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Employees of the Central Government can now get a house building loan at a lower interest rate

The central government has decreased the interest rate on home construction loans by 80 basis points, providing major relief to its employees.

Employees of the central government can now get home construction loans at a 7.10% interest rate, down from 7.90% before.


This rebate will be available for home loans taken out between April 1 and March 31 of this year. The lower loan rate on House Building Advance (HBA) would assist central government personnel in building their own homes.

The Ministry of Housing and Urban Affairs made it known about the interest rate modification via an “Office Memorandum,” which is a type of circular or order.


From October 1, 2020, through March 31, 2022, the House Building Advance for central government personnel remained at 7.90%.

Central government workers can borrow up to 34 months of their basic pay under the HBA, up to a maximum of 25 lakh. This figure was determined following the 7th Pay Commission’s recommendations and the HBA 2017 guidelines.


Employees can utilise this service to repay bank debts taken out to build or buy a new flat or house. They are eligible for HBA as soon as they acquire a loan from a bank or other financial institution.

The HBA is a good offer for central government employees since it has a low-interest rate. The principal is to be repaid in monthly instalments throughout the first 15 years. Over the following five years, the interest will be paid in monthly installments.