How to Apply for House Building Advance?

My uncle is a central government employee. He informed me that the house building advance is available to any central government employees who have been in the services for at least ten consecutive years. They might be either permanent or temporary employees. Being curious, I asked how to apply for house building advance. 

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What is House Building Advance?

My uncle informed me that employees of the Central Government can apply for House Building Advance (HBA) to assist with house or flat building or acquisition. The programme was first introduced in 1956 as a welfare measure. The nodal ministry for carrying out the same is the Ministry of Urban Development. The Ministry also creates guidelines for advanced house construction.

All central government employees, whether they are permanent or temporary, who have worked for ten years or more are eligible for HBA. Depending on the current regulations, the relevant departments have the authority to approve House Building Advance for employees. To get the HBA loan you will need to fill a HBA application form.

An employee of the Central Government can borrow up to 34 months' worth of basic pay. This is limited to a maximum of Rs. 25 lakh, the price of the home, or a sum determined by his or her ability to repay. 

How to apply HBA for central government employees?

To answer your query about how to apply for HBA loan, I’d like to say that, a 12-page application form must be filled out and submitted. 

You can click on the below-given link to get the HBA application form;

You should go over these instructions before filling out the form to prevent any major errors;

• In order to prove that the property belongs to you, the central government employee, or your spouse, you should have the necessary papers.

• The applicant's spouse shouldn't be the owner of any other land, home, or apartment at the time the HBA application is submitted. There shouldn't be any property registered in their name or even under the name of their minor child.

• Employees should have a minimum of 10 years of continuous employment, whether they are permanent or temporary.

• The advance can be used to construct a house or to buy the land on which it will be built.

• In lesser than 180 monthly payments, the HBA will be recovered. Additionally, the interest will be paid back in less than 60 installments every year. The repayments will be made in convenient installments for the government employee if they leave their position before 20 years have passed. Another option for paying the debt is to use the retirement gratuity.

• As soon as the purchase or building of the home is complete, the government employee is required to insure it with the Life Insurance Corporation of India or one of its affiliated organisations. 

• Unless the employee's head of department allows an extension, the house must be mortgaged in the name of the president of India within a certain amount of time. The mortgage deed is re-conveyed once the advance and interest payments have been repaid.

Employees of the central government are now qualified for low-interest House Building Advances (HBA). The HBA interest rate has been lowered by the Ministry of Housing and Urban Affairs to 7.1% by March 31, 2023. Employees of the Central Government are given access to the HBA facility under the 7th Pay Commission, and under the guidelines, they are eligible to receive interest-bearing loans for a variety of uses. 

I hope this suffices your query about how to apply for house building advance. I hope this helps:)

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