In the current economy, housing could end up daunting anyone who dreams of it. With soaring prices of properties, one would ideally delay any immediate plans of owning a house. However, the Central Government has acknowledged the plight of the people, has decided to lower the House Building Advance scheme interest rate on the HBA interest rate from 8.5% to 6.64%.

The Central government had earlier revised the House Building Advance rules for Central government employees incorporating the accepted recommendations of the 7th Central Pay Commission or the 7th CPC. 

Furthermore, the Union Government has even revised the loan amount and some more rules under the HBA scheme. 

House Building Advance Scheme 2021

The House Building Advance scheme interest rate will be linked to the 10-year G-sec yield on the amount of advance taken for building the house. As of now, the rate of interest on House Building Advance is at 8.50% of Simple Interest. As of September 14, 2019, the 10-year G-sec yield stands at 6.64% for the Central government employees. 

House Building Advance 2021 Eligibility Criteria

Here are the criteria to avail of the benefits of the scheme

  1. All permanent government employees.
  2. All other employees with at least 5 years of continuous service, provided they do not hold permanent appointment under the state government and the sanctioning authority is satisfied with their likely retention in service till the house is built and mortgaged.
  3. Members of All India services deputed for service under the Central government.
  4. company/Company/Association/Body of individuals whether incorporated or not, which is wholly or substantially owned or controlled by the Central Government or an International organisation and autonomous body not controlled by Government or Private Body.
  5. Employees of Union Territories and North East frontier agency.
  6. Staff/Artistes of the All India radio who fulfil the condition prescribed as point 2 above and have been appointed in long term contracts extending to the age as per extant rules.
  7. Central government employees governed by the Payment of Wages Act, 1936.
  8. The central government employees on deputed to another Department or on Foreign service. Such cases will be processed by the Head of the Office of the Parent Department.
  9. Extant rules for eligibility conditions of ex-servicemen and of central government employees under suspension remains unchanged.

Benefits of the House Building Advance 2021