Yes!!! You all heard that right. The employees working in central government departments can now get home loans of up to 25 lakhs from the government under House Building Advance (HBA) Scheme. Earlier, it was just 7.5 lakhs. Not just home loan, they will be charged with a rate of interest of only 8.5% instead of 9.5%.
The change in rules was declared by the Ministry of Housing and Urban Affairs on Thursday. Apart from this, if both spouses are central government employees, they are eligible to take benefits of HBA scheme, either jointly and separately. Before this, only one of the spouses were entitled to avail it.
There are more than 50 lakhs central government employees in the country, who will get benefited with the HBA scheme. These modifications were rendered by the 7th Pay Commission to boost the stagnant real estate market of the country and it can see much-needed sunshine.
Employees will now be able to get housing advance loan equal to their 34 months basic salary and it can reach as high as up to 25 lakhs. Far this was limit was just ₹7.5 lakhs. If an employee wants to expand or renovate the house, then he can now get an advance of up to 10 lakhs. Before the implementation of House Building Advance Scheme, this limit was only restricted up to ₹1.8 lakhs.
According to the statement given by the Ministry of Housing and Urban Affairs, the limit for the construction and purchase of cost ceiling from ₹30 lakhs to ₹1 crores, with a special provision of around 25% of the upward revision in some special cases.
The central government has also fixed the interest rate on House Building Advance Scheme to 8.5%, which was varying from 6% to 9.5% for the loan amount of ₹50,000 to ₹7.5 lakhs.