Now you can take a loan up to Rs 25 lakh from the government to make your dream of owning a house come true. And if both husband and wife are in government jobs, then this benefit can be doubled, i.e. total loan up to Rs 50 lakh! This low interest rate loan can be used to buy or construct a house, repay an old loan or expand the house. Come, let us know about this wonderful scheme in detail.
What is House Building Advance Scheme?
This is a special scheme of the Central Government, which provides loans at low interest rates to government employees so that they can build or buy their dream house. The objective of this scheme is that every government employee gets his own permanent house and can fulfill his dreams without financial burden.
How much loan will I get and for what purposes?
House Building Advance (HBA) Under the scheme, central government employees can take a maximum loan of Rs 25 lakh. The interest rate on this loan is only 7.44% per annum, which has been fixed for the financial year 2025-26. The special thing is that any employee can avail the benefit of this scheme only once in his entire career. But if both husband and wife are in government jobs, then both can apply separately and take a loan of Rs 25 lakh each, i.e. a total of Rs 50 lakh.
This loan can be used for many types of purposes. You can build a new house on land in your name or jointly owned with your spouse. Apart from this, this loan can also be taken for purchasing a plot and constructing it. Even if you want to buy a new house or flat from a government or recognized builder, this scheme is also helpful for you. If you already have a house and want to expand or repair it, you can get a loan up to Rs 10 lakh for this. Not only this, this scheme can also be availed to repay the home loan already taken with certain conditions. That means this scheme is beneficial for government employees in every way.
Who can take benefit of this scheme?
House Building Advance The benefit of the scheme is available to those Central Government employees who fulfill certain conditions. All permanent government employees are eligible for this. Apart from this, those temporary employees who have worked continuously for at least 5 years can also apply. Officers of All India Services like IAS, IPS, IFS also come under the scope of this scheme. Employees working in Union Territories and officers working on deputation can also take advantage of this scheme. The special thing is that even if an employee is under suspension, he can avail the benefit of this scheme by giving the necessary security. The government has ensured that employees get assistance even in difficult circumstances.
How will eligibility be determined?
In HBA scheme, the loan amount is decided on the basis of the monthly basic salary of the employee. This amount can be 34 times the basic salary or a maximum of Rs 25 lakh, whichever is less. A maximum loan of up to Rs 10 lakh can be availed for expansion or repair of the house. Non-Practicing Allowance (NPA) and family pension are also added to the basic salary, due to which the chances of employees getting more amount increases. The total cost of the house (except land cost) should not exceed 139 times the basic salary of the employee or Rs 1 crore, whichever is lower. If needed, departmental heads can give relaxation of up to 25% in this limit so that the employees can get more help.
Loan repayment and insurance terms
The total repayment period of HBA loan is 20 years. For the first 15 years, the employee has to pay installments of the principal amount, and in the next 5 years only interest has to be paid. This system has been made so that there is not much burden on the employee's pocket. Also, under this scheme it is necessary to insure the house or flat. This provides protection in case of any unexpected loss. If insurance is not done, the government may increase the interest rate by an additional 2%. This rule has been made to make employees aware of the security of their home.
How to get double benefit for husband and wife?
If both husband and wife work in the Central Government, then both can apply for HBA separately. That means both can get a loan of Rs 25 lakh each, which can provide total help of up to Rs 50 lakh. With this they can fulfill their dream of buying a bigger and better house.
how to apply?
To apply for HBA you need to register with your department. Drawing and Disbursing Officer (DDO) Or you will have to contact the accounts office. From there you will get the application form, which has to be filled correctly and submitted along with the required documents. Now the facility of online application has also started in many departments, through which you can apply sitting at home. This saves both time and effort. You can apply offline or online as per your convenience.
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