Posts Tagged ‘House Building Advance’

Clarifications regarding House Building Advance

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Clarifications regarding House Building Advance

1-17011/6(3)/13/2018-H.III
Government of India
Ministry of Housing & Urban Affairs
Housing-III Section

Nirman Bhawan, New Delhi,
Dated: 1.08.2018

OFFICE MEMORANDUM

Subject: Clarifications regarding House Building Advance – reg.

The undersigned is directed to say that in partial modification to the Ministry of Housing & Urban Affairs OM No. 1.17011/11(4)/2016-H.III dated 09.11.2017 regarding House Building Advance Rules – 2017, the competent authority has approved to modify the provision of para 2(i) in place of the existing provision.

“Constructing a new house on the plot owned by the employee or the employee and the employee’s wife/husband jointly with the clear title of the plot”

All the other existing provisions in the said OM of even no. dated 09.11.2017 shall remain same.

(Shailendra Vikram Singh)
Director (IFD)
Tel:011-23062798

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7th CPC – Grant of House Building/Marriage/Vehicle/Computer Advance to Haryana Government Employees

7th CPC – Grant of House Building/Marriage/Vehicle/Computer Advance to Haryana Government Employees

Government of Haryana
Finance Department

ORDER

No.2/2/2004-WM(3)

Dated 18th July,2018

Subject: Grant of House Building/Marriage/Vehicle/Computer Advance to Haryana Government Employees.

Whereas, the eligibility limit of pay and admissibility for the purpose of grant of House Building, Marriage,Vehicle and Computer Advance were revised vide Finance Department’s letter No.2/2/2004-WM(3) dated 22nd November,2010, no.38/110/99-WM (5) dated 22nd November,2010, No.16/1/10-WM (6) dated 16th July,2010 and no.2/2/2007-WM (5) dated 22nd November,2010, respectively, Now, as per recommendations of 7th CPC, pay scales of state government employees have been revised. Accordingly, the question of enhancing the present eligibility limit of pay and admissibility for the purpose of grant of all types of Advances (House Building/Marriage/Vehicle and computer Advance) has been considered and it has been decided as under:-

Advances to Haryana Government Employees

(A)House Building Advance

(i) Only one advance shall be sanctioned up to Rs.25 lakh (Rs.Twenty five lakh only) to the Government employees in his/her entire service.

(ii) HBA will be given to only one person (either Husband or Wife)

(i) For Construction of House/Purchase of Built up house allotted by the govt. agencies or any other registered society/through private sources 34 Months basic pay, in any pay Matrix, subject to a maximum ceiling of Rs.25.00 lakh (Rupees twenty five lakh), whichever is less, for construction of House/Purchase of Built up house allotted by the govt. Agencies or any other registered society or through private source.
(ii) For the purchase of plot 60% of the total admissibility of House Building Advance i.e. 20 months basic pay, in any pay matrix, subject to maximum of Rs.15.00 lakh (Rupees fifteen lakh) thereafter, remaining admissible amount subject to the maximum of Rs.10.00 lakh can be granted for construction of House on the same plot.
(B) House Building Advance For extension of House/repair of House
(i) For extension of House (i) 10 Months basic pay, in any pay matrix, subject to a maximum ceiling of Rs.5.00 lakh (Rupees Five lakh)(ii)Advance for the extension of house, in cases where any house building advance has not been obtained from Government earlier, may be allowed after the expiry of three years from the date of purchase of house or taking possession thereof, whichever is later.

(iii) In the case of employees, who had taken a House Building Advance earlier from the Government, this advance may be allowed after five years of the start of the drawal of the earlier advance.

(ii) For repair of House (i) 10 Months basic Pay, in any pay matrix, subject to a ceiling of Rs.5.00 lakh (Rupees five lakh)(ii)Advance for the repair of house, in cases where any Hours Building Advance has not been obtained from Government earlier, may be allowed after the expiry of five years from the date of purchase of house or taking possession thereof, whichever is later.

(iii) In case of employees, who had taken a House Building Advance earlier from the Government, this advance may be allowed after seven years of the start of the drawls of the earlier advance

Second House Building Advance Second House Building Advance will not be allowed.
(C)Marriage loan
(i)(i) 10 Months basic Pay, in any pay matrix, subject to a ceiling of Rs.3.00 lakh (Rupees three lakh), whichever is less, for the marriage of their sons/daughters/dependent sister(s) and marriage of the employee concerned.(ii)This loan is available for two times only in entire service.

