House Building Advance (HBA)

HBA is admissible to :

  • A Permanent railway employee or a temporary Railway employee with 10 years of service.
  • Officers of all India services (IAS, IPS, IFS) on deputation to the Railways continuously for 6 years.
  • If both Husband and wife are Railway employees, advance is admissible to any one of them. Where a house-site is owned jointly by husband and wife, amount will be sanctioned only if both agree to mortgage the same to Government.
  • If both Husband and wife are Government Servants, the pay of both of them will be taken into consideration for calculating the ceiling limit.
  • A Railway employee under suspension may be granted HBA on furnishing collateral security in the shape of mortgage bond from two permanent Railway employees.

HBA is granted for the following purposes:

  • Purchase of a plot for construction of a house.
  • Construction of a house on a plot already owned by a Railway employee or jointly with his/her spouse.
  • Enlargement of an existing house.
  • Purchase of a ready built house of flat.
  • Repayment of loan taken from Govt/private sources for constructing a house.

Cost ceiling

  • 134 times pay in Pay Band subject to a minimum of 7.5 Lakh and maximum of 30 Lakhs.

Amount of Advance

  • 34 times the Basic Pay + Grade Pay or Rs. 7,50,000 or the actual cost or repaying capacity whichever is less.
  • For enlargement of an existing house, 34 times the Basic Pay + Grade Pay or Rs. 1,80,000 or the actual cost whichever is less.
  • In case of construction of a house in rural area, the amount of advance is 80% of the actual cost of construction and land.
  • For purchase of plot/land and mount not exceeding 20% of advance in case of single storied and 15% in case of double storied is permitted.

 

Rate of Interest

Upto Rs. 50,000                 5%

Upto Rs. 1,50,000             6.5%

Upto Rs. 5,00,000             8.5%

Upto Rs. 7,50,000             9.5%

  • Penal interest of 2.5% for violating conditions.
  • 0.5% reduction for promoting small family norms.
  • Rate of interest prevalent on the date of release of advance/first instalment shall be applicable.

Recovery

Principal               -    180 months

Interest                 -    60 months

Purchase of land and construct house – The following month of completing construction or 24 months after granting first installment whichever is earlier.

Construction of house – The following month of completing construction or 18 months after granting first installment whichever is earlier.

Comments

ayush raj

Tue, 18/02/2014 - 14:53

sir in HBA, PLOT kharid ke banane keliye, agar mera basic 10350 hai to 10350*34 melaga tab ghar banane keliye kitna mil sakta hai pls. batayega.plot ka market value 12 lakh hai

runjhun0004

Sun, 11/10/2015 - 22:46

My basic is Rs 26540. May I get a home loan of Rs 25 lakhs for purchase of a flat from a builder. Pl. give the procedures of application. I fulfill all eligibility.

mdaizazulhaque

Sat, 02/07/2016 - 00:53

My basic current basic is Rs. 11500 After 7CPC it should be near about Rs. 30,000. May I get a home loan of Rs 25 lakhs If not then how many can I get for purchase of a flat from a builder. Pl. give the procedures of application. I fulfill all eligibility. Plz reply my e-mail id is mdaizazulhaque@yahoo.com

aryaamit123

Mon, 09/04/2018 - 01:38

Presently I working JE POST IN NORTHERN RAILWAY, WITH GP 4200, I APPLIED FOR SAME GP 4200 POST IN STATE PUBLIC SERVICE COMMISSION BEFORE THE JOINING IN RAILWAY, NOW I SELECTED IN STATE JOB AFTER 2 YEAR SERVICE IN RAILWAY .

QUESTIONS HERE:-

1. RAILWAY GIVE  NOC FOR SAME GP 4200.  ?

2. I SIGN BOND AT THE TIME OF JOINING TO SERVE RAILWAY 5 YEAR

3. OR REFUND THE BOND MONEY TO RESIGN THE RAILWAY

sree-santh

Mon, 09/04/2018 - 22:47

Sir

I want know about the procedure and documents for house building allowance please