House Building Advance sanctioned to Kerala Government Employees from 2009-10 onwards
GOVERNMENT OF KERALA
Abstract
House Building Advance sanctioned to State Government Employees from 2009-10 onwards – Transfer of Principal portion of Housing Loan Portfolio to Punjab National Bank and Federal Bank Ltd – Orders issued.
FINANCE (House Building Advance) DEPARTMENT
G.O.(P)No.150/2018/Fin Dated, Thiruvananthapuram 25/09/2018
Ref: Circular No.82/2018/Fin dated 04/09/2018.
ORDER
It has been agreed in principle to transfer the principal portion of the outstanding amount of House Building Advance granted to State Government Employees, to Federal Bank Ltd and Punjab National Bank. The Federal Bank Ltd and Punjab National Bank have signed a Memorandum of Understanding with Government of Kerala for the purpose.
Vide circular cited above, Government had issued instructions for verification of KYC by Punjab National Bank and Federal Bank Ltd for employees who had availed House Building Advance from Government of Kerala. The Housing Loan portfolio sanctioned to State Government Employees from 2009-10 onwards has accordingly, been segregated equally between Punjab National Bank and Federal Bank Ltd.
Government have examined the matter in detail and are pleased to order transfer of Principal portion of housing loan portfolio sanctioned to State Government Employees amounting to Rs.369,21,70,313/-to Federal Bank Ltd with 6962 accounts and Rs.376,54,55,290/- with 6963 accounts to Punjab National Bank at an interest rate of 8.45% with one year reset. The amount would be credited by the banks to the account of Government of Kerala; which in turn has agreed to service the interest due on the amount on a monthly basis to the two banks as per their respective monthly invoices.
It is clarified that the amount of monthly deductions from State Government Employees would remain unchanged and there would be no additional interest burden on any employee who would continue to service EMIs in the State House Building Advance Scheme as per the already agreed terms and conditions with Government of Kerala. Government would service the interest due on the amount availed as above to the respective banks by making additional provision over and above the amount recovered from employees by way of their usual EMI payments under the House Building Advance Scheme.
(By order of the Governor)
Sanjeev Kaushik IAS
Principal Secretary (Finance Resources)
