Home Loan limit for Central Govt Employees Raised to Rs 25 lakh

Incorporating the accepted recommendations of the 7th Pay Commission, the government has raised the maximum amount that a central government employee can borrow from the government to Rs 25 lakh for new construction/purchase of new house/flat. Earlier this limit was only Rs 7.50 lakh. The move is going to benefit about 50 lakh central government employees across the country. Revising the house building advance (HBA) rules incorporating the accepted recommendations of the 7th Pay Commission, the government also increased the amount that a central government employee can borrow for expansion of their homes to 34 months of basic pay to a maximum of Rs 10 lakh, from Rs 1.80 lakh earlier.

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