Central Government Employees Home Loan: Almost every person dreams of having their own house. Due to rising property prices, it is becoming very difficult for common people to buy their own house. However, buying a house is a little easier for central employees.
The Central Government provides home loans to its employees at very low interest rates under the House Building Advance (HBA) scheme. By taking advantage of which, central employees can realize their dream of having their own house. Let us know about this scheme in detail….
What is House Building Advance (HBA) Scheme?
The House Building Advance (HBA) scheme of the Central Government helps a lot in meeting the house related needs of the central employees. Under this scheme, the central government gives loans to its employees at very low interest rates to build, buy, repair or buy a house. This reduces the financial burden on the employees and also provides security to their future.
The government has made it more useful by increasing the maximum limit of HBA. Central employees can take a loan up to 34 times their basic salary + DA, or a maximum of Rs 25 lakh, whichever is less. If the employee wants to get the house repaired or expanded, then funds are made available for that also as per the separately fixed limits.
Interest rate is lower than banks
Under this scheme, the government provides loans at low interest rates. HBA usually has a fixed interest rate of 6 percent to 7.5 percent, whereas home loan rates in private banks are much higher than this.
Also, fixed interest rate is charged in this scheme. Which means, there is no risk of increasing rates during the entire loan period, due to which employees can plan their budget without being tension free.
Important rules for HBA
All central government employees can take advantage of this scheme. Who have also completed 5 years of service. Also, those who have not availed the benefit of any government scheme related to housing in the past. At the same time, temporary employees can also apply for this on the basis of certain conditions. If both husband and wife are central employees, then only one of them can avail the benefit of this scheme.
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