Bhubaneswar: Expressing concern over difficulties faced by State Government employees on repayment of housing loans, Principal Secretary Finance, Vishal Kumar Dev has revised the norms for admissibility limit of House Building Advance in respect of State Government employees.
Principal Secretary Shri Dev has issued detailed revised guidelines and as per the revised norms, House Building Advance (HBA) sanctioned in respect of Government Employees can also be utilised for repayment of bank loan taken previously for the purpose of purchasing land and construction of building thereon.
Employees concerned will have to submit a statement on outstanding home loan duly signed by the concerned branch manager of the bank along with an undertaking to mortgage the property with the Government after full payment of debts /outstanding of the bank before the sanctioning authority, the order said.
After due verification, the advance amount will be released for repayment of Bank loan, Principal Secretary Shri Dev said.
“The amount of House Building Advance in favour of Government Employees shall be released in one instalment in case of repayment of outstanding home loan taken from Bank. The outstanding amount of home loan from the bank should be within the eligibility limit of the concerned Government employees,” the Principal Secretary said.
All other conditions as stipulated by the Finance Department in its earlier notification will remain unaltered.
Shri Dev made it clear that only the banks listed under the second schedule of the RBI Act, 1934, will be considered under the new provision.
Taking the Finance Department for this move, a newly recruited government employee said this revision of norms will help him in repayment of his existing housing loan that he had availed prior to his appointment in the Government.
Earlier, to encourage Government employees to purchase electric vehicles to control the pollution emerging from fossil fuel used in vehicle plying on the road, the Finance Department has in-principle decided to sanction interest free advance in favour of Government employees to buy EV.