Government of West Bengal
No. 1196(300)-F.B. dated 10.06.2011
Sub: Housing Loan Scheme for the employees of the Government of West Bengal in association with the United Bank of India & West Bengal State Co-operative Bank Ltd.
Government of West Bengal, with a view to offering encouragement to Government servants to construct/ purchase their own residential houses/ flats, used to disburse loans to Government employees. Sanctions of loans were governed by rules 308 to 312 of West Bengal Financial Rules Vol – I. and also on the basis of executive orders issued from time to time. In the year 1999, Finance Department issued a Government order 1300-FB dt. 31.05.1999 Government employee was also eligible to avail himself of House Building loans from Nationalised banks/ Government Financial Institutions in addition to house building loans obtained from Government. In those cases, the only condition was imposed that the Government employee will have to execute a bond mortgaging his property as “First Charge” in favour of the State Government.
Later on, the State Government decided to discontinue the system of sanctioning house building advance to its employees vide G.O. No. 214-FB dt. 28.01.2003. The State Government employees were allowed to obtain such loan from any bank or Financial Institution through the same G.O. So, it is evident that the State Government allowed its employees to obtain housing loan from Nationalised banks or Government Financial Institutions. At that time Government decided for tie up arrangement with banks/ financial Institutions so that hassles free loans at competitive rates are available to the State Government employees.
At present State Government employees are entitled to get house building loan from United Bank of India and West Bengal State Co-operative Bank Ltd. vide this department Memo No. 1456-FB dated 08.11.2006 and Memo No. 1847-FB dated 16.01.2007 respectively.
With the issue of these orders some questions were raised whether a Government employee who was sanctioned ‘House Building Advance’ from Government prior to issue of Government order 214-FB dated 28.01.2003 would be eligible for further loan from banks under tie-up scheme. (i.e. U.B.I. and W.B.S.C.B.L.).
After careful consideration of the matter, the Governor has been pleased to direct that the Government employees will be eligible for Housing loan Scheme of Banks that have tieup arrangements with the Government of West Bengal, only for addition/ alteration/ repair of the building on the same premises in respect which House Building loan from Government was previously sanctioned. The Government employees who have obtained HB Loan from the Government may be permitted to create a second charge on the property provided they obtain prior permission of the Head of the Department.