In an order, the Railway Board said the interest rate will apply to House Building Advances sanctioned between April 1, 2026, and March 31, 2027.
The order adopts the Ministry of Housing and Urban Affairs’ Office Memorandum dated May 13, 2026, on the subject and makes it applicable, mutatis mutandis, to railway employees.
House Building Advance is a concessional loan facility provided by the government to eligible employees to help them meet housing needs. The loan can be availed for purposes such as constructing a new house, purchasing a ready-built house or flat, buying a plot and constructing a house on it within the prescribed time, purchasing a house under various government or housing agency schemes, or carrying out additions and alterations to an existing house, subject to the scheme’s rules.
The scheme is available only to eligible employees and is governed by conditions relating to service, repayment, maximum loan amount, and the purpose for which the advance is sought.
The amount that can be sanctioned depends on the applicable government rules, including the employee’s entitlement and the cost of the property.
The latest Railway Board order does not change the eligibility criteria or other terms of the House Building Advance scheme. It only notifies the applicable interest rate for advances sanctioned during FY2026-27.
