House Building Advance to
Central Government Employees
1.
The Scheme of House Building Advance to Central Government Employees
is aimed at providing assistance to the Government employees to
construct/acquire house/flats of their own. The scheme was introduced in 1956,
as a welfare measure. Ministry of Urban Development & Poverty Alleviation
act as the nodal Ministry for the same.
2. House Building Advance is
admissible to all those temporary employees also who have rendered 10 years of
continuous service. The Ministries/Departments are delegated powers to sanction
House Building Advance to their employees in accordance with the House Building
Advance Rules.
3.With effect
from 27-11-2008, the following provisions of grant of House Building Advance shall be in operation, until further
orders:-
(i).The
maximum limit for grant of HBA shall be 34 months' of pay in the pay band subject to a maximum of Rs. 7.50 lakh or cost
of the house or the repaying capacity whichever is the least, for new
construction/purchase of new house/flat.
(ii).The maximum limit for
grant of HBA for enlargement of existing house shall be 34 months' pay in the
pay band subject to a maximum of Rs. 1.80 lakh or cost of the enlargement or repaying
capacity, whichever is the least.
(iii).The cost ceiling limit
shall be 134 times the pay in the pay band subject to a minimum of Rs.7.50 lakh and a maximum of Rs.30 lakh relaxable up to a maximum of 25% of the
revised maximum cost ceiling of Rs.30 lakh.
4. The rate of interest on
House Building Advance is between 5% to 9.5%
,depending on the loan amount.
5. The repaying capacity of
Govt. servants who have more than 20 years of remaining service has been
revised from 35% to 40% of pay. (Pay means pay in the pay band).
6. The salient features of House Building Advance Rules are as
follows-
1. ELIGIBILITY
- Permanent Government employees.
- Temporary Government employees who have rendered at least 10 years continuous service.
- To be granted once during the entire service.
If both the husband and wife are Government of India employees and
eligible for HBA, it shall be admissible to only one of them.
2. PURPOSE
HBA is granted for:
1.
Constructing a new house on the plot owned by the official or the
Official and the Official's wife/husband jointly.
2.
Purchasing a plot and constructing a house thereon.
3.
Purchasing a plot under Co-operative Schemes and Constructing a house thereon or acquiring
house through membership of Co-operative Group Housing Scheme.
4.
Purchasing /construction of house under the Self-Financing scheme
of Delhi, Bangalore, U.P., Lucknowetc.
5.
Outright purchase of new ready-built house/flat Housing boards,
Development Authorities and other statutory or semi-Government bodies and also
from private parties.*
6.
Enlarging living accommodation in an existing house owned by the
official or jointly with his/her wife/husband. The total cost of the existing
structure (excluding cost of land) and the proposed additions should not exceed
the prescribed cost ceiling.
7.
Repayment of loan or advance taken from a Government or HUDCO or
Private source even if the construction has already Commenced, subject to certain conditions.
8.
Constructing the residential portion only of the building on a
Plot which is earmarked as a shop-cum-residential plot in a Residential colony.
* Private party means registered builders but not private
individuals.
3. CONDITIONS:
a) The applicant or spouse or minor child should not already own a
house in the town/Urban agglomeration where the house is proposed to be
constructed or acquired.
b) The title to the land should be clear. The land may be owned
either:
- by the
Government employee; or
- jointly by the
Government employee and spouse.
c) COST
CEILING
134 times of pay in the pay band subject
to a minimum of Rs. 7.50 lakh and a maximum of Rs.30 lakh
Administrative Ministry may relax the cost
ceiling to
25% of cost ceiling mentioned above in the individual cases on merits.
(Effective from 27th November, 2008)
d) AMOUNT
OF ADVANCE:
- will be the LEAST of the following:-
(i) 34 times the pay in
the pay band.
(ii) The cost of construction.**
(iii) Rs. 7,50,000/- ***
(iv) Repaying Capacity.
** 80% of cost in rural areas.
*** Rs. 1,80,000/- in case of enlargement of existing house.
e) REPAYING CAPACITY:-
Repaying Capacity is computed on the
following basis:-
|
S.
No.
|
Length
of remaining service of the applicant.
|
Repaying
Capacity
|
|
1.
|
Retiring
after 20 years.
|
40%
of pay @
|
|
2.
|
Retiring
after 10 years but not later than 20 years.
|
40%
of pay @ plus 65% of * Retirement Gratuity
|
|
3.
|
Retiring
within 10 years
|
50%
of pay @ plus 75% of * Retirement Gratuity.
|
@ Pay means pay in the pay band
4. DISBURSEMENT OF ADVANCE:
|
S.
