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If you are in a government job and are having trouble repaying the home loan taken from the bank, then there is good news for you. The central government gives its employees the benefit of a scheme that can help in building a house or repaying an old loan. The name of this scheme is House Building Advance, which is called HBA Yojana.

This scheme is for those government employees who want to build their own house, buy a new house, or are troubled by the EMI of the expensive loan already taken. Under this scheme, the government gives an advance of up to Rs 25 lakh to the employees, on which only 7.44 percent annual interest has to be paid.

What is the House Building Advance Scheme?

House Building Advance, i.e., HBA, is a special financial help given by the Central Government. Its purpose is that people doing government jobs can build their house or repay the old loan without paying much interest. This amount can also be used to reimburse the home loan taken from any recognized bank, housing finance company, or any institution. That is, if you have already taken a loan from a private bank and its EMI is very high, then you can repay that loan by taking an advance from the government at a lower interest rate.

How much money can be received?

In this scheme, the government gives any employee as much money as his basic salary for 34 months or Rs 25 lakh, whichever is less. This means that if the amount according to your basic salary is 20 lakhs, then you will get the same, not 25 lakhs.

If you want to do some work inside the house, like adding a new room, getting an upper floor built, or getting repairs done, then for this, an advance of up to Rs 10 lakh can be taken. Another special thing is that if both the husband and wife are government employees, then both can get this facility separately. That is, in total, a single family can get an advance of up to Rs 50 lakh.

What can be done with this money?
This advance from the government is not just for building a house; it can be used for many other works as well. For example, if you have already taken a home loan and now its EMI is becoming heavy, then that loan can be repaid with this advance. If you want to build a new house of your own, then this money can be used for everything from buying land to building a house. If the condition of your old house is bad, then this money can also be used for its repair or expansion.

Who will get the benefit?

This scheme is currently for the employees of the Central Government. In this, the amount of advance is decided by adding your basic salary as well as some other allowances. For example, if a doctor gets a non-practicing allowance or someone is getting a family pension, then that amount is also added to it.

The interest rate in this scheme is fixed.

The interest rate in this scheme is fixed at 7.44 percent annually. This interest is very low compared to the home loans available in the market. Because of this, you get a lot of benefits in the long term. The loan installments also have to be repaid gradually, which does not put much pressure on the monthly budget.

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