(iii) Rate of interest shall be equal to that of GPF.

The second advance will be available at the same rate of interest prescribed for first marriage advance by the state Government

(D) Vehicle Loan
(i) Car Loan (i) Government employees drawing revised pay of Rs.45,000 & above, in any pay matrix shall be eligible for this advance.(ii)15 Months basic pay subject to a maximum ceiling of Rs.6.50 lakh (Rupees six lakh fifty thousand) or 85% of the actual price of the Motor Car, whichever is less.

(iii) Rate of interest shall be equal to that of GPF on first loan and 2% excess if drawn 2ndtime and 4% excess if drawn 3rdtime.

(iv) The 2nd& 3rd loan will be granted only after issuance of the NDC of previous loan

(ii)Motor Cycle/Scooter Loan (i)This advance shall be availed only for purchasing a new Motor Cycle/Scooter.(ii)Rs.50,000/- (Rupees fifty thousand) for Motor Cycle and Rs.40,000/- (Rupees forty thousand) for scooter or actual price of the vehicle, whichever is less.

(iii)Rate of interest shall be equal to that of GPF on first loan and 2% excess if drawn 2ndtime and 4% excess if drawn 3rdtime.

(iv)The 2nd& 3rdloan will be granted only after issuance of the NDC of previous loan

(iii) Moped Loan This advance is abolished
(iv) Cycle Loan (i)This advance shall be availed only for purchasing of a new Bicycle.(ii)Rs.4,000/- (Rupees four thousand) or actual price of Bi-cyle, whichever is less.

(iii)Rate of interest shall be equal to that of GPF.

(iv)The second and third advance will be available at the same rate of interest prescribed for first bicycle advance by the state Government.

(E) Computer Loan
(i) Rs.50,000/- (Rupees fifty thousand) or actual price of computer/laptop, whichever is less.(ii)The 2nd& 3rdload will be granted only after issuance of the NDC of previous loan

(iii) Rate of interest shall be equal to that of GPF on all advance.

Note: i.DDO may ensure that the total EMI of all advances taken by the employee should not be more than 1/3 of the total carry home salary.

ii. Property of the employee shall be mortgaged only up to the value of the loan

iii. All other existing terms and conditions of each advance as laid down by the Finance Department rules/instructions issued from time to time shall remain unchanged.

iv. These instructions shall be applicable with immediate effect, i.e from the date of issue of these instructions.

Be the first to comment - What do you think?  Posted by admin - July 20, 2018 at 9:12 am

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Grant of Advances – 7th Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants

Grant of Advances – 7th Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants

7th CPC House Building Advance

Government of India (Bharat Sarkar)
Ministry of Railways (Rail Mantralaya)
(Railway Board)

PC-VII No : 108/2018
RBE No. 101/2018

New Delhi, Dated: 13.07.2018

No. F(E)Spi./2008/ADV.J/6 (7th CPC)

The General Managers and PFAs
All Indian Railways & Production Units
(As per standard list)

Subject : Grant of Advances – Seventh Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants.

Please refer to this Ministry’s letter of even number dated 05.12.2017 on the above cited subject,vide which, the revised rules relating to the grant of House Building Advance (HBA) as issued by Ministry of Housing & Urban Affairs (Housing-III Section) vide their OM No.I.17011/11(4)/ 2016-H-III dated 09.11.2017 pursuant to acceptance of 7th CPC recommendations, were mutatis-mutandis made applicable to Railway employees.

2. Further clarifications were issued vide this Ministry’s letter of even number dated 28.03.2018 and 27.04.2018.

3. Ministry of Housing & Urban Affairs vide their OM dated 29.06.2018 have now issued instructions regarding applicability of rules contained in their OM dated 09.11.2017 with effect from 01.01.2016 and enhancement of House Building Advance (HBA) in those cases which were sanctioned on or after 01.01.2016 but before 09.11.2017 and these are subject to conditions mentioned in their letter of 29.06.2018. A copy of the same is sent herewith, which shall be applicable mutatis-mutandis on the Railways.

