If you are a Goa government employee who once took a House Building Advance to construct or purchase your home, the government's decision to withdraw the scheme in 2020 must have altered your plans. In response, the Goa government is willing to extend support to its employees under the House Building Loan Scheme.
Key Benefits of the Scheme
The scheme offers a twofold benefit: a loan takeover facility along with a shared interest payment mechanism. Under this mechanism, the employee bears 2% of the interest plus the principal amount, while the government bears the remainder of the interest up to 5%. The scheme is implemented by the Directorate of Accounts in coordination with empanelled banks notified separately by the government.
Eligibility Criteria
The foremost requirement is that the applicant must be an erstwhile beneficiary of the House Building Advance who had their loans operative as of 15th May 2020. This does not include those who foreclosed their earlier loan upon withdrawal of the previous scheme. You must fulfill the eligibility criteria put forth by the empanelled bank. Those who switched the loan to another bank upon closure of the previous scheme must ensure that the loan account shall now be operated in any of the empanelled banks.
The applicant must approach any of the empanelled banks for takeover of the existing loan for a maximum loan amount restricted to the amount outstanding as of the date after repayment of instalments from May 2020. If you took a top-up loan on top of your original House Building Advance, you are only eligible to apply for a new housing benefit up to the specific amount of the HBA principal you still owe.
Conditions Applicable
- The employee must bear all documentation expenses; the government will not bear any costs for the same.
- For employees who availed benefits under the One Time House Building Advance Settlement scheme, the amount availed under that scheme would be adjusted in the initial instalments itself. The Government will not start contributing its share of interest to this extent. The employee has to bear the full burden of the instalments.
- Failure to repay the housing loan, either by the government employee or the successor, will entitle the bank to enforce the mortgage and take action to recover the outstanding housing loan.
Application Process and Documents Required
There is no app or web portal for this one. Applications are accepted offline only.
- Get the form. Print it from the official scheme page, or simply ask for a hard copy at any empanelled bank.
- Fill it in. Complete every mandatory field and attach self-attested copies of the documents it asks for.
- Submit it at your chosen empanelled bank. The head of department, after verification, will forward the application to the Directorate of Accounts along with the prescribed proforma.
Documents Required
- Copy of sanction order of House Building Advance.
- Loan account statement from bank.
- Letter from empanelled bank to which loan is applied for along with repayment period and equated monthly instalment fixed.
- Documents for transfer of security: Deed of mortgage or any other collateral security executed in favour of the previous scheme (to be transferred in favour of the empanelled bank).
- Undertaking from the employee saying the applicant desires to transfer the same in favour of the bank.
Frequently Asked Questions
What is the maximum duration for which the government will continue to bear its share of the interest?
The Government's share of interest will continue until you attain superannuation or for a maximum duration of 20 years of the total repayment period, whichever occurs earlier.
What happens if I fail to pay my share of the equated monthly instalment for two consecutive months?
If you delay contributing your share for a maximum default duration of two months, you will become ineligible to avail any further benefits, and the government will not bear any additional liability.
What will happen to my outstanding housing loan if I cease to be in government service due to reasons other than retirement or superannuation?
If you cease to be in service for any reason other than normal retirement or superannuation, or if you die before full repayment, the entire outstanding amount will become payable forthwith by you or your successor.
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