New Delhi: While announcing a slew of measure to revive the ailing economy of the country, Union Finance Minister Nirmala Sitharaman on Saturday announced relief measure for government employees who are looking for constructing their own houses.
The government announced to lower the interest rate for House Building Advance (HBA). This measure is going to help many central government employees.
“The government has planned to relax the ECB norms for financing home buyers of Pradhan Mantri Awas Yojana (PMAY) after discussion with RBI,” Sitharaman said on Saturday.
Saying that government employees contribute a major component of demand for housing, Sitharaman said the move will encourage more employees to buy new houses.
She said the interest rate on HBA would be lowered by linking it with 10-year government securities and added that there would be special window for affordable and middle-income housing.
With the objective to complete unfinished projects, a special window of Rs 10,000 crore fund will be opened to provide last-mile funding for housing projects which are non-NCLT, non-NPA cases to complete unfinished projects.
Prior to this, the Central government had revised the HBA rules for the central government employees.
What is HBA?
House Building Advance or the HBA is generally offered to Central government employees with the objective to help them buy houses.