Patna: The Bihar government will soon provide a maximum of Rs 30 lakh as `House Construction Advance` to its over 4 lakh employees, Deputy Chief Minister SK Modi said on Monday.
"We have planned to provide a maximum of Rs 30 lakh as House Construction Advance (HCA) to help government employees and teachers have their own houses," Modi said here.
Along with the new HCA scheme, the previous scheme under which government employees were given a maximum loan of Rs 7.50 lakh would run concurrently, he said.
Modi said that Government employees and teachers in the state capital or at any district headquarters could withdraw the HCA amount from any branch of the Central Bank of India within a fortnight of signing the standard form of the agreement.
"HCA will be sanctioned at base interest rate as fixed by the bank as per Reserve Bank of India guidelines," he added.
"Under the HCA scheme, the state government will be a guarantor to ensure through drawing and disbursal officers that equal monthly instalments as fixed by the bank would be regularly deducted from the employees` salary," Modi said.
A decision to enhance the HCA from Rs 7.50 lakh to Rs 30 lakh was taken in conformity with the recommendations of the Bihar state administrative reforms commission, Modi said, claiming the bank would not even charge processing fees for the loans given under HCA.
The HCA loan would be applicable for buying land, building houses, expansion of existing homes, buying flats or houses and repair of old houses.