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New Delhi. The Central Government has once again given big relief to its employees. There has been no change in the interest rates of House Building Advance (HBA) for the financial year 2026-27. The government has maintained it at 7.10 percent as before. This decision is expected to benefit lakhs of central employees, especially those who are planning to buy or construct a house.

According to the order issued by the Ministry of Housing and Urban Affairs, the new interest rate will be applicable from April 1, 2026 and will remain effective till March 31, 2027. This means that employees will be able to avail the benefit of house building advance at this rate during the entire financial year.

What is house building advance?

House Building Advance is a special loan given to Central Government employees. Employees can use it to buy a new house, construct a house or repair an old house. This facility is available at a lower interest rate than normal bank loans, hence its demand is quite high among government employees.

Cheaper option than market rates

At present, home loan interest rates in many banks are 8 percent or more. In such a situation, HBA available at the rate of 7.10 percent is considered quite economical for the employees. Experts say that due to the interest rate remaining stable, there will be no additional burden on the monthly installment i.e. EMI of the employees. This will make it easier for middle income group employees to fulfill their dream of owning a house.

Decision on the instructions of Finance Ministry

The government has taken this decision on the basis of the recommendations of the Department of Economic Affairs of the Finance Ministry. Following the guidelines issued by the Ministry, the Ministry of Housing and Urban Affairs issued a new notification. The Government believes that providing housing loans to employees at affordable rates will strengthen their financial security and help in meeting their housing needs.

Government’s decision will increase confidence among employees

HBA has long been considered a reliable scheme for government employees. Due to low interest rate, easy process and stable installments, many employees prefer this scheme over bank loan. According to experts, even if the interest rates in the market increase further in the coming time, HBA can still remain a major option of relief for the employees.