If you are a central govt employee or as a matter of fact any state govt employee also than you must consider going for this specific loan which caters for home loan segment and goes by the name as House Building Advance (HBA) Scheme of Central Government.
Why One Must take House Building Advance (HBA)?
- It charges interest rate from 6.5% to 8.5% from the year 2003 as per loan being sanctioned.
- Remember that PSU banks or financial institutions charge more than 10.5 % and they charge on EMI basis where interest is deducted first and than principle is reduced whereas in HBA the principle is reduced first and in the end interest is reduced.
How House Building Advance (HBA) Eligibility for Amount is Calculated?
- Maximum ceiling of HBA is Rs.7.5 lakhs.
- It is calculated as per number of times of pay in pay band and eligible HBA amount is 34 times only.
- Permissible EMI is 180
So, as a govt employee you are getting a loan at very nominal rate and you must exercise this option to get the best home loan deal for your dream home.