3. Please acknowledge receipt.

4. Hindi version will follow.

(G.Priya Sudarsani)
Joint Director Finance (Estt.)
Railway Board

Encl.: As above
No. F(E)Spi./2008/ADV.J/6 (7th CPC)
New Delhi, Dated: 13.07.2018

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Interest bearing advances/ Seventh Central Pay commission recommendation on House Building Advance – enhancement in past cases regarding

Interest bearing advances/ Seventh Central Pay commission recommendation on House Building Advance – enhancement in past cases

I-17011/11(4)/2016-H.III

Government of India
Ministry of Housing & Urban Affairs
Housing-III Section

Nirman Bhawan, New Delhi,
Dated : 29.06.2018

OFFICE MEMORANDUM

Subject: Interest bearing advances/ Seventh Central Pay commission recommendation on House Building Advance – enhancement in past cases regarding.

The undersigned is directed to invite attention to this Ministry’s OM No. I- 17011/11(4)/2016-H.III dated 09.11.2017 on the above-mentioned subject and to say that it has been decided in consultation with Ministry of Finance to make the aforesaid orders applicable with effect from 1st January, 2016. Accordingly, it has been decided that an enhancement of House Building Advance, if applied for, would be granted to government employee for an amount equivalent to the difference between the previously sanctioned amount and the new eligible amount determined on the basis of basic pay as per 7th CPC, in past cases, where HBA was sanctioned on or after 01.01.2016 but before 09.11.2017 subject to complying following conditions :

a) The Government employee 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 Advance 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 OM No I-17011/11(4)/2016-H.III dated 09.11.2017. 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 will be at 8.50% from the financial year 2017-18 onwards. This will be reviewed every three years to be notified in consultation with Ministry of Finance. However, the new rate of interest would be chargeable only on collective amount that would remain outstanding on grant of enhancement of HBA, i.e., the unpaid portion of previously sanctioned HBA plus the 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. 25 lakhs for the purpose of construction/ purchase of new house/ flat and Rs. 10 lakhs for expansion of existing house/ flat would remain unchanged. In other words, the sum total of previously, sanctioned House Building Advance and the enhancement granted under these orders cannot exceed the aforesaid limits. In any case, not more than one enhancement is admissible to a Government employee.

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

4. Ministries/ Departments with branch offices in the far-flung areas are be advised to give wider publicity to these orders through modern communication means so that there is no occasion for any representation for extending the time limit of six months on the grounds of late receipt of these orders.

5. This issues in supersession of all the earlier orders on the subject.

S/d,
(Shailendra Vikram Singh)
Director (IFD)
Tel: 23062798

To,
All the Ministries and Departments of the Government of India as per standard distribution list.

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7th CPC House Building Advance Order for enhancement in loan sanctioned on or after 01.01.2016 but before 09.11.2017

7th CPC House Building Advance Order for enhancement in loan sanctioned on or after 01.01.2016 but before 09.11.2017

I-17011/11(4)12016-H.III
Government of India
Ministry of Housing & Urban Affairs
Housing-III Section

Nirman Bhawan, New Delhi,
Dated : 29.06.2018.

Subject: Interest bearing advances/ Seventh Central Pay commission recommendation on House Building Advance – enhancement in past cases regarding.

The undersigned is directed to invite attention to this Ministry’s OM No. I-17011/11(4)/2016-H.Ill dated 09.11.2017 on the above-mentioned subject and to say that it has been decided in consultation with Ministry of Finance to make the aforesaid orders applicable with effect from 1st January ,2016. Accordingly, it has been decided that an enhancement of House Building Advance, if applied for, would be granted to government employee for an amount equivalent to the difference between the previously sanctioned amount and the new eligible amount determined on the basis of basic pay as per 7th CPC, in past cases, where HBA was sanctioned on or after 01.01.2016 but before 09.11.2017 subject to complying following conditions:

a) The Government employee 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 Advance 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 OM No I-1701/1/11(4)/2016-H.III dated 09.11.2017. 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 will be at 8.50% from the financial year 2017-18 onwards. This will be reviewed every three years to be notified in consultation with Ministry of Finance. However, the new rate of interest would be chargeable only on collective amount that would remain outstanding on grant of enhancement of HBA. i.e., the unpaid portion of previously sanctioned HBA plus the 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. 25 lakhs for the purpose of construction! purchase of new house/ flat and Rs. 10 lakhs for expansion of existing house/ flat would remain unchanged. In other words, the sum total of previously, sanctioned House Building Advance and the enhancement granted under these orders cannot exceed the aforesaid limits. In any case, not more than one enhancement is admissible to a Government employee.

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

4. Ministries/ Departments with branch offices in the far-flung areas are be advised to give wider publicity to these orders through modern communication means so that there is no occasion for any representation for extending the time limit of six months on the grounds of late receipt of these orders.

