Home Loan Repayment Help HBA Scheme Benefits
If you are in a government job and are having trouble repaying home loans taken from the bank, then there is good news for you. The central government gives its employees the benefit of a scheme, which can help in building a house or repaying the old debt. The name of this scheme is House Building Advance, which is called HBA scheme.
This scheme is for government employees who want to build their own house, want to buy a new house or are troubled by the EMI of expensive loans already taken. Under this scheme, the government gives advances up to Rs 25 lakh to the employees, on which only 7.44 percent interest has to be paid.
What is House Building Advance Scheme?
House Building Advance i.e. HBA is a special financial help given by the Central Government. The aim is that people doing government jobs can build their house without paying more interest or can pay old debt. This amount can also be used to compensate for home loans taken from any recognized bank, housing finance company or any institution. That is, if you have already taken a loan from a private bank and its EMI is very high, then you can pay the loan by taking advance at low interest than the government.
How much money can you get?
The government gives as much money to any employee in this scheme as his 34 -month basic salary is made or 25 lakh rupees, whichever is less. This means that if the amount is made 20 lakhs according to your basic salary, then you will get the same, not 25 lakhs.
If you want to add some work inside the house like adding a new room, to make or repair up above, then up to 10 lakh rupees can also be taken for this. Another special thing is that if both husband and wife are government employees, then both can get this facility separately. That is, in total, the same family can get advance up to 50 lakh rupees.
What can happen with this money?
This advanced advance from the government is not only to build a house, it can also be used in many more works. For example, if you have already taken a home loan and now its EMI is getting heavy, then that loan can be repaid from this advance. If you want to build your own new house, then you can spend from buying land from this money to building a house. If the condition of your old house is bad, then this money can also be found for its repair or expansion.
Who will benefit people?
This scheme is currently for central government employees. In this, the amount of advance is fixed by adding your basic salary as well as some other allowances. For example, if a doctor gets a non-acting allowance, or if a family is getting pension, then that amount is also added to it.
Interest rate is fixed in this scheme
The interest rate in this scheme is fixed, 7.44 percent annually. This interest is much lower than the home loan found in the market. Because of this, you get a lot of benefit in the long term. Loan installments also have to be repaid gradually, which does not put much pressure on the monthly budget.