However, given that not all employees were able to take advantage, the finance department decided to extend it.
The settlement scheme was introduced over seven months after the government discontinued the housing loan scheme for its employees. It aims at providing assistance to state government employees, as well as staff employed with grant-in-aid institutions, who took a subsidised home loan.
The HBA scheme was formulated in such a manner that as per government procedure, the loan would be recovered with full repayment of the principal amount in the beginning, followed by repayment of the interest component.
However, certain beneficiaries who repaid the entire principal amount had to bear a sudden escalation in the balance interest amount to be paid to the bank due to discontinuation of the HBA scheme, the government formulated OTS scheme.