Interest Rate on House Building Advance to Railway Employees from 1.4.2026 to 31.3.2027

रेलवे कर्मचारियों के लिए घर बनाने के लिए मिलने वाले एडवांस पर ब्याज दर (01.04.2026 से 31.03.2027 तक): RBE सर्कुलर नंबर 57/2026, तारीख 13.05.2026

Interest Rate on House Building Advance to Railway Employees from 01.04.2026 to 31.03.2027: The Ministry of Railways (Railway Board) has issued RBE Circular No. 57/2026 dated 13 May 2026, notifying the revised interest rate on House Building Advance (HBA) for Railway employees for the financial year 2026-27. The Railway Board has adopted the rate announced by the Ministry of Housing and Urban Affairs (MoHUA), Government of India.

As per the order, the interest rate on House Building Advance (HBA) has been fixed at 7.10% per annum. The revised rate will be applicable for advances sanctioned during the period from 1 April 2026 to 31 March 2027, or until further orders are issued by the Government.

Highlights of RBE Circular No. 57/2026

Railway Board Circular: RBE No. 57/2026
Date of Issue: 13 May 2026
Subject: Interest Rate on House Building Advance (HBA)
Applicable To: Railway Employees
Interest Rate: 7.10% per annum
Effective From: 1 April 2026
Applicable Up To: 31 March 2027
Status: Effective until further orders

What is House Building Advance (HBA)?

House Building Advance (HBA) is a government loan facility extended to eligible Central Government and Railway employees for housing-related purposes. The advance is provided at a concessional rate of interest and can generally be utilized for:

Construction of a new residential house.
Purchase of a ready-built house or flat.
Purchase of land followed by construction of a house.
Expansion or addition to an existing house.
Repayment of housing loans in eligible cases as per Government rules.

The HBA scheme enables employees to own a house at a comparatively lower borrowing cost than many commercial housing loans.

Interest Rate for FY 2026-27

The Ministry of Housing and Urban Affairs has fixed the House Building Advance interest rate at 7.10% per annum for the financial year 2026-27. This rate has been adopted by the Railway Board through RBE Circular No. 57/2026 and will apply to all eligible Railway employees whose House Building Advance is sanctioned during the prescribed period.

Particulars	Details
Interest Rate	7.10% per annum
Effective Date	01 April 2026
Validity	31 March 2027 or until further orders
Circular Number	RBE No. 57/2026
Date of Circular	13 May 2026

Background of the Order

The Railway Board order is based on the Office Memorandum issued by the Ministry of Housing and Urban Affairs dated 13 May 2026. The memorandum, issued in pursuance of the Department of Economic Affairs, Ministry of Finance O.M. dated 09 April 2026, revised the HBA interest rate for all Central Government employees for the financial year 2026-27. The same rate has now been made applicable to Railway employees through RBE No. 57/2026.

Who Can Benefit?

The revised HBA interest rate will benefit eligible Railway employees who apply for and obtain sanction of House Building Advance during the financial year 2026-27. Employees planning to:

Construct a new house,
Purchase a residential flat,
Purchase a ready-built house,
Expand or renovate an existing residential property,

may avail the advance at the notified interest rate, subject to eligibility conditions and Railway Board guidelines.

Important Points

The interest rate remains 7.10% per annum.
The rate applies only to advances sanctioned during FY 2026-27.
The validity period is from 01.04.2026 to 31.03.2027.
The circular is applicable to eligible Railway employees.
All other terms and conditions governing House Building Advance remain unchanged unless specifically modified.

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