New Delhi, 10 June 2021: During the Covid-19 pandemic there is a good chance to build houses on cheap loans for central government employees. The government will provide money to build the house (House Building Advance) at low interest. If the employee takes the loan amount till March 31, 2022, then, only 7.9 percent interest will be available on the advance. In 2020, Finance Minister, Nirmala Sitharaman made many big announcements for the housing sector and export sector, to accelerate the economy. These included reducing the interest rate on House Building Advance. Now its term has been extended till March 31, 2022. Both central and state employees can take this advance.

What is House Building Advance

The government gives house building advance to the central and state employees. In this, employees can take advance for construction on the plot owned by them or their wife. Advance is based on bank loan repayment. Employees get this fund to buy or build a house. The only condition being, a government employee gets this advance only once, in the tenure of his/her job. All the permanent employees are eligible for House Building Advance. Temporary employees with continuous service of 5 years can also take advantage of this facility.

Where to apply for this benefit?

Employees can apply for this advance in their department. Under the campaign of the Modi government, fast action is being taken on such advances at the given time. The funds required to buy the house will be available through a special window. Along with this, relief has been given by the government in the External Commercial Guidelines for Affordable Housing.

Associated to the simple interest

The special thing about House Building Advance is that it is related to simple interest. Interest is charged based on the slab system. Slabs also range from 50 thousand to 7.5 lakh rupees. In this, a maximum of Rs 7.5 lakh is available. Overall, this advance can be repaid at a lower rate of interest.

What are the conditions?

Your House Building Advance file will be passed only after seeing the basic pay of 34 months and the price of the house. The Length of Service is also observed.

On what will the advance be available?

  • To buy a plot or a house

  • To construct a house

  • To buy a plot from a cooperative or group housing society

  • To buy a house under self-financing scheme

Big relief to employees

Nirmala Sitharaman had said last year that, this would directly benefit government employees. The government believes that the role of government employees is important to increase the housing demand. By giving relief to government employees, the demand will boost in the future. A total of 1.95 crore people have benefited under the Pradhan Mantri Awas Yojana.