Big relief to central employees
There is good news for central government employees. The Ministry of Housing and Urban Affairs has issued a new order regarding the interest rate on House Building Advance (HBA) for the financial year 2026-27. This time also the government has not made any change in the interest rate and has kept it at 7.10% only.
What is House Building Advance?
House Building Advance i.e. HBA is a loan given to central government employees for building, purchasing or repairing houses. This facility is available to the employees at a low interest rate, so that they can easily buy or build their own house.
The new rate will be applicable from April 1, 2026
According to the notification issued by the ministry, this interest rate will be applicable from April 1, 2026 to March 31, 2027. That means, during the entire financial year 2026-27, employees will be able to avail the benefit of HBA at the rate of 7.10%. The government has also made it clear that this rate will remain effective until the next order is issued.
Decision after instructions from Finance Ministry
The Ministry of Housing and Urban Affairs has taken this decision on the basis of the office memorandum issued on 9 April 2026 by the Department of Economic Affairs, Ministry of Finance. Under this, the interest rate on house building advance given to central government employees has been fixed.
Employees will get benefits
This decision of the government will provide relief to lakhs of central employees. At present, home loan interest rates in many banks in the market are above 8%. In such a situation, HBA available at the rate of 7.10% is being considered a cheap and beneficial option for the employees.
Experts say that stable interest rates will help employees fulfill their dream of owning a home. Besides, the EMI burden will also be less. This is the reason why many employees prefer HBA instead of bank loan.
