House Building Advance Rules 2017 – New rules set in supersession of old Rules
iii. Members of All India Services deputed for service under the Central
Government/Company/ Association/Body of individuals whether incorporated or not, which is wholly or substantially owned or controlled by the Central Government or an International Organization, and autonomous body not controlled by Government or Private Body.
vi. Central government employees governed by The Payment of Wages Act,
b) For expansion of existing house, the amount of HBA will be limited to 34 months
basic pay subject to maximum of Rs.10.00 lakhs only (Rs. Ten lakhs), or the cost of the expansion, or the amount according to repaying capacity, whichever is the least.
ii. The methodology of recovery of HBA shall continue as per the existing pattern of
recovery of principal first in the first fifteen years in not more than 180 monthly instalments and interest thereafter in next five years in not more than 60 monthly instalments. The advance carries simple interest from the date of payment of first instalment.
iii. All cases of subsequent tranches/ installments of HBA being taken by the
employee in different financial years shall be governed by the applicable rate of interest in the year in which the HBA was sanctioned, in the event of change in the rate of interest.
“Sanction should stipulate the interest 2. 5% over and above the scheduled rates with the stipulation that, if conditions attached to the sanction including those relating to the recovery of amount are fulfilled completely to the satisfaction of competent authority,a
rebate of interest of the extent of 2. 5% will be allowed“.
ii. Advance for purchase/ construction of new flat may be paid either in one lump sum
or in convenient instalments at the discretion of the Head of Department. The employee should execute the agreement in prescribed form before the advance/ first instalment of advance is paid to him/ her. The amount drawn by the employee should be utilized for the purchase/ construction of the flat within one month.
v. will be disbursed as below:
In the case of advance for purchase of plot and construction of house, the advance
b) Penal interest of 2% over and above existing rate of interest will be
recovered from the employee for those periods which are not covered by insurance of the house.