Khyber Pakhtunkhwa’s Interest-Free Loan Scheme 2024-25: Empowering Provincial Employees with Financial Relief

KPK Government Launches Interest-Free Loan Program 2024-25 for Employees: Apply Now for House, Car, and Cycle Advances:

The Government of Khyber Pakhtunkhwa has announced the Interest-Free Loan Scheme for the year 2024-25 for its provincial government employees. Under this scheme, employees can apply for loans in various categories such as House Building Advance (HBA), Motorcar Advance (MCA), Motorcycle Advance, and Cycle Advance. This is a great opportunity for the provincial employees to avail financial assistance without the burden of paying any interest.

Overview of the Loan Scheme:

The scheme offers interest-free loans for the following categories:

1. House Building Advance (HBA)
2. Motorcar Advance (MCA)
3. Motorcycle Advance
4. Cycle Advance

These loans will be disbursed through a balloting system, ensuring transparency in the process. The loans are repayable through monthly installments over a specific tenure, with no additional interest charged on the amount.

Eligibility Criteria:

All provincial government employees who meet the following conditions are eligible to apply for the loan:

1. Years of Service: Applicants must have at least 5 years of service to be eligible for any of the loans, except for the Cycle Advance, which has no service requirement.
2. Age Limit: The age limit varies depending on the type of loan. For the House Building Advance, the maximum age is 50 years, while for Motorcar and Motorcycle Advances, it is 55 years.
3. Non-Payment Certificate: The Drawing and Disbursing Officer (DDO) must certify that the applicant does not have any outstanding loan payments.

Loan Categories and Repayment Details:

Here are the details of each loan category:

Loan Type	Eligibility	Loan Limit	Monthly Installment	Repayment Tenure	Conditions
Car Advance	BS-17 and above	Rs 200,000	Rs 3,334/-	60 months	Min. 5 years of service, max. age 55 years
House Building Advance	BS-1 to BS-17	Rs 250,000	Rs 2,084/-	120 months	Min. 5 years of service, max. age 50 years
Motorcycle Advance	BS-1 to BS-17	Rs 80,000	Rs 1,334/-	60 months	Min. 5 years of service, max. age 55 years
Cycle Advance	BS-1 to BS-17	Rs 8,000	Rs 200/-	40 months	No specific conditions

Important Terms and Conditions:

Deadline: The last date to apply for this loan is 10th December 2024. Employees are encouraged to submit their applications well in advance to avoid missing the deadline.

Single Loan Application: Employees can only apply for one loan category. They are not allowed to apply for multiple loans (e.g., both House Building and Motorcar Advance).

DDO Certification: The Drawing and Disbursing Officer (DDO) must verify that the employee does not have any outstanding loan payments. The DDO Non-Payment Certificate must be attached to the loan application.

Benevolent Fund Board Submission: Applications must be submitted through proper channels, and hand-delivered applications will not be accepted by the Provincial Benevolent Fund Board.