7th Pay Commission: Central Govt employees can get HBA up to ₹25 lakh at just 7.44% in FY 2025-26

7th Pay Commission House Building Advance (HBA) for FY 2025-26: Central Government employees can get the HBA at just 7.44% in FY 2025-26. The government recently kept the HBA interest rate for the current financial year unchanged.

"In pursuance of Department of Economic Affairs, Ministry of Finance OM No 5(2)-B(PD)/2025 dated 24.03.2025, the interest rate applicable on House Building Advance sanctioned to Central Government Employees for the financial year 2025-26 (from 1st April 2025 to 31st march 2026) will remain unchanged at 7.44% until further orders," the Ministry of Housing & Urban Affairs said in an Office Memorandum dated March 27, 2025.

The HBA interest rate in FY 2024-25 was also 7.44% while in FY 2023-24, it was 7.5%.

The Central Government provides interest-bearing house building advance to its employees as per the recommendations of the 7th Pay Commission for some of the following purposes:

• Purchase of a new ready-built house/ flat
• Construction of a new house
• Purchase of a plot for constructing a house
• Expansion of living accommodation
• Purchase of ready-built houses or flats from housing boards, development authorities, registered builders, etc.
• Repayment of loans or advances taken from a Government Bank or HUDCO or private sources if the construction of the property has commenced.

How much HBA is allowed?

• 34 times Basic Pay
• ₹25 lakh
• Anticipated price of the house

Existing employees who have already taken home loans from banks and other financial institutions are allowed to migrate to this scheme.