House Building Advance-enhancement in past cases-regarding


No.I-17011/2(1)/2009-H.III
Government of India
Ministry of Urban Development
(Housing -III section)
*****
Nirman Bhawan, New Delhi.
Dated:- the 14th July, 2010

OFFICE MEMORANDUM

Subject:     Interest bearing advances/Sixth Central Pay Commission recommendation on House Building Advance-enhancement in past cases-regarding.

       The undersigned is directed to invite attention to this Ministry’s O.M. No.I-17011/2(1)/2009-H.III dated 27th November, 2008 on the above subject and to say that it has been decided in consultations with Ministry of Finance to make the afore-said orders applicable with effect from 1st January, 2006. Accordingly, an enhancement of House Building Advance, if applied for, may be granted for an amount equivalent to the difference between the previously sanctioned amount and the new amount determined on the basis of pay in the pay band, in past cases, where HBA was sanctioned on or after 1-1-2006 but before 27-11-2008 subject to complying following conditions:-

(a)       The Government servant should not have drawn the entire amount of HBA sanctioned under earlier orders and /or where construction is not completed/full cost towards acquisition of house/flat is yet to be paid.

(b)       There will be no deviation from the approved plan of construction on the basis of which the original sanction of House Building Advacne was accorded. The revised cost of the original plan can, however, be considered for determining the additional amount, subject to the prescribed maximum limits.

(c)       Supplementary Mortgage Deed, Personal Bond and Sureties will be drawn and executed at the expense of the loanee.

(d)       The actual entitlement will be restricted to the repaying capacity computed on the basis of the formula laid down in this Ministry’s O.M. No.I-17015/16/92-H.III. dated 17.10.2000. It should be ensured that the entire amount of advance with interest is recovered before retirement of the Government servant.

(e)      Rate of Interest: The rate of interest chargeable in such cases would be as per the slab applicable to the total sanctioned amount i.e. amount already sanctioned on or after 1-1-2006 but before 27.11.2008 plus the enhanced sanction. However, the new rate of interest would be chargeable only on collective amount that would remain outstanding on grant of enhancement so granted. Thus, the amount of HBA that has already been re-paid on old rates will not attract the fresh interest charges.

2.      However, the existing limit of maximum admissible amount of Rs.7.50 lakh for the purpose of construction/purchase of new house/flat and Rs.1.80 lakh would remain unchanged. In other words, the sum total of previously sanctioned HBA and the enhancement granted under these orders cannot exceed the aforesaid limits. In any case, not more than one enhancement is admissible to a Govt. employee.

3.       The applications for enhanced HBA should be submitted within six months from the date of issue of this order.

4.      Ministries/Departments whose branch offices are situated in the far flung areas like in case of Ministry of Defence, etc., are advised to give wider publicity to these orders through modern communication mean like facimile e-mail, web-sites etc. so that there is no occassion for any representation for extending the time limits of six months on the grounds of receiving these orders late.

s/d
(V.K. Gupta)
Deputy Financial Adviser

Interest Rates for House Building Advacne to Central Government Employees

 

Interest Rates for House Building Advance to Central Government Employees

Concessional interest to employees for promoting Small Family Norm :-

The rate of interest will be half per cent less for an employee who undergoes sterilization.

The advances carry simple interest from the date of payment of the first instalment and is calculated on the balance outstanding on the last day of each month. No interest is chargeable beyond the date of retirement/death of the government servant.

 

Amount of Loan sanctioned

From 16.12.1997 to 31.3.2001

From 1.4.2001 to 31.3.2002 /td>

From 1.4.2002 to 31.3.2003

From 1.4.2003

Up to Rs.50,000

7.5%

6.5%

6.0%

5.0%

Rs.50,001 to Rs.1,00,000

9.0%

8.0%

7.5%

6.5%

Rs.1,00,001 to Rs.1,50,000

9.0%

8.0%

7.5%

6.5%

Rs.1,50,001 to Rs.2,00,000

11.0%

10.0%

9.5%

8.5%

Rs.2,00,001 to Rs.2,25,000

11.0%

10.0%

9.5%

8.5%

Rs.2,25,001 to Rs.5,00,000

11.0%

10.0%

9.5%

8.5%

Rs.5,00,001 to Rs.7,50,000

12.0%

11.0%

10.5%

9.5%