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House Building Advance
It is admissible to :
- A Permanent railway employee or a temporary railway servant 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 Servants, 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 celing limit.
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 Servant or joitly 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.
Amount of Advance
- 34 times the Basic Pay + Grade Pay or Rs. 7,50,000 or the actual cost whichever is less.
- For enlargement of an existing house, 34 times the Basic Pay + Grade Pay or Rs. 7,50,000 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.
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.
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.
- A Permanent railway employee or a temporary railway servant 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 Servants, 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 celing limit.
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 Servant or joitly 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.
Amount of Advance
- 34 times the Basic Pay + Grade Pay or Rs. 7,50,000 or the actual cost whichever is less.
- For enlargement of an existing house, 34 times the Basic Pay + Grade Pay or Rs. 7,50,000 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.
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.
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.
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