Loan Account - Guidelines

As per Executive Instrunctions under  Rule 13 of HBA Rules, the property mortgaged to Government shall be reconveyed to the government employee concerned(or his successors in interest as the case may be) after the advance together with the interest has been repaid to Government in full, subject to the certificationby the Accountant General.

 While forwarding the proposals for ssuang of Clearance Certificate, the following particulars may be furnished.

  1. Sanction Order No. & Date.
  2. Amount Sanctioned installment wise
  3. Period of repayment
  4. Number of installments
  5. Rate of installments
  6. Head of Account.

 

As per Rule 11 of HBA Rules,  Penal interest @ 1.5 times the normal rate shall be levied in the following types of Cases.

  1. Delay in completing various formalities prescribed under the rules, such as execution of mortgage deed, insurance of property and renewal of insurance policy.
  2. On overdue monthly installments.
  3. Penal interest should be calculated from the date of drawal of advance to the date of completion of formalities in the case of delay, default or misuse.

 

As per Rule 9 of HBA Rules, recovery of loan shall commence as follows:

 

S.No.

Purpose

Month of commencement of recovery

1

Advance for Purchase of site-cum-construction/construction of a house/flat

From the nineteenth month of the drawal of the first installment of advance

2.

Advance for Purchase of a ready build house/flat

From the fourth month following the month of drawal of the advance

3.

Advance for repairs etc. to the house/flat

From the sixth month following the month of drawal of the advance

4.

Advance for Purchase of only house site.

From the third month following the month of drawal of the advance

 

 

 

As per Rule 10 of HBA Rules, the rate of interest fixed by Government from time to time and current at the time of granting the loans will be applicable to the advances made in accordance with these rules.

Rate of interest fixed by Government :-

For advances sanctioned prior to 1/04/2010:

  1. In case of repairs  - 8.5% p.a
  2. In case of advances for other than repairs etc.
  1. For last grade employees  -  7.5% p.a
  2. For others                             -   8.5%p.a

For advances sanctioned with effect from 1/04/2010(G.O.MS.37/Dt.10/4/2015):

(a) In case of repairs  - 5.5% p.a

(b )In case of advances for other than repairs etc.

  1. For last grade employees  -  5.5% p.a
  2. For others                             -  5.0%p.a

Head of accounts for crediting the recoveries:

principal amount – 7610-00-201-05-001

 interest amount – 0049-04-800-01-001