Lucknow: In a major relief for state government employees, the Uttar Pradesh Cabinet has approved a significant hike in the advance amount for housing construction and repairs, along with a reduction in the interest rate. State employees can now avail housing construction loans up to Rs 25 lakh and repair loans up to Rs 10 lakh, with the interest rate reduced from 9% to 7.5%.
Housing Loan Advance Increased Substantially
Earlier, the maximum advance for building construction was Rs 7.5 lakh, while for repairs it was Rs 1.80 lakh. The new decision, approved by the cabinet on Tuesday, now allows employees – including All India Service officers posted in UP – to avail advances up to 34 months of their basic salary, capped at Rs 25 lakh for construction and Rs 10 lakh for repairs.
Interest Rate Cut Benefits Employees
The interest rate has been fixed at 7.5%, down from the previous 9%. Previously, employees who paid installments on time received a 2.5% discount, effectively lowering their interest rate. The new flat rate removes the discount system, simplifying loan repayments for the employees.
Equalizing Benefits with Central Government Employees
With this move, Uttar Pradesh state employees will now enjoy housing loan facilities comparable to those available to central government employees. This step is seen as a major employee welfare measure by the state government.
Appreciation from Employee Associations
Arjun Dev Bharti, President of the Uttar Pradesh Secretariat Association, expressed gratitude towards Chief Minister Yogi Adityanath and Additional Chief Secretary (Finance) Deepak Kumar for approving this proposal, highlighting the positive impact it will have on state employees’ housing needs.
