Eligibility

House Building Advance may be granted to the following categories of employees of the Akademi:

1. All permanent employees.
   
2. Employees not falling under above mentioned category but who have rendered at least ten years' continuous service. Provided that
   
   1. The Secretary is satisfied about their likely retention in service till the house for which the advance is sanctioned is built and mortgaged to the Akademi; and
   2. They do not hold a permanent appointment under any other organisation/ government.
3. Permanent employees who have gone on deputation to other organisations/ government and continue to hold lien in the Akademi; and
   
4. Employees under suspension, subject to production of collateral security in the shape of mortgage bond from two permanent employees of the Akademi.

Notes:-

1. When both the husband and wife are employees of the Akademi, the advance shall be admissible to only one of them.
   
2. In case of an employee referred to in clause (b), surety of a permanent employee of the Akademi should be produced.
   
3. An advance may be permissible if the land/house/flat is owned jointly by his/her wife/husband subject to the condition that both husband and wife are willing to mortgage the house/flat including land in favour of the Akademi as security for repayment and a letter of assurance to this effect from both of them is attached with the application.
   
4. The Secretary may reject or may keep pending any application without assigning reasons.
   
5. Payment of advance/any instalment of advance shall be subject to the availability of funds with the Akademi.
   

Purposes for which an Advance may be granted

1. Construction of a new house on the land owned by the employee;
   
2. Enlargement of or additions and alterations to existing house owned by the applicant either in his own name or jointly with the applicant's wife/husband;
   
3. Purchase of ready-built house/flat from registered cooperative societies and Government or semi-Government agencies like the DDA, State Housing Boards, etc; and
   
4. Purchase of house/flat from private parties subject to fulfillment of following conditions:
   1. the house/flat to be purchased should be new and un-lived in; and
   2. the house/flat is valued by registered valuers and valuation fee paid by the applicant himself; and
5. purchase of land and construction of a new house. Note: The house/flat can be either at the place of duty or at the place where applicant proposes to settle after retirement.

Conditions to be Fulfilled

1. The applicant should not own Fulfilled any house either in his name, his/her wife's husband's name or in the name of his/ her minor child in a town or city, unless the advance is required for enlargement of, or additions and alterations to an existing house. Exceptions may be made by the Secretary in suitable cases such as the following:
   a. The house is in a village, town or city and the applicant wants to settle in any other town or city, or
   b. The house is owned jointly and the applicant wants to build a separate house for himself/herself.
   
2. The maximum amount of advance shall be as follows:

Purpose	Cost	Pay	Maximum
Construction of a house including or excluding plot	100%	50 times	Rs. 7,50,000
Purchase of ready built house or flat/purchase of a ready built house or flat where the land on which it has been built cannot be mortgaged	100%	50 times	Rs. 7,50,000
Construction of a house in a rural area	80%	50 times	Rs. 7,50,000
Enlarging existing living accommodation	100%	50 times	1,80,000
Enlarging existing living accommodation in a rural area	80%	50 times	1,80,000



3. The actual amount of advance will be determined on the basis of data/documents/plans with specifications and estimates to be furnished by the applicant to the satisfaction of the Secretary.
   
4. In case the house is situated in a rural area, a certificate of area and value from a
5. Revenue Officer not below the rank of a Tehsildar should be furnished.
   
6. Only one advance shall be admissible during the entire service of the applicant.
   
7. If the land cannot be mortgaged to the Akademi, a collateral security shall be furnished by the applicant before the advance is sanctioned.
   
8. The land should have been approved by the competent local authority for use for residential purposes.

Repayment

1. Notwithstanding anything in rule(4), the admissible amount of loan shall be so determined that it is fully repaid alongwith interest by monthly instalment within a period not exceeding 20 years. Firstly, the recovery of the advance shall be made in not more than 180 monthly instalments and then interest shall be recovered in not more than 60 monthly instalments,
   
2. While calculating the number of instalments of repayment, the following guide-lines should be followed:
   It should be ensured that the amount of each monthly instalment does not exceed.
   
   1. in the case of employee retiring after 20 years, 35% of pay;
   2. in the case of employee retiring after 10 years but not later than 20 years, 40% of pay (65% of DCR gratuity may also be adjusted), and
   3. in case of employee retiring within 10 years, 50% of pay (DCR gratuity up to 75% may be adjusted).
3. Each instalment shall be fixed in whole rupees.

Security for the Advance

1. The house/flat including land should be mortgaged to the Secretary as security for repayment of the advance.
   
2. The prescribed agreement should be executed.
   
3. The stamp duty and registration charges payable if any will be borne by the employee.
   
4. The land/house/flat should be free from attachments and encumbrances and the applicant should have a clear and marketable title to it.
   
5. In case of purchase of land/flat/house from a Registered Co-operative Society, Government/ Semi-Government bodies such as State Housing Board or Development Authority, etc. a copy of resolution passed by the general body or a no-objection certificate by the authorised officer of the effect that the applicant can mortgage the land/house/flat to the Secretary should be produced.
   
6. The applicant should obtain complete possession of the land/house/flat which he has to mortgage as security to the Secretary.

The Secretary may also sanction an advance for construction if he is satisfied that:

1. The employee has paid full costs of the land to the Society or Government or Semi-Government Organisation;
   
2. The title to the land in favour of the Society or organisation concerned is clear;
   
3. The terms of the sale of the plot to the employee clearly specify the conditions that should be fulfilled before the employee can obtain the title;
   
4. The Society or organisation gives possession of the plot of land to the employee to enable him to construct his house; and
   
5. The employee shall be in a position to obtain a clear title to the property from the Society or organisation within a reasonable period and mortgage it in favour of the Secretary.

Notes : A letter from the authorised officer of the Society or Organisation specifying the position referred to in (a) to (e) above may also accompany the application.