Hi! Welcome to satish24k - It's Not Just Central Government Employeees News, but We Strive To Present You Whatever You Might Be Interested In.......................Chief Editor - kavitaSatish, Just a COMMON MAN with UNCOMMON DREAMS.......... LIFE IS NOT WHAT WE GET FROM BIRTH, IT IS WHAT WE MAKE OUT OF EVERY MOMENT WE LIVE; SO MAKE BEST OUT OF IT.......HAVE A GREAT LIFE

Saturday, February 25, 2012

House Building Advance – How to calculate the interest for HBA




House Building Advance – How to calculate the interest for HBA


House Building Advance to Central Government Employees
 
1.The Scheme of House Building Advance to Central Government Employees is aimed at providing assistance to the Government employees to construct/acquire house/flats of their own.
The scheme was introduced in 1956, as a welfare measure. Ministry of Urban Development & Poverty Alleviation act as the nodal Ministry for the same.
 
2. House Building Advance is admissible to all those temporary employees also who have rendered 10 years of continuous service. The Ministries/Departments are delegated powers to sanction House Building Advance to their employees in accordance with the House Building Advance Rules.
 
3.With effect from 27-11-2008, the following provisions of grant of House Building Advance shall be in operation, until further orders:-
(i).The maximum limit for grant of HBA shall be 34 months’ of pay in the pay band subject to a maximum of Rs. 7.50 lakh or cost of the house or the repaying capacity whichever is the least, for new construction/purchase of new house/flat.
(ii).The maximum limit for grant of HBA for enlargement of existing house shall be 34 months’ pay in the pay band subject to a maximum of Rs. 1.80 lakh or cost of the enlargement or repaying capacity, whichever is the least.
(iii).The cost ceiling limit shall be 134 times the pay in the pay band subject to a minimum of Rs.7.50 lakh and a maximum of Rs.30 lakh relaxable up to a maximum of 25% of the revised maximum cost ceiling of Rs.30 lakh.
 
4. The rate of interest on House Building Advance is between 5% to 9.5% ,depending on the loan amount.
 
5. The repaying capacity of Govt. servants who have more than 20 years of remaining service has been revised from 35% to 40% of pay. (Pay means pay in the pay band).
 
6. The salient features of House Building Advance Rules are as follows-
 
1. ELIGIBILITY
  • Permanent Government employees.
  • Temporary Government employees who have rendered at least 10 years continuous service.
  • To be granted once during the entire service.
If both the husband and wife are Government of India employees and eligible for HBA, it shall be admissible to only one of them.
 
2. PURPOSE
HBA is granted for:
  1. Constructing a new house on the plot owned by the official or the Official and the Official’s wife/husband jointly.
  2. Purchasing a plot and constructing a house thereon.
  3. Purchasing a plot under Co-operative Schemes and Constructing a house thereon or acquiring house through membership of Co-operative Group Housing Scheme.
  4. Purchasing /construction of house under the Self-Financing scheme of Delhi, Bangalore, U.P., Lucknow etc.
  5. Outright purchase of new ready-built house/flat Housing boards, Development Authorities and other statutory or semi-Government bodies and also from private parties.*
  6. Enlarging living accommodation in an existing house owned by the official or jointly with his/her wife/husband. The total cost of the existing structure (excluding cost of land) and the proposed additions should not exceed the prescribed cost ceiling.
  7. Repayment of loan or advance taken from a Government or HUDCO or Private source even if the construction has already Commenced, subject to certain conditions.
  8. Constructing the residential portion only of the building on a Plot which is earmarked as a shop-cum-residential plot in a Residential colony.
* Private party means registered builders but not private individuals.
 
3. CONDITIONS:
a) The applicant or spouse or minor child should not already own a house in the town/Urban agglomeration where the house is proposed to be constructed or acquired.
 
b) The title to the land should be clear. The land may be owned either:- by the Government employee; or – jointly by the Government employee and spouse.
 
c) COST CEILING                                           
134 times of pay in the pay band subject to a minimum of Rs. 7.50 lakh and a maximum of Rs.30 lakh
Administrative Ministry may relax the cost ceiling   to 25% of cost ceiling mentioned above in the individual cases on merits.
(Effective from 27th November, 2008)
 
d) AMOUNT OF ADVANCE:
  • will be the LEAST of the following:-
(i) 34 times the pay in the pay band.
(ii) The cost of construction.**
(iii) Rs. 7,50,000/- ***
(iv) Repaying Capacity.
** 80% of cost in rural areas.
*** Rs. 1,80,000/- in case of enlargement of existing house.
e) REPAYING CAPACITY:-
Repaying Capacity is computed on the following basis:-
S. No.
Length of remaining service of the applicant.
Repaying Capacity
1.
Retiring after 20 years.
40% of pay @
2.
Retiring after 10 years but not later than 20 years.
40% of pay @ plus 65% of * Retirement Gratuity
3.
Retiring within 10 years
50% of pay @ plus 75% of * Retirement Gratuity.
@ Pay means pay in the pay band
 
