DIFFERENT TYPE OF ADVANCES
Different types of advances can be sanctioned to the Railway employee through Consolidated Fund of India & Railway Revenue. Some of the advances are recovered with interest and some of them are recovered without charging interest.
[A]. Advances repayable without charging interest.
1. Advances for proceeding on tour.
2. Advance of Travelling allowance
3. Advances of Pay on transfer.
4. Advances on deputation to abroad.
5. Advances on return to India from deputation.
6. Natural Calamity advance.
7. Festival Advance.
8. Advance for children out fits
9. Advance for law suits.
11. Advance for Cycle.
12. Advance for Warm Clothing.
[B]. Advances repayable with interest on advance.
(a) Advances for purchase of Conveyance.
1. Advance for Motor Car.
2. Advance for Motor Cycle/Scooter/Moped.
(b) Advance for Personal Computer.
(e) House Building advance.
H o u s e B u i l d i n g A d v a n c e / L o a n
Grant of House Building Advance (HBA) is regulated in the terms of rules and regulations laid down from time to time by the Ministry of Urban Development for Central Government employees in general. The instructions apply to railway employees as it is.
1. All permanent Railway employees.
2. All other temporary railway employees than 10 years service.
3. Members of all India Services deputed for services who are on deputation on railways for more than 06 years.
4. When Both husband and wife are railway employees and both are eligible for grant of advance the advance will be admissible to only one of them.
5. When both husband and wife are employee then cost ceiling limit pay of both husband and wife will be taken into account.
6. Suspended railway employees are also eligible for advance on witness of two collateral security.
Conditions are required to be fulfilled :
1. The applicant of his/her spouse/minor child should not already own a house in the Town/Urban area where the house is proposed to be constructed or acquired.
2. Area of Constructed house should not be less than 22 Sq. Metter.
3. The HBA for ready built house/flat is permissible on condition of out right purchase.
4. Employee has to submit a promissory note before taking on advance.
5. The official should not have availed of any loan or advance from other Government sources for the purchase. However if he undertakes to repay the outstanding Loan/Advance with interest in one installment he may allow to apply for advance under HBA.
6. Before advance is sanctioned employee must enter into an agreement and after that the property should be mortgage.
7. In individual cases, the cost ceiling limits may be relaxed up to a maximum of 25% .
Purpose of Advance :
The advance is admissible to the employees for only one of the following purpose. :-
1. Purchasing a plot and constructing a house there on.
2. Construction of a new house on a plot owned by the officials by himself of wife or both.
3. Enlarging living accommodations in an existing house owned by employee himself by both husband and wife.
4. Outright purchase of new ready build house/flat from Housing Boards, Development Authorities and other statutory or semi government bodies and also from private registered builders etc. but not from private individuals.
5. For construction of residential portion only of the building on a plot which is Earmarked as a shop cum residential portion.
6. Repayment of Loan or advance taken from a Government or Non- Government source to construct the house.
7. On purchasing of Flat from Corporative Group of Housing Society it will be paid as follows. :- 20% at the time of purchasing of plot from Housing Society and remaining 80% in the ratio as demanded by the society from time to time.
Quantum of Advance :
1. 34 months basic pay subject to max. of Rs. 7.5 Lakhs or Cost of the House/Flat, which ever is the least for new construction/purchase of new House/Flat.
2. For enlargement of existing house the amount of HBA will b e limited to 34 months basic pay subjected to max. of Rs. 1.80 Lakhs or the cost of enlargement or which ever is less.
3. The amount of advance will be restricted to 80% of the true cost of land and or cost of enlarging living accommodation in the case of construction in rural areas.
Rate of Interest :
The advance carries a simple interest on the House Building Advance.
Sanctioned should stipulate the interest 2.5% over and above the scheduled rates with the stipulation that if condition of amount are fulfilled completely to the satisfaction of the competent authority a rebate of interest to the extent of 2.5% will be allowed.
The rate of interest will be half percent less to be charged from employee who himself or his spouse undergoes sterilization and are receiving special pay
Repaying Capacity :
For the purpose of calculating the eligibility of advances the repaying capacity of the employee is done as follows. :-
Cost ceiling Limit :
Cost ceiling Limit for the purpose of HBA will be 134 times the basic pay of the employee subjected to max 30 Lakhs and min 7.5 Lakhs in case where the 134 times of the basic pay comes to the lower than 7.5 lakhs cost ceiling up to Rs. 7.5 will be permissible.
( RBE No: 07/2009 tdd. 12.01.2009 )
Period of utilizing the Advance :
(a ) In case of Purchase of Land :
The mortgage deed must be submitted within 03 months of purchasing of Land.
( b ) In case of Purchasing of Ready Build House :
The mortgage Deed must be submitted within 03 months of sanctioning of advance.
( c ) In Case of purchase of New Flat/Construct :
The advance sanctioned must be utilized within on months of sanctioning of advance.
Construction & Maintenance of House :
1. The construction of house should be as per approved plan and it should be verified by HOD by inspecting before delivering next installment.
2. The house must be completed within 24 months of First installment.
3. Immediately on completion of construction/Purchase of the house/Flat, the Govt. servant shall insure the house at his cost against damage by fire, flood & lightening till the advance is returned in full.
Repayment of Advance :
The entire amount of advance with interest thereon shall be repaid in full by monthly installment with a period not exceeding 20 years i.e. principal in 180 installment and interest in 60 installments.
(a) In the case of advance for purchase of land and construction of house from the pay of the month following the completion of the house of from the pay of 24 the months after the date on which the advance for the purchase plot was sanctioned which ever is earlier.
(b) In case of purchase of ready built house/flat from the pay of the month following that in which the advance was drawn.
(c) If an employee expires after sanctioning of Advance the recover will be done from his settlement dues.
(d) In the case of suspended railway employee the recovery will be made from the subsistence allowance, if the subsistence allowance is reduced to prolonged suspension, the recovery may be suitably reduced, if necessary by the Head of Department.
(e) Failure to pay the advance for any reason what so ever by the Govt. servant or his successors as the case may be will entitle the Government to enforce the mortgage and take the action to recover the outstanding amount.
(f) After all advance is returned with interest the mortgaged property will be returned to the concerned railway employee.
Competent authority to sanction advance of HBA
1 Non Gaz Staff HOD’s / DRM’s
2 Gazetted Officers (Except HOD’s) Addl. GM
3 HOD’s including SDGM & ADDL GM’s GM’s
4 GM Secretary Railway Board