New Delhi: Aiming towards creating more demand for residential real estate, the government today lowered the interest rate on House Building Advance payable to central and state government employees from the existing 8.5 percent to 7.9 percent for the next one year. This would be irrespective of the loan amount. This would be applied with effect from 1st October 2019, the government said in a statement.
The move is expected to help more government employees to go for residential properties and lift the sagging fortunes of the real estate industry in the country. Finance Minister Nirmala Sitharaman had last month said that the interest rate on HBA would be reduced and linked to 10-year government security yields so as to help more government employees to purchase property.
HBA is given to permanent government employees and also to those temporary employees also who have rendered five years of continuous service. They can avail HBA only once during their entire service.