Maximum Amount of HBA and repaying Capacity Calculation
Amount of Advance
1. Only one advance shall be sanctioned to the government servant during his/ her entire service.
2. The maximum amount of advance shall be:
a) 34 months basic pay subject to a maximum of Rs. 25.00 lakhs only (Rs. Twenty-five lakhs), or cost of the house/flat, or the amount according to repaying Capacity, whichever is the least for construction/purchase of new house/flat.
b) For expansion of existing house, the amount of HBA will be limited to 34 months basic pay subject to maximum of Rs.10.00 lakhs only (RS. Ten lakhs), or the Cost of the expansion, or the amount according to repaying capacity, whichever is the least.
c) The amount of the advance shall be restricted to 80% of true Cost of the land and construction of house or cost of expansion of living accommodation in the case of Construction in rural areas. This can be relaxed and 100% can be Sanctioned if the Head of the Department certifies that the concerned rural area falls within the periphery of town or city.
6. Repayment Capacity
For the purpose of Calculating the admissible loan amount, the repayment capacity of the Central government employee shall be calculated as below: