7th Pay Commission Latest News: On the one hand, RBI has again cleared the way for home loans to become costlier by increasing the repo rate by 50 basis points i.e. 0.50 percent. After this decision of RBI, from banks to housing finance companies can make home loans expensive, due to which EMI is sure to be expensive. But the Central Government Employees do not need to worry about expensive loans. Because the government is giving them the benefit of cheap home loans. With which they can fulfill their dream of housing by taking cheap loans.
Even though RBI is making loans costlier, but the central government has reduced the interest rates on Housing Building Advance for its central employees in the financial year 2022-23. The Ministry of Urban Development has reduced the interest rate on Housing Building Advance (HBA) to 7.1 percent for the current financial year. Whereas after increasing the repo rate of RBI, the interest rates on home loans are going to increase from 8.50 to 9 percent.
Housing Building Advance at 7.1%
The central government fixes the interest rate on housing building advance based on the yield (return) of 10-year government bonds. For central employees in 2021-22, where the interest rate on housing building advance used to be 7.9 percent. Now it has been reduced to 7.1 percent. Central employees can get their house constructed by taking Housing Building Advance, then they can also buy flats for themselves.
You can take loan up to Rs 25 lakh
According to the recommendations of the 7th Pay Commission and Housing Building Advance 2017 Rules, central employees can take a basic salary of 34 months or a maximum of Rs 25 lakh as advance for construction or purchase of a house. Housing building advance is available at simple interest rate. According to the Housing Building Advance Rules, the principal amount of the loan has to be repaid in 180 EMIs in the first 15 years, then the interest on the loan has to be paid in 60 EMIs in five years. Housing Building Advance can also be taken to repay the loan taken from the bank. could.
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