Question : REDUCTION IN RATE OF INTEREST FOR HOUSE BUILDING ADVANCE

(a) whether it has been decided to reduce the rate of interest for House Building Advance by one per cent;

(b) if so, the complete details in this regard;

(c) the specific reasons which led to this decision as also rationale behind its present effective date of implementation;

(d) whether the Government would consider to apply the new rates of interest to the House Building Advances already availed by lakhs of Government employees across the country during the last few years and particularly after the inception of the present Government;

(e) the response of the Government thereto in view of the strong and significantly larger impact bearing of this benign decision of the Government on their own employees; and

(f) if not, the reasons therefor?

MINISTER OF STATE FOR URBAN DEVELOPMENT & POVERTY ALLEVIATION ( SHRI BANDARU DATTATREYA )

(a)&(b): Interest chargeable on House Building Advance to Central Government employees has been reduced by 1% for all slabs with effect from 1.4.2001. The revised rates of interest are indicated below:-

S.No.	Amount of Advance	Revised rate of Interest	sanctioned to a Govt.	on HBA (per Annum)	servant
1. Upto Rs.50000/-	6.5%

2. Upto Rs.1,50,000/-	8%

3. Upto Rs.5,00,000/-	10%

4. Upto Rs.7,50,000/-	11%