House Building Advance to Central Government Employees

Posted by binu P Wednesday, January 28, 2009

" 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. "

--> 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.

--> 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.

--> The rate of interest on House Building Advance is between 5% to 9.5% ,depending on the loan amount.
--> 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).

-->The salient features of House Building Advance Rules are as follows-


* 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.


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., Lucknow etc.
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.


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.


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)


* 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.

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2 Responses to House Building Advance to Central Government Employees

  1. pyarelal Says:
  2. I have given advance of Rs. 1.oo lakh to Avalone Group who are constructing flats at Bhiwadi(Raj).The construction is going on and 9th floor have already been construction. As per construction link plan I have to pay till july,2010 Rs,.10.50 lakhs. The total cost of flat is 16.72 lakhs. The tentative date of possestion is Feb.2011. Am I elgible to avail loan. I am working in Home Ministry and basic pay is Rs.22310. The builder has provided all the papers which are required. My Deptt. has stated the before proceeding the request, I may submit a letter from the selling agency indicating the price and willingness to hand over a clearly distinguisable flat within two months. When I asked which rule is this. The dealing assistant is unanswerable and says that is mentioned in the HBA rules. Can you please help me in this manner because I feel that assistant is new one and does not want to process

  3. murthy Says:
  4. Sir,
    I have taken a loan for purchasing a flat in group housing from ICICI bank of Rs 420000.I am a central govt employee havin a basic pay of Rs 13200 and grade pay of Rs 4600,how much I will get as Iam having 21 years of service to pay back the ICICI loan and what is the procedure to get the loan.


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