rules on the subject:
regulated in terms of rules and regulations laid down from time to time by
the Ministry of Housing Urban Affairs (erstwhile Ministry of Urban
Development). These rules are as under:
the following purposes:-
either jointly or individually.
flat thereon or acquiring a house through membership of Cooperative Group
Delhi Bangalore, UP, Lucknow etc.
Development Authorities and other statutory or semi-Government bodies and
from registered builders i.e., registered private builders, architects,
house building societies, etc, but not from private individuals.
employee or jointly with spouse. The total cost of the existing structure
(excluding cost of land) and the proposed additions should not exceed the
prescribed cost ceiling under these rules.
private sources even if the construction has commenced, subject to certain
other financial institutions are allowed to migrate to this scheme, subject
to fulfilment of extant conditions.
earmarked for a shop-cum-residential plot, in a residential colony, subject
to prescribed cost ceiling.
provided they do not hold permanent appointment under a State Government
and the sanctioning authority is satisfied about their likely retention in
service till the house is built and mortgaged.
Government/Company/ Association/Body of individuals whether incorporated or
not, which is wholly or substantially owned or controlled by the Central
Government or an International Organization, and autonomous body not
controlled by Government or Private Body.
prescribed at (ii) above and have been appointed in long term contracts
extending to the age as per extant rules.
Foreign Service. Such cases to be processed by the Head of the Office of
the Parent Department.
central government employees under suspension remains unchanged.
and are both eligible for grant of House Building Advance, the advance
will be admissible to both of them jointly/separately.
should not exceed 139 times of the basic pay of the employee subject to a
maximum of Rs.1.00 crore (one crore) only. In individual cases, if the
Administrative Ministry is satisfied on the merits of the case, the cost
ceiling may be relaxed up to a maximum of 25% by the Head of the
his/ her entire service.
Twenty five lakhs), or cost of the house/flat, or the amount according to
repaying capacity, whichever is the least for construction/purchase of new
months basic pay subject to maximum of Rs.10.00 lakhs only (Rs. Ten lakhs),
or the cost of the expansion, or the amount according to repaying capacity,
whichever is the least
land and construction of house or cost of expansion of living accommodation
in the case of construction in rural areas. This can be relaxed and 100%
can be sanctioned if the Head of the Department certifies that the
concerned rural area falls within the periphery of town or city.
capacity of the central government employee shall be calculated as below:
|a)||In cases of employee retiring after 20 years||40% of basic pay|
|b)||In cases of employee retiring after 10 years but not later
than 20 years.
|Up to 40% of basic pay, 65% of DCR Gratuity may also be
|c)||In cases of employee retiring within 10 years.||Up to 50% of basic pay DCR Gratuity up to 75% can be
onwards shall be 8.50%. This shall be reviewed every three years to be
notified in consultation with Ministry of Finance.
pattern of recovery of principal first in the first fifteen years in not
more than 180 monthly instalments and interest thereafter in next five
years in not more than 60 monthly instalments. The advance carries simple
interest from the date of payment of first instalment.
the employee in different financial years shall be governed by the
applicable rate of interest in the year in which the HBA was sanctioned, in
the event of change in the rate of interest.
The clause of adding a higher rate of interest at 2.5% (two point five
percent) above the prescribed rate during sanction of House Building
Advance, as reproduced below, stands withdrawn.
scheduled rates with the stipulation that, if conditions attached to
the sanction including those relating to the recovery of amount are
fulfilled completely to the satisfaction of competent authority, a
rebate of interest of the extent of 2. 5% will be allowed”.
soon as the applicant executes an agreement in the prescribed form. The
employee should ensure that the house is purchased and mortgaged to the
Government within 3 months of draw! of the advances.
one lump sum or in convenient instalments at the discretion of the Head of
Department. The employee should execute the agreement in prescribed form
before the advance/ first instalment of advance is paid to him/ her. The
amount drawn by the employee should be utilized for the purchase/
construction of the flat within one month.
shall be payable in two instalments of 50% each. The first instalment will
be paid after the plot and proposed house/ existing house is mortgaged and
the balance on the construction-reaching plinth level…
house will be disbursed in two instalments, first instalment on executing
the mortgage deed and the second instalment on the construction reaching
the advance will be disbursed as below:
Single Storeyed House:
After agreement in prescribed form is executed on production of surety
bond, 40% of the advance or actual cost will be disbursed for purchase of
plot. The balance amount will be disbursed in two equal instalments, first
after the mortgage is executed and second on the construction reaching
30% of advance for cost of plot will be disbursed on executing the
agreement. The balance amount will be disbursed in two equal instalments,
the first on executing the mortgage deed and the second on construction
reaching plinth level.
the employee, if he wishes to take a second charge to meet the balance cost
of the house/ plot or flat from recognized financial institutions, then he/
she may declare the same and apply for NOC at the time of the applying for
NOC for second charge will be given along with sanction order of HBA
. The total loan form HBA and from all other sources cannot be beyond
ceiling cost of the house as defined under para 4 above.
shall be submitted to one of the loan sanctioning authorities of their
reconvened on the prescribed form to the central government employee
concerned (or their successors in interest, as the case may be), after the
advance together with interest thereon, has been repaid to Government in
full and after obtaining No Demand Certificate in respect of HBA loan
sanctioned by the 2nd loan sanctioning authority.
employee shall insure the house with the recognized institutions as
approved by Insurance Regulatory and Development Authority (IRDA), for
not less than the amount of advance and shall keep it so insured against
damage by fire, flood and lightning till the advance together with interest
thereon is repaid in full and deposit the policy documents with the Head of
the Department (HoD). Renewal of insurance will be done every year and
premium receipts produced for inspection of the HoD regularly.
recovered from the employee for those periods which are not covered by
insurance of the house.
separate order for migration to the revised House Building Advance rules
will be issued shortly.
of House Building Advance rules, all other extant rules shall continue to
apply till further orders.
so far as the persons working in the Indian Audit & Accounts Department
All the Ministries and Departments of the Government of India as per
standard distribution list.
Copy to – C&AG and U.P.S.C., etc. as per Standard endorsement list.
Copy for information to- PS to MOS(l/c), HUA, PSO to Secretary/PPS to
JS&FA, Budget Division and US(Admn.), MoHUA, New Delhi.
Copy to – IT Cell, MoHUA for uploading on MoHUA website.
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