5. This issues in supersession of all the earlier orders on the subject.

Sd/-
(Shailendra Vikra Singh)
Director (IFD)

Source: http://mohua.gov.in

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7th CPC HBA – Amendment to Rules on House Building Advance

7th CPC HBA – Amendment to Rules on House Building Advance

Grant of Advances- Seventh Central Pay Commission recommendations- Amendment to rules on House Building Advance (HBA) to Railway servants

Government of India (Bharat Sarkar)
Ministry of Railways (Rail Mantralaya)
(Railway Board)

No. F(E)Spl./2008/ADV.3/6 (7th CPC)

New Delhi, Dated: 28.03.2018

The General Managers and PFAs
All Indian Railways & Production Units
(As per standard list)

Subject: Grant of Advances- Seventh Central Pay Commission recommendations- Amendment to rules on House Building Advance (HBA) to Railway servants.

Please refer to this Ministry’s letter of even number dated 05.12.2017 on the above cited subject, vide which, the revised provisions relating to the grant of House Building Advance (HBA) as issued by Ministry of Housing & Urban Affairs (Housing-Ill Section) vide their OM No.l.17011/11 (4)/2016-H-111 dated 09.11.2017 pursuant to acceptance of 7th CPC recommendations, were mutatis-mutandis made applicable to Railway employees.

2. Ministry of Housing & Urban Affairs vide their OM dated 31.01.2018 (copy enclosed) have now issued clarifications to the fulfilment of extant conditions mentioned in para-2(viii) of their aforesaid OM dated 09.11.2017, which shall be applicable mutatis-mutandis on the Railways.

3. Please acknowledge receipt.

4. Hindi version will follow.

sd/-
(G. Priyt Sudarsani)
Joint Director Finance (Estt.)

Railway Board

Source: AIRF

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Grant of Advances 7th Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants

7th CPC : Amendment to rules on House Building Advance (HBA) to Railway servants.

7th-CPC-House-Building-Advance-HBA-Railway-servants

Government of India (Bharat Sarkar)
Ministry of Railways (Rail Mantralaya)
(Railway Board)

No.F(E)Spl./2008/ADV.3/6(7th CPC)

The General Managers and PFAs
All Indian Railways & Production Units
(As per standard list)

New Delhi,
Dated:28.03.2018

Subject: Grant of Advances Seventh Central Pay Commission recommendations – Amendment to rules on House Building Advance (HBA) to Railway servants.

 

Please refer to this Ministry’s letter of even number dated 05.12.2017 on the above cited subject(vide which, the revised provisions relating to the grant of House Building Advance (HBA) as issued by Ministry of Housing & Urban Affairs (Housing III Section) vide their OM No.1.17011/11(4)/2016-H-III dated 09.11.2017 pursuant to acceptance of 7th CPC recommendations, were mutatis-mutandis made applicable to Railway employees.

2. Ministry of Housing & Urban Affairs vide their OM dated 31.01.2018 (copy enclosed) have now issued clarifications to the fulfillment of extant conditions mentioned in para-2(viii) of their aforesaid OM dated 09.11.2017, which shall be applicable mutatis-mutandis on the Railways.

3. Please acknowledge receipt

4. Hindi version will follow.

S/d,
(G.Priya Sudarsani)
Joint Director Finance (Estt.)
Railway Board

 Source: NFIR

Download Order

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Small Family Norms in House Building Advance Rules-2017 as per the recommendations of 7th CPC

Small Family Norms in House Building Advance Rules 2017 as per the recommendations of 7th CPC

Government of India
Ministry of Housing & Urban
Housing – III Section

Nirman Bhawan, New Delhi,
Dated 31.01.2018

Office Memorandum

Subject: Small Family Norms in House Building Advance Rules-2017 as per the recommendations of 7th CPC- reg.

The undersigned is directed to invite attention to Ministry of Finance’s 0M NO. 12(4)/2016-EIII.A dated 7th July 2017 on above mentioned subject and to say that interest rebate available to HBA beneficiaries for promoting small family norms shall cease to exist with effect from 01.07.2017.

