7th Pay Commission Latest News: RBI can again increase the repo rate by 0.25 percent to 0.35 percent on September 30, 2022. After which the home loan can become more expensive. So the EMI of those who have already taken home loan is going to be expensive. But there is good news for the central employees who want to buy their house. The increase in the repo rate of RBI is not going to have any effect on the Central Government Employees. Because the Modi government at the Center is giving loans to government employees to build or buy houses at a lower rate than the market.
RBI is making loans expensive but the central government has reduced the interest rates on Housing Building Advance for its central employees in the financial year 2022-23. The Ministry of Urban Development has reduced the interest rate on Housing Building Advance (HBA) to 7.1 percent for the current financial year. Whereas after increasing the repo rate of RBI, the interest rates on home loans are going to increase from 8.50 to 9 percent.
Housing Building Advance at 7.1%
The central government fixes the interest rate on housing building advance based on the yield (return) of 10-year government bonds. For central employees in 2021-22, where the interest rate on housing building advance used to be 7.9 percent. Now it has been reduced to 7.1 percent. Central employees can get their house constructed by taking housing building advance and can also buy flats.
You can take loan up to Rs 25 lakh
According to the recommendations of the Seventh Pay Commission (7th Pay Commission) and the Housing Building Advance 2017 Rules, central employees can take a basic salary of 34 months or a maximum of Rs 25 lakh as advance for construction or purchase of a house. Housing building advance is available at simple interest rate. According to the Housing Building Advance rule, the principal amount of the loan has to be paid in 180 EMIs in the first 15 years, then the interest on the loan has to be paid in 60 EMIs in five years. Housing building advance can also be taken to repay the loan taken from the bank. Then what is the delay, take advantage of this cheap loan immediately.
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