HBA Interest Rate 2026-27 for Central Government Employees Fixed at 7.10%
Interest Rate on House Building Advance (HBA) for Central Government Employees Fixed at 7.10% for FY 2026-27
The Ministry of Housing & Urban Affairs, Government of India, has issued an Office Memorandum regarding the rate of interest applicable on House Building Advance (HBA) for Central Government employees during the financial year 2026-27.
Download HBA Interest rate 2026-27 in pDF
As per the memorandum dated 13 May 2026, the interest rate on House Building Advance sanctioned to Central Government employees has been fixed at 7.10% per annum.
The revised rate will remain effective from 1st April 2026 to 31st March 2027, or until further orders are issued by the Government.
Official Order Details
The order has been issued in pursuance of the Department of Economic Affairs, Ministry of Finance O.M. No. 5(3)/-B(PD)/2026 dated 09.04.2026.
According to the Office Memorandum:
“The new rate of interest applicable on House Building Advance sanctioned to Central Government Employees for the financial year 2026-27 will be 7.10% from 1st April 2026 to 31st March 2027 or until further orders.”
The order has been issued with the approval of the Competent Authority.
Applicability
The revised HBA interest rate is applicable to:
Central Government employees
Ministries and Departments under Government of India
Eligible employees availing House Building Advance during FY 2026-27
What is House Building Advance (HBA)?
House Building Advance is a loan facility provided by the Government to eligible Central Government employees for purposes such as:
Construction of a new house
Purchase of a ready-built house or flat
Purchase of land and construction
Renovation or expansion of an existing house
The advance is generally provided at concessional interest rates compared to market housing loans.
Issuing Authority
The Office Memorandum has been issued by:
The memorandum has been signed digitally by Manoj Kumar Jha, Under Secretary to the Government of India.
The continuation of the 7.10% interest rate for House Building Advance will provide relief and financial support to Central Government employees planning to construct or purchase houses during the current financial year.