- Quantum of amount paid under HBA increases
- Over 3 lakh employees to benefit
The Government of Odisha has increased the quantum of amount paid under House-building advance (HBA) to Rs 40 lakh from previous Rs 25 lakh. The HBA advance, payable to government servants, commands a flat rate of interest of 8%. The measure would benefit at least 3 lakh government servants.
The government charges 6% interest on HBA quantum up to Rs 50,000. Previously, it used to levy an interest of 11.5% on HBA of Rs 25 lakh. However, the government revised the interest rates recently. It applies 8% rate of interest on HBA up to Rs 40 lakh. The Government said that only government employees are eligible to receive the loan, which is disbursed in the ratio of 60:40 in two installments. A government officer who wished to remain anonymous said that the Odisha government slashed the rate of interest to 8% as the Centre reduced the interest on BHA to 7.1%.
