House Building Advance (HBA) is given to Central Government Employees, according to the 7th Pay Commission’s recommendations. Up until March 31, 2023, employees can take advantage of HBA at a rate of 7.1%. This article examines HBA eligibility, purpose, cost cap, advance amount, calculation of repayment capacity, and HBA recovery process.
Why is the benefit of House Building Advance provided to central government employees? Let’s take a look at the benefits that they are entitled to under this:
Building a new home, either jointly or separately, on the employee’s or their spouse’s property.
Acquiring and building a home at a site.
Acquiring a house by membership in cooperative group housing societies, or purchasing a plot of land under cooperative schemes for building a house or apartment.
House purchase or building funded through self-financing programs in Delhi, Bangalore, Uttar Pradesh, Lucknow, etc.
Purchase of a new ready-to-move house or flat from Housing Boards, Development Authorities and other statutory or semi-Government bodies, and from registered builders i.e., registered private builders, architects, house building societies, etc. Under HBA, a central government employee can purchase ready-to-move houses or flats from private individuals.
In any case, the employee needs to expand his or her living accommodation of an existing house owned by the employee or jointly with a spouse.
Cost Ceiling
As per House Building Rules, the cost of the house to be built or purchased by the employee should not exceed 139 times the basic pay of the employee, subject to a maximum limit of Rs 1 crore. This limit is exclusive of the cost of the plot, flat, or ready-to-move house.
Eligibility
HBA is allowed only for permanent employees of the Central Government. In case both spouses are central government employees, then HBA services are eligible — either jointly or separately. HBA is also admissible for some other central government categories of employees.
You can check details here:
https://mohua.gov.in/pdf/5a05336ac28f7HBA%20Rules%202017.pdf
A central government employee can avail of only one advance during his/her entire service. The maximum amount that can be taken as House Building Advance will be 34 months of basic pay subject to a maximum limit of Rs 25 lakh only. For the expansion of the existing house, the amount of HBA is limited to 34 months of basic pay subject to a maximum limit of Rs 10 lakh. Similar conditions are imposed depending upon the needs of the employees.
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