4. DISBURSEMENT OF ADVANCE:
S. No.
Purpose of HBA
Disbursement
(1)
(2)
(3)
(i)
For construction/enlargement (single or double storeyed).
50% -
50%
on execution of mortgage deed
on construction reaching plinth level (Ground Floor).
(ii)
For purchase of land and construction (Single storeyed)
40% or –
actual cost
30% –

30% –
for purchase of plot on execution of agreement and production of Surety Bond.
On execution of Mortgage deed.
On construction reaching plinth level.  
(iii)
For purchase of land and construction (Double storeyed)
35% or actual cost
32.5% –

32.5% –
for purchase of plot on execution of agreement and production of Surety bond.
On execution of the mortgage deed.
On construction reaching the plinth level.  
(iv)
For purchase of ready built house/flat
100% – in one lumpsum.
(v)
For acquiring flat/house from Co-operative Group Housing Society.
20% –
80% –
Towards purchase of land by the Society.
in suitable installments on receipt of demand (pro-rate basis)
(vi)
For purchase of flat under SFS of Development Authorities etc.
 
No payment for initial registration Deposit.
May be released in not more than 5 instalments. But the fifth and final instalment should not be less than 10% and is to be released for making final payment.
 
5. TIME SCHEDULE FOR UTILISATION OF HBA:
S. No.
Purpose
Time limit
(a)
Purchase of registered plot on which construction can commence immediately.
Sale deed to be produced within 2 months.
(b)
Purchase of ready built house.
Acquisition and mortgage to Government to be completed within 3 months.
(c)
Purchase/construction of new flat
Should be utilised within one month of sanction.
 
6. REPAYMENT OF ADVANCE:
The recovery of advance shall be made in not more than 180 monthly installment and interest shall be recovered thereafter in not more than 60 monthly installments. In case Government servant is retiring before 20 years, repayment may be made in convenient installments and balance may be paid out of Retirement Gratuity.
 
7. INTEREST
The rate of interest on Housing Building Advance with effect from 1st April, 2003 are as follows:-
S. No.
Amount of Advance sanctioned to a Government Servant
Rate of Interest on HBA (Per Annum).
1.
Upto Rs. 50,000/-
5%
2.
Upto Rs. 1,50,000
6.5%
3.
Upto Rs. 5,00,000/-
8.5%
4.
Upto Rs. 7,50,000/-
9.5%
 
8.COMMENCEMENT OF RECOVERY:
Construction of a house or enlargement of living accommodation
* From pay for the month following the completion.
Or
The pay for the 18th month after date of payment of the 1stinstallment, whichever is earlier.
Purchase of land and construction.
* From pay for the month following the completion of the house.
Or
The pay for the 24th month after date of drawl of installment for purchase of land, whichever is earlier.
COMMENCEMENT OF RECOVERY(CONT’D):
Ready built flat.
* Pay for the month following the month in which advance was drawn.
Purchase of Flat under SFS from Development Authority/Housing Society.
* From the pay for the 18thmonth after date of payment of 1st installment.
* The sanctions of HBA should invariable stipulate a higher rate of interest at 2.5% above prescribed rates with the stipulation that if conditions attached to the sanction are fulfilled, rebate of interest to the extent of 2.5% will be
allowed.
 
9. CREATION OF SECOND MORTGAGE:
The Government servants who have obtained HBA from the Government may be permitted to create a second charge on the property provided they obtain prior permission of the Head of the Department and the draft deed of second mortgage is submitted to the Head of the Department for scrutiny. Such a second charge may be created only in respect of loans to be granted for meeting the balance cost of houses/flats by recognised financial institutions.
 
10.PROVISIONS FOR SAFE RECOVERY OF HOUSE BUILDING ADVANCE:   
 
(i). As a safeguard of the House Building advance, the loanee Government employee has to insure the house immediately on completion or purchase of the house, as the case may be, at his own cost with Life Insurance Corporation of India and its associated units.   The house/flat constructed/purchased with the help of House Building advance can also be insured with the private insurance companies which are approved by Insurance Regulatory Development Authority(IRDA). However, the insurance should be taken for a sum not less than the amount of advance against damage by fire, flood and lightning, and has to be continued till the advance together with interest is fully repaid to Government.
 
