7th Pay Commission: Know eligibility for house building advance, why it is given

New Delhi. House Building Advance (HBA) is provided to the Central Government employees as per the recommendations of the 7th Pay Commission. Employees can avail HBA at the rate of 7.1% till 31 March 2023. Today we will discuss about the eligibility, purpose, cost limit for HBA, calculation of advance amount and repayment capacity and methodology for recovery of HBA.

Let us tell you that the government gives house building advance to its employees. In this, the employee can take advance to build a house on his own or his wife’s plot. This scheme started from 1 October 2020.

Why is HBA given?
1. Construction of a new house on a plot owned jointly or severally by the employee or the spouse.
2. Buying a plot and building a house on it.
3. Purchase of plot and construction of house/flat thereon under co-operative schemes or acquisition of house through membership of co-operative group housing societies.
4. Purchase/construction of house under self-financing schemes of Delhi, Bengaluru, UP, Lucknow etc.
5. Purchase of a newly constructed house/flat from Housing Boards, Development Authorities and other Statutory or Quasi-Government bodies and from registered builders i.e. registered private builders, architects, house building societies etc. However, HBA is permitted for purchase of ready-made houses/flats from private individuals.
6. Extension of living space to an existing house owned by the employee or jointly with the spouse.
7. Repayment of loans or advances taken from Government or HUDCO or private sources, even if construction has started. (Subject to certain conditions)
8. Employees who had taken home loan from banks can migrate to HBA scheme subject to certain conditions.
9. Construction of only residential portion of the building on the plot earmarked for shop-cum-residential plot in residential colony, subject to prescribed cost ceiling

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Eligibility for HBA
HBA is allowed for all permanent Central Government employees. If both husband and wife are central government employees, both are eligible for HBA jointly or severally. HBA is also allowed for some other categories of HBA employees.