According to the recommendations of the 7th Pay Commission and HBA (House Building Advance) rules, central government employees for construction of a new house or purchase of a new house-flat for 34 months basic salary, maximum Rs 25 lakh or the cost of the house Or you can take advance of the amount whichever is less from the ability to repay the advance. Simple interest will be charged on the advance at the rate of 7.9 per cent.
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Advance of maximum ten lakhs for expansion of house
According to the House Building Advance Rules, for the extension of the house, an advance of a maximum of ten lakh rupees or the basic salary of 34 months, the cost of the expansion of the house or the ability to pay the advance, whichever is less, can be taken. The amount taken in advance will be recovered as principal for the first 15 years or 180 months. In the remaining five years i.e. 60 months, it will be recovered in EMI as interest. Simple interest will be charged on the advance at the rate of 7.9 per cent.
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Home loan taken from bank can be paid by taking advance
You can also repay the loan taken from the bank to build a new house or to build a flat or house by taking advance. This advance will be available to permanent as well as temporary employees. But the job of temporary employees should be for five consecutive years. Employees will get house building advance from the day they have taken loan from banks and other financial institutions. Even if you have applied for advance for building a house earlier, but this amount will be available from the day you have been given the loan. Advance for bank-repayment will be given in lump sum. However, the employees will have to submit the HBA Utilization Certificate within one month from the date of issuance of advance.