 
(ii).The house constructed/purchased with the help of House Building Advance has also be mortgaged in favour of the President of India within a stipulated time unless an extension of time is granted by the concerned Head of the Department. After completion of the recovery of the advance together with interest thereon, the mortgage deed is re-conveyed in a proper
manner.

Here we have given an example, how to calculate the interest amount for House Building Advance.
An employee has drawn House Building Advance as two installments of Rs.163750.
His first installment given on October 98 and the second installment on July 99.
He started to repay from November 99 with monthly Rs.1500.
Here we calculate the interest amount for the employee has to pay…

Year/Month

IBB

Installment

Interest

Oct-98

81875

716
Nov-98
81875

716
Dec-98
81875

716
Jan-99
81875

716
Feb-99
81875

716
Mar-99
81875

716
Apr-99
81875

716
May-99
81875

716
Jun-99
81875

716

Jul-99

163750

1433
Aug-99
163750

1433
Sep-99
163750

1433
Oct-99
163750

1433
1

Nov-99

162250

1500

1420
2
Dec-99

160750

1500

1407
3
Jan-00

159250

1500

1393
4
Feb-00

157750

1500

1380
5
Mar-00

156250

1500

1367
6
Apr-00

154750

1500

1354
7
May-00

153250

1500

1341
8
Jun-00

151750

1500

1328
9
Jul-00

150250

1500

1315
10
Aug-00

148750

1500

1302
11
Sep-00

147250

1500

1288
12
Oct-00

145750

1500

1275
13
Nov-00

144250

1500

1262
14
Dec-00

142750

1500

1249
15
Jan-01

141250

1500

1236
16
Feb-01

139750

1500

1223
17
Mar-01

138250

1500

1210
18
Apr-01

136750

1500

1197
19
May-01

135250

1500

1183
20
Jun-01

133750

1500

1170
21
Jul-01

132250

1500

1157
22
Aug-01

130750

1500

1144
23
Sep-01

129250

1500

1131
24
Oct-01

127750

1500

1118
25
Nov-01

126250

1500

1105
26
Dec-01

124750

1500

1092
27
Jan-02

123250

1500

1078
28
Feb-02

121750

1500

1065
29
Mar-02

120250

1500

1052
30
Apr-02

118750

1500

1039
31
May-02

117250

1500

1026
32
Jun-02

115750

1500

1013
33
Jul-02

114250

1500

1000
34
Aug-02

112750

1500

987
35
Sep-02

111250

1500

973
36
Oct-02

109750

1500

960
37
Nov-02

108250

1500

947
38
Dec-02

106750

1500

934
39
Jan-03

105250

1500

921
40
Feb-03

103750

1500

908
41
Mar-03

102250

1500

895
42
Apr-03

100750

1500

882
43
May-03

99250

1500

868
44
Jun-03

97750

1500

855
45
Jul-03

96250

1500

842
46
Aug-03

94750

1500

829
47
Sep-03

93250

1500

816
48
Oct-03

91750

1500

803
49
Nov-03

90250

1500

790
50
Dec-03

88750

1500

777
51
Jan-04

87250

1500

763
52
Feb-04

85750

1500

750
53
Mar-04

84250

1500

737
54
Apr-04

82750

1500

724
55
May-04

81250

1500

711
56
Jun-04

79750

1500

698
57
Jul-04

78250

1500

685
58
Aug-04

76750

1500

672
59
Sep-04

75250

1500

658
60
Oct-04

73750

1500

645
61
Nov-04

72250

1500

632
62
Dec-04

70750

1500

619
63
Jan-05

69250

1500

606
64
Feb-05

67750

1500

593
65
Mar-05

66250

1500

580
66
Apr-05

64750

1500

567
67
May-05

63250

1500

553
68
Jun-05

61750

1500

540
69
Jul-05

60250

1500

527
70
Aug-05

58750

1500

514
71
Sep-05

57250

1500

501
72
Oct-05

55750

1500

488
73
Nov-05

54250

1500

475
74
Dec-05

52750

1500

462
75
Jan-06

51250

1500

448
76
Feb-06

49750

1500

435
77
Mar-06

48250

1500

422
78
Apr-06

46750

1500

409
79
May-06

45250

1500

396
80
Jun-06

43750

1500

383
