7th Pay Commission: HBA up to Rs 25 lakh approved for govt employees

1,063

The Centre has approved loans up to Rs 25 lakh under the house building advance (HBA) scheme for lakhs of Central government employee.

The announcement has increased the allowance by three times of the earlier norm. However, if spouse is a Central government employee, then one can’t be eligible to take HBA, either jointly or separately. Earlier only one spouse was eligible for such an advance.

With an aim to give a fillip to the housing sector and push construction activities, the government has reportedly notified the changes in the rules on November 9.

Revising the HBA rules incorporating the accepted recommendations of the 7th pay commission, the government also increased the amount that a central government employee can borrow for expansion of their homes to 34 months of basic pay to a maximum of Rs 10 lakh from the earlier Rs 1.8 lakh.

Besides, cost ceiling limit of the house, which an employee can construct or purchase, has been enhanced to Rs 1 crore with a provision of upward revision of 25 per cent in deserving cases, from the earlier Rs 30 lakh.

Also Read: 7th Pay Commission: Modi govt faces employees’ wrath; revised pay from April

The government also fixed the rate of interest on HBA to 8.5 per cent, in place of the earlier four slabs of interest rates ranging from 6 per cent to 9.50 per cent for loans ranging from Rs 50,000 to Rs 7.5 lakh.

Meanwhile, as many as 10 central trade unions on Thursday called for a three-day agitation in front of Parliament and they will reportedly continue their nationwide relay protest for the next four months highlighting government’s inaction to create more jobs and protect the interest of the working class.

Dubbing the Modi government as anti-people, the unions alleged that the policies of BJP has always been ‘anti-worker’ and so their ‘anti-government’ offensive will start with their three-day agitation in front of Parliament.

You might also like

Comments

Loading...