Planning for HBA in 2024-25? Here’s What You Need to Know About House Building Advance Interest Rates Now !

The House Building Advance Interest Rates to central Government Employees for the Year 2024-25 will be 7.44% till further orders.

The Interest rate for HBA in previous Financial Year 2023-24 was 7.5%. [See the Order ]Now it has been reduced by 0.06%

Know About House Building Advance Interest Rates in 2024-25

I-17015/2(2)/2024/H.III/20
Government of India
Ministry of Housing & Urban Affairs
(Housing-III-Section)

Nirman Bhawan, New Delhi
Dated: 12 June, 2024

OFFICE MEMORANDUM

Subject: – Rate of Interest on House Building Advance (HBA) for Central Government Employees for FY 2024-25.

Interest rate for HBA in 2024-25

In pursuance to revision of interest rate by Department of Economic Affairs, Ministry of Finance vide OM No 9(2)-B(PD)/2024 dated 10.06.2024, the rate of interest applicable on House Building Advance sanctioned to Central Government Employees for Financial Year 2024-25 (i.e. 1% April, 2024 to 31 March, 2025) will be 7.44% till further orders.

2. This issues with the approval of Competent Authority.

(Manoj Kumar Jha)
Under Secretary to the Govt. of India

To
All the Central Government Ministries/Departments

Copy for kind information to:

1. PS to Hon’ble Minister, Ministry of Finance, North Block, New Delhi.
2. PS to Hon’ble Minister, Ministry of Housing & Urban Affairs, Nirman Bhawan, New Delhi
3. PS to Hon’‘ble Minister of State, Ministry of Housing & Urban Affairs, Nirman Bhawan, New Delhi.
4. SO (IT Cell) with a request to upload it in e-office and on website of Ministry of Housing & Urban Affairs.

House Building Advance Interest Rates for Central Government Employees for the Year 2024-25

Understanding the House Building Advance (HBA) Scheme

The House Building Advance (HBA) scheme is a vital benefit extended to central government employees, enabling them to secure financing for building or purchasing a home. With the evolving financial landscape, it’s crucial for employees to stay informed about the HBA interest rates for the year 2024-25. This comprehensive guide provides detailed insights into the latest interest rates, eligibility criteria, and the application process, ensuring that central government employees can make well-informed decisions regarding their housing finance needs.

The House Building Advance scheme is a long-standing benefit for central government employees in India. The primary objective of this scheme is to provide affordable financial assistance for the construction or purchase of a house. The HBA scheme offers competitive interest rates and flexible repayment options, making it an attractive option for employees looking to invest in real estate.

Key Features of the HBA Scheme

• Interest Rate Benefits: The interest rates under the HBA scheme are generally lower than those offered by private financial institutions, making it a cost-effective option for employees.
• High Loan Amount: The scheme allows employees to borrow up to 34 months’ basic pay or ₹25 lakhs, whichever is lower, for construction or purchase of a new house.
• Flexible Repayment Options: The repayment tenure can extend up to 15 years, providing ample time for employees to manage their finances efficiently.
• Additional Loans: Employees can also avail of additional loans for repairs and renovations of existing houses.
• HBA Interest Rates for 2024-25
• For the fiscal year 2024-25, the government has revised the interest rates for the HBA scheme to align with the current economic conditions and inflation rates. The revised interest rates aim to make home ownership more accessible and affordable for central government employees.

Read House Building Advance Rules 2017

View/Download the Order pdf