81
Jul-06

42250

1500

370
82
Aug-06

40750

1500

357
83
Sep-06

39250

1500

343
84
Oct-06

37750

1500

330
85
Nov-06

36250

1500

317
86
Dec-06

34750

1500

304
87
Jan-07

33250

1500

291
88
Feb-07

31750

1500

278
89
Mar-07

30250

1500

265
90
Apr-07

28750

1500

252
91
May-07

27250

1500

238
92
Jun-07

25750

1500

225
93
Jul-07

24250

1500

212
94
Aug-07

22750

1500

199
95
Sep-07

21250

1500

186
96
Oct-07

19750

1500

173
97
Nov-07

18250

1500

160
98
Dec-07

16750

1500

147
99
Jan-08

15250

1500

133
100
Feb-08

13750

1500

120
101
Mar-08

12250

1500

107
102
Apr-08

10750

1500

94
103
May-08

9250

1500

81
104
Jun-08

7750

1500

68
105
Jul-08

6250

1500

55
106
Aug-08

4750

1500

42
107
Sep-08

3250

1500

28
108
Oct-08

1750

1500

15
109
Nov-08

250

1500

2
110
Dec-08
0

250

0

10248125
163750

89671
Share and Care
 For Latest Updates Always Visit http://satish24k.blogspot.com/
Print Friendly and PDFPrintPrint Friendly and PDFPDF


For Further Reading,
ALLOWANCES, EMPLOYEES NEWS, HBA, INCOME TAX, LATEST POSTAL NEWS

0 comments:

By Blog Gadgets

Choose Your Subject

2013 WALLPAPERS 7th Pay Commission AADHAR ACCOUNTS AIPEU AIR INDIA AIRF AIRTRAVEL ALLOWANCES AMAGING AMAZING ANNA HAZARE ANOMALY ANTI CORRUPTION MOVEMENT AUTISM BABIES BANKING BIRDS WALLPAPERS BLOGGING BONUS BSNL BUDGET Cadre Restructure Calenders CANCER CASUAL LABOURS CAT CAT Orders CBSE CCL CCS CCS PENSION CCS(JT) Rules 1979 CGHS CHARTS CHILD CARE Child Care Allowance CHILDREN EDUCATION ALLOWANCE CHINA CIRCULARS Compassionate Appointment CONSUMER NEWS Conveyance Allowance Court Orders CPWD CREATIVITY CRICKET. SPORTS WALLPAPERS CSD CSS CVC Cycle Maintenance Allowance DA DA MERGER DEFENCE DEFENSE DIGITAL INDIA DIGITAL LIFE CERTIFICATE DISABLED DOPT DOWNLOAD DPE DRDO eCards ECHS EDUCATION eMO EMPLOYEES NEWS EMPLOYMENT NEWS ENTERTAINMENT EPFO ESTATES EX SERVICEMEN EXAMINATIONS FACEBOOK FAQs FDI FESTIVALS FIGHT FOR JUSTICE FINANCE BILL 2013 FINMIN FLOWERS FORMs FUNNY PICTURES g GADGETS Ganesha Wallpapers GDS GENERAL KNOWLEDGE GENERAL KNOWLEDGE - CURRENT AFFAIRS GOD WALLPAPERS GPF GREETINGS Group B HBA HEALTH HIGH DEFINITION WALLPAPER HOLIDAYS Hostel Subsidy Allowance HRA IAS IBA IDA INCOME TAX INCREMENT INDEPENDENCE DAY INDEX NUMBERS INDIA INSURANCE INVESTMENT IP/ASP IPO Exam ISLAM JOINING TIME KIDS KVS LATEST POSTAL NEWS Latest Releases from PIB LEAVE LOKAYUKTA LOVE LTC MACPS MAKE IN INDIA MEDICAL Meghdoot Millennium MHA MOBILE BANKING MOBILE WALLPAPERS MOF MOTHER MY CORNER NATURE WALLPAPERS NEGATIVE LIST NEWS NPS One Rank One Pension ORDERS ORDINANCE PARLIAMENT NEWS PENSION People you must know PERSMIN PERSONALITY DEVELOPMENT PERSONOLITY DEVELOPMENT PFRDA POLITICS POSTAL TECHNOLOGY Postings PPF Promotions QUESTION PAPERS QUOTES RAILWAY NEWS RAJYASABHA NEWS RBI RECRUITMENT REIMBURSEMENT RELIGION REPUBLIC DAY RESERVATION RESULTS Retirement Age RTI SANATANA DHARMA Sanchaya Post SAPOST SBCO SC SCIENCE SCOVA SECULAR SEXUAL HARASSMENT SKIN CARE SLEEP SMS SMS-GOODNIGHT SPEEDNET ST Study Material TATKAL TEACHERS TECHNOLOGY TECHNOLOGY TIPS TERRORISM TRANSFER TRAVEL Travelling Allowance Troubleshooting Problems in Postal Applications UNION NEWS UPSC VIDEOS Virus Wallpapers Washing Allowance WILD PHOTOGRAPHY WOMAN ಕನ್ನಡಿಗ

Popular Posts of the Month

All Time Popular Posts

 
Blogger Wordpress Gadgets