New Delhi, May 26: The government today cut interest rates on house building advances (HBA) by one per cent with effect from April 1, 2003, following revision of bank interest rates. The revised interest rates on HBA to government servants would be applicable for construction/ purchase of houses/flats, an official statement said here.

Advances upto Rs 50,000 would now be charged at five per cent annual interest rate, instead of six per cent. HBA upto Rs 1.5 lakh would now be charged at 6.5 per cent per annum.

Advance upto Rs five lakh would be charged at 8.5 per cent rate instead of 9.5 per cent, while the revised interest rate for advance upto Rs 7.5 lakh would be 9.5 per cent. Bureau Report