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
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