7th Pay Commission Latest News Today: As per the 7th Pay Commission’s recommendations, the HBA facility is offered to employees working at the Central Government.
7th Pay Commission Latest News Today: The Central Government employees who are eligible for House Building Advances (HBA), here comes a big update for you. From the new financial year, the Centre is likely to increase the interest rates on HBA for them, a report by News18 stated.
At present, the HBA is subject to an interest rate of 7.1%. In an office memo on April 1, 2022, the Ministry of Housing & Urban Affairs had lowered the rate of interest on HBA to 7.1% till March 31, 2023. However, as the new financial year begins from March, the interest rate on HBA is likely to be increased, the report stated.
As per the 7th Pay Commission’s recommendations, the HBA facility is offered to employees working at the Central Government.
The HBA regulations say that the Central government employees are eligible for HBA for things, including building a new home, buying a plot for a home, expanding their living space and buying pre-built homes or apartments from housing boards, development authorities, registered builders, etc.
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Even after starting the construction work, the HBA can be paid back for loans or advances obtained from the government, HUDCO or private parties.
As per the 2017 House Building Advance Rules (HBA), the Central government employees are eligible for up to 34 months of basic salary with an HBA cap of Rs 25 lakh. They will only be able to get the lowest amount as HBA if the cost of the house or apartment is less than Rs 25 lakh.
The government employees are eligible for 34 months of basic pay under this clause, up to a maximum of Rs 10 lakh, or the total cost of expansion up to Rs 10 lakh.
