Building Advance Seniority list
Seniority list under HBA is the list of senior applicants who have registered for the advance. The revised and state wise list is available in online. To get the list of senior registered applicants follow the link
House Building Advance Interest rates
As mentioned the interest rate for this house building advance is much lesser for the government employees than the market rate. The interest rates are as follows
- For the amount of Rs. 50, 000/- and below, the rate of interest will be 6% for the employees
- For the amount of Rs. 1, 50, 000/- and below, the rate of interest will be 6.5% for the employees
- For the amount of Rs. 5, 00, 000/- and below, the rate of interest will be 8.5% for the employees
- For the amount of Rs. 7, 50, 000/- and below, the rate of interest will be 9.5% for the employees
The maximum amount of advance under this scheme is Rs. 7, 50,000/- which is also said to be changed after 7th CPC, as t was too less to build a house today.
House Building Advance Interest rate calculator
The interest rate is given above. According to this rate the interest and loan amount is being calculated. For instance if an employee draws salary of Rs. 5,000/-, he/she will be able to receive HBA of Rs. 1, 70, 000/- (34 times of pay scale). As mentioned, the rate of interest above Rs. 1, 50, 000/- is 8.5%. So the applicant has to pay 8.5% per annum on Rs. 1, 70,000/-.
HBA – at a glance
|Eligibility||Government employee (permanent & temporary)
For Temporary employee: Years of service-minimum 10 years. For permanent employee: anytime of service.
|Interest rate||Minimum 6% and maximum 9.5%|
|Purpose||Building houses, buying plots for house, Repairing existing houses|
|Amount||34 times of basic pay scale of applicant|
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