House Building Advance: Rates of Interest

No.F(E)Spl.86/ADV/3/9, dated 04.08.1986

Sub: Grant of House Building Advance to Railway employees – Rates of interest and simplified procedure for calculation of interest.

1. The House Building Advance granted to the Railway employees carries a slab rate of interest from 7% per annum to 12% as prescribed in item V of the Ministry of Works & Housing O.M. No.I/17011/6/83H.III, dated 07.04.1984 circulated under this Department’s letter No.F(E)Spl.84/ADV/3/2, dated 12.04.1984. It has, however, been found that the slab rates of interest involved considerable and complicated work in the calculation of interest. In order to simplify the procedure for calculating the interest by the various authorities and also to facilitate checking of the correctness of the amount of interest by the loanee employees themselves, it has been decided to adopt uniform rates of interest in place of slab rates of interest contained in item V of the aforesaid O.M. dated 07.04.1984. The revised rates of interest on the House Building Advance will be as follows:-

(1) If the sanctioned amount of HBA is up to Rs.25000 – 7%

(2) If the sanctioned amount of HBA is up to Rs.50000 – 7-1/2%

(3) If the sanctioned amount of HBA is up to Rs.75000 – 8%

(4) If the sanctioned amount of HBA is up to Rs.1 lakh – 8-1/2%

(5) If the sanctioned amount of HBA is up to Rs.1.25 lakh  – 9%

2. The above rates of interest will come into force with immediate effect. The rates will also be applicable to the past cases of HBA sanctioned from 01.06.1981 where recovery of interest has not yet commenced.

Download Railway Board Circular dated 04.08.1986

Forward reference ⇒ RBE No.369/1987,