(Shailendra Vikram Singh)
Director(IFD)

Authority: www.pcdapension.nic.in

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Interest bearing advances/ Seventh Central Pay commission on migration Of existing government employees who have already taken Home Loans from Banks’ other Financial Institutions

Migration of Home Loan to Revised HBA – Ministry of Housing & Urban Affairs

Interest bearing advances/ Seventh Central Pay commission on migration Of existing government employees who have already taken Home Loans from Banks’ other Financial Institutions

1-17011/11(4)/2016-H.III
Government of India
Ministry of Housing & Urban Affairs
Housing-III Section

Nirman Bhawan, New Delhi,
Dated:31.01.2018

Office Memorandum

Subject: Interest bearing advances/ Seventh Central Pay commission on migration Of existing government employees who have already taken Home Loans from Banks’ other Financial Institutions – reg.

Kind attention is invited to para 2(viii) of this Ministry’s OM. No. l- 17011/11 (4)/2016-H.III dated 09.11-2017 on the above-mentioned subject regarding fulfilment of extant conditions, extant conditions are clarified as follows.

a) Before granting such House Building Advance. the Head of the Department

i) Should satisfy himself that the home loans were taken by the government employee entirely for purpose of construction / purchase of new house/ flat.

ii) Should ensure that the House Building Advance sanctioned is to tie amount of loan still due to be repaid by the government employee

b) House Building Advance can be availed towards repayment of bank loan taken for the purpose of construction/ purchase of new house/ flat.

C) Employee shall be eligible for grant Of House Building Advance on the date she obtained loans from banks and other financial institutions, irrespective of whether they applied for House Building Advance before raising he loan.

d) House Building Advance fry repayment of loans Shall be granted to the Eligible employees in one lump sum. However, the Government employee shall produce the HBA Utilisation Certificate within one month the date of release of HBA

e) Employee has to satisfy tie other provisions of the House Building Advance Rules -2017.

(Shailendra Vikram Singh)
Director(FD)

Authority: www.mohua.gov.in

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HOUSE BUILDING ADVANCE for Central Government Employees

HOUSE BUILDING ADVANCE

Housing Loan for Central Government Employees…

General Rules for HBA :-

The advance granted to all permanent Central Government Employees.

The advance granted, who has completed minimum 10 years continuous service.

The advance granted for construction / purchase of house / plot.

The advance granted for purchase of ready-built house / flats.

The advance granted for buying a plot or flat under Co-operative Schemes.

The advance granted for enlarging existing accommodation.

The advance granted for purchase of houses / flats under Self Financing Housing Schemes and Co-operative Group Housing Schemes.

General Conditions for HBA :-

Employees should not have availed of any loan or advance for the purpose from any other Government sources.

Employee or spouse or minor child should not already own a house.

Cost Ceiling :-

Cost of the house (excluding cost of the land) should not exceed 134 times of the Basic Pay, subject to a minimum of Rs.7.5 lakhs and a maximum of Rs.18 lakhs. (If both husband and wife are working central government services, the pay of both of them will be taken into consideration for calculating the cost ceiling).

Sanction Amount :-

The amount of House Building Advance admisssiable for employees is 34 times of the Basic Pay or Rs.7.5 lakhs or cost of the building or repaying capacity, whichever is least.

RATE OF INTEREST :-

(Note: No interest is chargeable beyond the date of retirement / death of the Government Servant.)

HBA

sanctioned amount

26-7-90 to

15-12-97

16-12-97 to

31-3-2001

1-4-2001 to

31-3-2002

1-4-2002 onwards

Rs. 25,000/-

7.5%

7.5%

6.5%

6%

Rs. 50,000/-

7.5%

7.5%

6.5%

6%

Rs. 75,000/-

9%

9%

8%

7.5%

Rs. 1,00,000/-

9%

9%

8%

7.5%

Rs. 1,25,000/-

10%

9%

8%

7.5%

Rs. 1,50,000/-

10%

9%

8%

7.5%

Rs. 2,00,000/-

11%

11%

10%

9.5%

Rs. 2,25,000/-

11.5%

11%

10%

9.5%

Rs. 2,50,000/-

12%

11%

10%

9.5%

Rs. 5,00,000/-

….

11%

10%

9.5%

Rs. 7,50,000/-

….

12%

11%

10.5%

(Note: The advances carry interest from the date of payment of the first installment and is calculated on the balance outstanding on the last day of each month.)

Income Tax Rebate for HBA :-

Repayment of Principal sum of H.B.A. is exempt u/s 88 of Income Tax Act.

Exemption for Interest portion of HBA is admissible up to maximum of Rs. 1,50,000/-.

