7th Pay Commission: Central employees get cheaper loans from the government to build houses, know what is the way
The central government provides a lot of facilities to its employees besides salary and allowance. Central employees also get the facility of house building advance home loan. This loan has also increased under the 7th Pay Commission. From October 1, 2019, the government is charging 7.9 percent annual interest on this loan. A maximum amount of Rs 25 lakh or equivalent to basic salary of 34 months can be got as house building advance.
If the central employee is building a new residence, then the government can get an advance of a maximum of Rs 25 lakh or the equivalent of 34 months basic salary. Not only this, if he is expanding or renovating the existing house, then he can get help of up to Rs 10 lakh. The scheme benefits all the permanent employees of the central government. Apart from this, employees serving continuously for at least 5 years will also be able to take advantage of this.
Apart from this, members of the All India Service who have been appointed to the service under the Central Government. Union Territories and North East Frontier Agency employees are also eligible to take advantage of this. The government has also approved the staff of AIR for this scheme. Central employees who are covered under the Payment of Wages Act 1936 and those who are appointed in any other department or foreign service. They also fall in this realm. Ex-servicemen and suspended employees who meet the existing rules eligibility condition can also take advantage of it.
Let us know, under which conditions central employees can take advantage of the house building advance…
– For the construction of new house on his plot. – Plot to buy. – To purchase a plot from a co-operative or group housing society. – On buying a house from self-financing scheme.
– When buying a flat or ready new house. – On the extension of the purchased building itself.
– For the repair of loans taken from Government, Housing and Urban Development Corporation Limited (HUDCO) or private source.
– For the construction of residential portions of the building on the shop-cum-residential plot.