No.
|
Purpose
of HBA
|
Disbursement
|
|
|
(1)
|
(2)
|
(3)
|
|
|
(i)
|
For
construction/enlargement (single or double storeyed).
|
50%
-
50% |
on execution of mortgage deed
on construction reaching plinth level (Ground Floor). |
|
(ii)
|
For
purchase of land and construction (Single storeyed)
|
40%
or -
actual cost 30% - 30% - |
for purchase of plot on execution of
agreement and production of Surety Bond.
On execution of Mortgage deed. On construction reaching plinth level. |
|
(iii)
|
For
purchase of land and construction (Double storeyed)
|
35%
or actual cost
32.5% - 32.5% - |
for purchase of plot on execution of
agreement and production of Surety bond.
On execution of the mortgage deed. On construction reaching the plinth level. |
|
(iv)
|
For
purchase of ready built house/flat
|
100%
- in one lumpsum.
|
|
|
(v)
|
For
acquiring flat/house from Co-operative Group Housing Society.
|
20%
-
80% - |
Towards
purchase of land by the Society.
in
suitable installments on receipt of demand (pro-rate basis)
|
|
(vi)
|
For
purchase of flat under SFS of Development Authorities etc.
|
|
No
payment for initial registration Deposit.
May
be released in not more than 5instalments. But the fifth
and finalinstalment should not be
less than 10% and is to be released for making final payment.
|
5. TIME SCHEDULE FOR UTILISATION OF HBA:
|
S. No.
|
Purpose
|
Time limit
|
|
(a)
|
Purchase
of registered plot on which construction can commence immediately.
|
Sale deed to be
produced within 2 months.
|
|
(b)
|
Purchase
of ready built house.
|
Acquisition
and mortgage to Government to be completed within 3 months.
|
|
(c)
|
Purchase/construction
of new flat
|
Should
be utilised within one month of sanction.
|
6. REPAYMENT OF ADVANCE:
The recovery of advance shall
be made in not more than 180 monthly installment and
interest shall be recovered thereafter in not more than 60 monthly
installments. In case Government servant is retiring before 20 years, repayment
may be made in convenient installments and balance may be paid out of
Retirement Gratuity.
7. INTEREST
The rate of interest on
Housing Building Advance with effect from 1st April, 2003 are as
follows:-
|
S.
No.
|
Amount
of Advance sanctioned to a Government Servant
|
Rate
of Interest on HBA (Per Annum).
|
|
1.
|
Upto Rs. 50,000/-
|
5%
|
|
2.
|
Upto Rs. 1,50,000
|
6.5%
|
|
3.
|
Upto Rs. 5,00,000/-
|
8.5%
|
|
4.
|
Upto Rs. 7,50,000/-
|
9.5%
|
8.COMMENCEMENT OF
RECOVERY:
|
Construction
of a house or enlargement of living accommodation
|
*
From pay for the month following the completion.
Or
The
pay for the 18th month after date
of payment of the 1st installment,
whichever is earlier.
|
|
Purchase
of land and construction.
|
*
From pay for the month following the completion of the house.
Or
The
pay for the 24th month after date
of drawl of instalment for purchase of land, whichever is earlier.
|
COMMENCEMENT OF RECOVERY (CONT'D):
|
Ready
built flat.
|
*
Pay for the month following the month in which advance was drawn.
|
|
Purchase
of Flat under SFS from Development Authority/Housing Society.
|
*
From the pay for the 18th month after date
of payment of 1st instalment.
|
* The sanctions of HBA should
invariable stipulate a higher rate of interest at 2.5% above prescribed rates
with the stipulation that if conditions attached to the sanction are fulfilled,
rebate of interest to the extent of 2.5% will be allowed.
9. CREATION OF SECOND MORTGAGE:
The Government servants who
have obtained HBA from the Government may be permitted to create a second
charge on the property provided they obtain prior permission of the Head of the
Department and the draft deed of second mortgage is submitted to the Head of
the Department for scrutiny. Such a second charge may be created only in
respect of loans to be granted for meeting the balance cost of houses/flats byrecognised financial institutions.
10.PROVISIONS FOR SAFE RECOVERY OF HOUSE BUILDING ADVANCE:
(i). As a safeguard of the House Building advance, the loanee Government
employee has to insure the house immediately on completion or purchase of the
house, as the case may be, at his own cost with Life Insurance Corporation of
India and its associated units. The house/flat
constructed/purchased with the help of House Building advance
can also be insured with the private insurance companies which are approved by
Insurance Regulatory Development Authority(IRDA). However, the
insurance should be taken for a sum not less than the amount of advance against
damage by fire, flood and lightning, and has to be continued till the advance
together with interest is fully repaid to Government.
(ii).The house constructed/purchased with the help of House
Building Advance has also be mortgaged in favour of the President of
India within a stipulated time unless an extension of time is granted by the
concerned Head of the Department. After completion of the recovery of the
advance together with interest thereon, the mortgage deed is re-conveyed in a
proper manner.
Source : http://www.staffcorner.com/
