Team Herald
PANJIM: The State government has decided to charge prevailing bank interests to the outstanding housing loan advance from June onwards.
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A circular issued by Under Secretary Maya Pednekar Budget –II says the Government has withdrawn/closed the House Building Advance (HBA) Rules Scheme extended to its employees with effect from May 15, 2020.
“It is brought to the notice that 45 HBAs have been sanctioned by the sanctioning authority/head of department and pending disbursement. Now, therefore, in order to streamline the repayments of outstanding House Building Advances already sanctioned under the then existing scheme, it is decided all outstanding House Building Advances shall be charged interest at the prevailing bank rate w.e.f. 15/05/2020 and the monthly instalments towards HBA payable shall be revised accordingly,” the circular says.
The circular says that the Bank of India may disburse HBA to the 45 applicants whose cases have been sanctioned and are pending with Bank as on May 15, 2020 at the prevailing bank rate.
“Bank guarantee issued shall be withdrawn in a phased manner within a period of one year i.e. by 15/05/2021. Accordingly, Bank of India shall release the guarantee of Rs 300.00 crore @ the rate of Rs 75.00 crore in each quarter. Bank of India shall furnish information about outstanding balance of Government Guarantee every month, the circular says.
It says during this intervening period all the staff who have availed HBA may shift/transfer their HBA/loan to any other financial institution, if they so desire.
“Deed of Mortgage executed in favor of Government shall be transferred in favor of bank/financial institution. Monthly instalments towards HBA payable to the bank shall continue to be deducted a source from the salary of the concerned government employees and HBA sanctioning authority shall be solely responsible for repayment,” the circular reads.
All the HoDs are directed to bring the revised guidelines instructions to the notice of all the employees under their administrative control that have been sanctioned and availed HBA, the circular says.
