Payments, Interest Rates, and EMI Calculations.
The Odisha government provides House Building Advance (HBA) to its employees, allowing them to construct or purchase a house. Here’s a breakdown of the guidelines, including the first payment, interest rate, EMI, and salary deductions:

1. *First Payment of 60%:*
The first payment of 60% of the sanctioned loan amount is released initially after the sanction of the loan. This is meant to start the construction or purchase process.
The remaining 40% can be released in subsequent installments as the construction progresses or as per the terms of the loan agreement.

2. *Simple Interest Rate:*
The loan carries a simple interest rate of 8% per annum.
The interest is calculated on the outstanding principal amount.

3. *Loan Tenure and EMI:*
The maximum EMI (Equated Monthly Installment) period is 275 months (approximately 23 years).
The EMI includes both the principal and interest components and is deducted from the employee's salary each month.

4. *Loan Sanction Process:*
The loan is sanctioned by the Head of the Department (HOD) after the employee submits the necessary application and documentation.
The process includes verification of the employee's eligibility, service period, and compliance with the rules.

5. *Example Calculation:*

Let’s assume an employee with 5 years of regular service applies for a house-building advance:

*Loan Amount Sanctioned:* ₹10,00,000
*First Payment (60%):* ₹6,00,000
*Interest Rate:* 8% per annum
*EMI Period:* 275 months

#### Interest Calculation:
If the principal amount for the first year is ₹10,00,000, the interest for the first year would be:
\[
\text{Interest} = \frac{10,00,000 \times 8}{100} = ₹80,000
\]
This interest is spread over the EMI period.

#### EMI Calculation:
The EMI can be calculated using the formula:
\[
EMI = \frac{P \times r \times (1+r)^n}{(1+r)^n - 1}
\]
Where:
\( P \) = Principal loan amount
\( r \) = Monthly interest rate (annual rate divided by 12)
\( n \) = Number of EMIs (275 months)

For simplicity, the EMI calculation can be done using financial tools or loan EMI calculators. Based on the above example, the EMI amount would be deducted from the employee's salary each month, ensuring that the total repayment, including interest, is completed within the stipulated EMI period.

6. *Salary Deduction:*
The EMI amount will be deducted automatically from the employee's salary until the entire loan amount, along with interest, is repaid.
The deduction starts from the month following the disbursement of the first installment.

This is a simplified outline, and the exact figures can vary based on the specific loan amount, tenure, and other factors as per the government's guidelines.

All Odisha government employees' details, including official letters, news, guidelines, school information, employee details, and student information, are covered in this channel.
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