G.O. (Ms.) No. 26, Migration of Home Loans to House Building Advance, 2021
The Housing and Urban Development (House Building Advance) Department issued G.O. (Ms.) No. 26 dated 2 February 2021, allowing eligible serving government employees to migrate qualifying home loans from banks or other financial institutions to the government House Building Advance scheme. It amends Rule 3 of the State Rules to Regulate the Grant of Advances to Government Servants for Building Etc., of Houses and sets conditions for sanction, payment and proof of use.
What the government order does
The Housing and Urban Development (House Building Advance) Department issued G.O. (Ms.) No. 26 dated 2 February 2021. It allows existing government employees who already have home loans from banks or other financial institutions to obtain a government House Building Advance to repay those loans, subject to eligibility and specified conditions. It also adds this purpose to Rule 3 of the State Rules to Regulate the Grant of Advances to Government Servants for Building Etc., of Houses.
Who is affected
G.O. (Ms.) No. 26 applies to existing government employees who borrowed from a bank or another financial institution for the construction or purchase of a new house or flat.
The employee may qualify even if they did not apply for a House Building Advance before taking the original loan. However, they must have been eligible for the government advance under the applicable rules on the date when the bank or financial institution loan was obtained.
The document does not create a general benefit for private property buyers who are not eligible government employees.
Conditions for migration
Before granting a House Building Advance for repayment of an existing home loan, the Head of the Department or sanctioning authority must:
- Confirm that the original loan was used entirely for constructing or purchasing a new house or flat.
- Limit the government advance to the outstanding amount that the employee still has to repay.
- Confirm that the employee satisfies the other provisions of the applicable House Building Advance rules.
Payment and documentation
G.O. (Ms.) No. 26 provides that:
- The House Building Advance may be used to repay a bank loan taken for constructing or purchasing a new house or flat.
- The repayment advance must be released to an eligible employee in one lump sum.
- The employee must provide a House Building Advance Utilization Certificate within one month from the date the advance is released.
- All other conditions and orders already in force for sanctioning a House Building Advance continue to apply.
The order records that it was issued with the concurrence of the Finance Department.
This summary is generated from the source document to help you find what is relevant. The PDF above is authoritative. For advice on your own property, use LandLens One or speak to a qualified professional.
Common questions
Can a Tamil Nadu government employee transfer an existing bank home loan to the House Building Advance scheme?
Yes. G.O. (Ms.) No. 26 permits eligible existing government employees to use a House Building Advance to repay a qualifying home loan from a bank or other financial institution.
Does the employee need to have applied for House Building Advance before taking the bank loan?
No. The employee may qualify even without an earlier application, but must have been eligible under the applicable rules on the date the bank or financial institution loan was obtained.
Can the government advance exceed the outstanding home loan amount?
No. The Head of the Department or sanctioning authority must limit the House Building Advance to the amount still due for repayment.
What proof must be submitted after the advance is released?
The employee must submit a House Building Advance Utilization Certificate within one month from the date of release.
