Government Letter (Ms.) No.73 dated 11.03.2021

What the letter does

The Housing and Urban Development Department issued Government Letter (Ms.) No.73 dated 11 March 2021 to provide further instructions for migration of eligible government employees' home loans from banks or other financial institutions to the government House Building Advance scheme. It includes a prescribed application form, an office scrutiny checklist and a list of supporting documents.

The guidance follows Government Order (Ms.) No.24 dated 2 February 2021, which increased House Building Advance ceilings, and Government Order (Ms.) No.26 dated 2 February 2021, which allowed existing employees to migrate qualifying home loans.

Who is affected

Government Letter (Ms.) No.73 dated 11 March 2021 applies to existing government employees who borrowed from a bank or another financial institution to construct or purchase a new house or flat and now seek a House Building Advance to repay that loan. Sanctioning authorities, Heads of Office and lending institutions must complete or verify parts of the process.

Main conditions

Government Letter (Ms.) No.73 dated 11 March 2021 requires the sanctioning authority to confirm that:

• The original home loan was used entirely to construct or purchase a new house or flat.
• The House Building Advance does not exceed the amount still outstanding to the lender.
• The employee was eligible under the applicable rules when the bank or financial institution loan was obtained.
• The employee satisfies the other provisions governing House Building Advances.
• The lender has no objection to migration.

The migration amount is released in one lump sum. The employee must provide a House Building Advance Utilization Certificate within one month from the release date.

Application and document checks

Government Letter (Ms.) No.73 dated 11 March 2021 directs applicants to use the annexed form and requires offices to complete the checklist before sanction. Information requested includes the property's location, plot or flat area, local authority, title, building age and value, original loan amount, outstanding balance and any loan default.

Supporting records listed include:

• Self-attested sale deed and parent documents.
• Latest encumbrance certificate.
• Opinion of the Government Pleader.
• Approved plan.
• Structural engineer's certificate.
• No objection certificate from the lender.
• Lender's letter stating the outstanding amount.

Where an employee has already received a House Building Advance, migration is allowed only when the additional bank or financial institution loan relates to the same house and covered the difference between the house cost and the earlier advance.