Team Herald
PANJIM: In a major relief to around 1,500 government employees, the State government on Monday reintroduced the new and revised House Building Allowance (HBA) Scheme for the beneficiaries of earlier scheme, which was discontinued from May 2020.
Under the earlier HBA Scheme, the beneficiary government employee has to pay only two per cent of the interest rate of their housing loan and the remaining interest is borne by the State government. However, as per the revised scheme, State’s allowance will be restricted to a maximum of five per cent of the interest and anything above that will be charged from the beneficiary plus the principal component share.
As per the notification issued by the Finance Department, the government’s share will continue till the employee attains superannuation or for a maximum duration of 20 years of the total repayment period, whichever is earlier, by considering the already paid installments by the government.
“The employee shall bear two per cent of the interest plus the principal component charged by the empanelled bank, whereas the government shall bear the remainder of the interest, subject to the condition that the government share throughout the duration of the scheme would be restricted to a maximum of five per cent,” the department said.
The State government in May 2020 abruptly discontinued the HBA Scheme, which was in force since 1988, which led to some of the government employees (beneficiaries) to approach the High Court.