Central Government employees have a low-interest house construction advance – House Building Advance (HBA)

House Building Advance (HBA)

Central Government employees have a low-interest house construction advance

Finance Minister Nirmala Sitharaman said the lowering of interest rates will encourage more government employees to buy new houses as they were “a major contributor” to the overall demand.

New Measures to Boost Housing Sector

Relaxation of ECB guidelines for Affordable housing

• ECB guidelines will be relaxed to facilitate financing for home buyers who are eligible under the PMAY, in consultation with RBI.
• This is in addition to the existing norms for ECB for affordable housing.

House Building Advance

• The interest rate on House Building Advance shall be lowered and linked with the 10 Year G Sec Yields.
• Government servants contribute to a major component of demand for houses. This will encourage more government servants to buy new houses