7th Pay Commission Interest bearing advances
Government of India
Ministry of Housing & Urban Affairs
Nirman Bhawan, New Delhi,
Subject: Interest bearing advances/Seventh Central Pay commission recommendation on migration of existing government employees who have already taken Home Loans from Banks/other Financial Institutions — reg.
Kind attention is invited to pars 2(viii) of this Ministry’s O.M.No.I- 17011/11(4)2016-H.III dated 09.11.2017 on the above mentioned subject regarding fulfilment of extant conditions, the extant conditions are clarified as follows.
a) Before granting such House Building Advance, the Head of the Departrnent
i. Should satisfy himself that the home loans were taken by the government employee entirely for purpose of construction/ purchase of new house/ flat.
ii. Should ensure that the House Building Advance sanctioned is limited to the amount of loan still due to be repaid by the government employee.
b) House Building Advance can be availed towards repayment of bank loan taken for the purpose of construction/ purchase of new house/ flat.
c) Employee shall be eligible for grant of House Building Advance on the date he/ she obtained loans from banks and other financial institutions, irrespective of whether they applied for House Building Advance before raising the loan.
d) House Building Advance for repayment of loans shall be granted to the eligible employees in one lump sum. However, the Government employee shall produce the HBA Utilization Certificate within one month from the date of release of HBA.
e) Employee has to satisfy the other provisions of the House Building Advance Rules -2017.
(Shailendra Vikram Singh)