Central Employees Home Loans: Home Loans for Central Employees Up to 25 Lakhs with low-Interest rates. Central government employees can now take advance up to Rs 25 lakhs for construction or purchase of a house at a low-cost interest rate of 8.50 percent. Earlier, the maximum borrowing limit was Rs 7.50 lakh with interest rate slabs ranging from 6 percent to 9.50 percent.
If employees both wife and husband are employees, anyone can purchase for new home/flat or both are eligible for loans.Only one is eligible for the loan previously.There is no restriction now.Both spouses, if they are central government employees, are now eligible to take HBA either jointly, or separately.
Central Employees Home Loans Up to 25 Lakhs HBA Rules:
- An employee can take advance of 34 basic payment. Maximum limit is 25 lakhs
- If any flat or homes are available below 25 lakhs, the total amount will be payable.
- 8.5% common interest rate have to pay. Interest amount verified every three months.
- The maximum limit is expandable 30 lakh to 1 crore.
- Recovery of the principal first in the first 15 years in 180 monthly installments, and interest after that in next five years in 60 monthly payments.
A senior official in the Housing and Urban Affairs Ministry said that ‘House Building Advance (HBA)’ as compared to borrowing for 20 year period from lending institutions on a Rs 25-lakh.
He explained that if the loan of Rs 25 lakh is taken for 20 years at the prevailing rate 8.35 percent (compound interest) from banks like the SBI, HDFC, Axis the monthly installment comes to Rs 21,459/.
However, if the same amount is borrowed under the HBA at 8.50 percent for twenty years, the monthly installment is Rs 13,890 for first 15 years, and after that employee pay Rs 26,411 per month for the remaining amount, he said.
The Housing and Urban Affairs Ministry makes rules for HBA for central government employees from time to time.
“Employee can borrow up to thirty four months of the BP scale subject to a maximum of Rs 25 lakhs, or cost of the flat, or the amount according to repaying capacity'” as per new HBA rules.
The interest rate on home loan fixed at 8.50 per cent (simple interest) in place of 9.50 per cent, it said, adding the rate will be reviewed every three years.Readmore|SBI cuts interest rates 8.30% and 8.70% on House loans, Car loans