If any individual has drawn House Building Loan from any other financial institution, at the end of the year he should obtain a certificate from that financial institution showing repayment of loan details. In that repayment of Principal sum and Interest portion should be clearly mentioned. Accordingly income tax rebate can be taken on principal sum and interest sum.

Interest is calculated on the balance of HBA outstanding on the last day of the month i.e. on the IBB just like calculation of interest on advance for purchase of conveyance, etc.

Interest on H.B.A. is exempt u/s 24(b) of Income Tax Act.

Family Planning Concession for HBA: –

Concessional interest to Central Government Employees for promoting Small Family Norms. – The rate of interest will be half per cent less for an employee who undergoes sterlization.

Be the first to comment - What do you think?  Posted by admin - September 30, 2015 at 11:13 am

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Rules for House Building Advance (HBA) for Indian Railway Employees

House Building Advance (HBA) for Indian Railway Employees

HBA is admissible to :

  •  A Permanent railway employee or a temporary Railway employee with 10 years of service.
  •  Officers of all India services (IAS, IPS, IFS) on deputation to the Railways continuously for 6 years.
  •  If both Husband and wife are Railway employees, advance is admissible to any one of them. Where a house-site is owned jointly by husband and wife, amount will be sanctioned only if both agree to mortgage the same to Government.
  • If both Husband and wife are Government Servants, the pay of both of them will be taken into consideration for calculating the ceiling limit.
  • A Railway employee under suspension may be granted HBA on furnishing collateral security in the shape of mortgage bond from two permanent Railway employees.

HBA is granted for the following purposes:

  • Purchase of a plot for construction of a house.
  • Construction of a house on a plot already owned by a Railway employee or jointly with his/her spouse.
  • Enlargement of an existing house.
  • Purchase of a ready built house of flat.
  • Repayment of loan taken from Govt/private sources for constructing a house.

Cost ceiling

  •  134 times pay in Pay Band subject to a minimum of 7.5 Lakh and maximum of 30 Lakhs.

Amount of Advance

  • 34 times the Basic Pay + Grade Pay or Rs. 7,50,000 or the actual cost or repaying capacity whichever is less.
  • For enlargement of an existing house, 34 times the Basic Pay + Grade Pay or Rs. 1,80,000 or the actual cost whichever is less.
  • In case of construction of a house in rural area, the amount of advance is 80% of the actual cost of construction and land.
  • For purchase of plot/land and mount not exceeding 20% of advance in case of single storied and 15% in case of double storied is permitted.

Rate of Interest

Upto Rs. 50,000                 5%

Upto Rs. 1,50,000             6.5%

Upto Rs. 5,00,000             8.5%

Upto Rs. 7,50,000             9.5%

 

  • Penal interest of 2.5% for violating conditions.
  • 0.5% reduction for promoting small family norms.
  • Rate of interest prevalent on the date of release of advance/first instalment shall be applicable.

Recovery

Principal               –    180 months

Interest                 –    60 months

Purchase of land and construct house – The following month of completing construction or 24 months after granting first installment whichever is earlier.

Construction of house – The following month of completing construction or 18 months after granting first installment whichever is earlier.

Source:  Indian Railway Employee

Be the first to comment - What do you think?  Posted by admin - October 6, 2013 at 3:15 pm

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House Building Advance – Enhancement of ceiling of House Building Advance from Rs.15 to Rs.25 lakhs in Tamil Nadu

House Building Advance – Enhancement of ceiling of House Building Advance from Rs.15 to Rs.25 lakhs in Tamil Nadu

Tamil Nadu Government has decided to increase the ceiling of House Building Advance to its employees from 15 lakhs to 25 lakhs, due to escalation in the cost of land and building materials.

An important abstract order issued from Finance Department of Tamil Nadu on 20.6.2012 regarding enhancement of ceiling of Housing Loan to State Government employees and officers. The Government Order says,  ‘the ceiling on House Building Advance to the Government Servants was lastly revised in the year 2009.

At this distance of time, considering the escalation in the cost of land and building materiel, the Hon’ble Minister for Finance, in the Budget Speech for the year 2012-2013, has announced enhancement of the present House Building Advance ceiling from Rs.15 lakhs to  Rs.25 lakhs to Government Employees. Further, the Government have also considered enhancement of House Building Advance ceiling from Rs.25 lakhs to Rs.40 lakhs to All India Service Officers. The Government after careful examination have decided to enhance the existing maximum ceiling of House Building Advance as above’.

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