Issued By:
Government of Khyber Pakhtunkhwa
Interest-Free Loan Application Form Description and Terms:
We are pleased to offer an interest-free loan facility for government employees, designed to provide financial assistance for various personal and professional needs. The loan application form is available for download, and employees can apply for loans under different categories, such as Bicycle Advance, Motorcycle Advance, House Building Advance, and Motorcar Advance. These loans are provided on easy installment terms, with no interest charged, offering a practical solution for managing finances.
Below, we provide an overview of the application process and detailed terms and conditions to help you understand the eligibility criteria, loan amounts, repayment schedules, and other essential details.
Loan Categories and Repayment Terms:
The loan scheme is divided into four main categories, each with different eligibility criteria and repayment plans. Here are the details:
- Bicycle Advance
- Loan Amount: Rs. 8,000/-
- Installment Plan: Rs. 200/- per month in 40 equal installments
- Eligibility: No specific criteria
- Motorcycle Advance
- Loan Amount: Rs. 80,000/-
- Installment Plan: Rs. 1,334/- per month in 60 equal installments
- Eligibility: Minimum service of 5 years, maximum age of 55 years
- House Building Advance
- Loan Amount: Rs. 250,000/-
- Installment Plan: Rs. 2,084/- per month in 120 equal installments
- Eligibility: Minimum service of 10 years, maximum age of 50 years
- Motorcar Advance
- Loan Amount: Rs. 200,000/-
- Installment Plan: Rs. 3,334/- per month in 60 equal installments
- Eligibility: Minimum service of 5 years, maximum age of 55 years
Terms and Conditions:
The following terms and conditions govern the Interest-Free Loan Scheme:
Rule 253-A-2(vi) of the General Financial Rules (GFR) will be considered relaxed for the purposes of this scheme.
Repayment and Default:
The installments for all loan categories must be paid without any break.
In case of default, an interest equivalent to the GP Fund rate will be charged.
Eligibility Restrictions:
There will be no special consideration, quota, or preference for any applicant. All previously prepared lists will be considered canceled.
Deputationists are not eligible to apply for the loan scheme.
The loan can only be availed under one category at a time. However, once the loan period ends and all installments are paid, employees may apply for another loan.
The loan is only available to government employees who are not already benefiting from a similar loan facility, as certified by their Drawing and Disbursing Officer (DDO).
Conditions for Service Termination:
Employees benefiting from this scheme cannot be relieved from service due to resignation, early retirement, termination, etc., unless all outstanding loan installments are recovered.
Death of the Borrower:
In the unfortunate event of the borrower’s death while in service, the remaining loan installments will be waived in consultation with the Finance Department.
Application Scrutiny Process:
The application forms for employees of the Civil Secretariat and its attached departments will be enlisted and scrutinized by the Benevolent Fund Section of the Administration Department, Civil Secretariat Peshawar, using the Data Entry Software Program (DESP).
Provincial Government employees working in districts will have their applications enlisted by the respective Deputy Commissioners.
The deadline for submitting loan applications for the current financial year is December 10, 2024.
Loan Approval Process:
Once the applications are scrutinized, a draw will be held by a committee to select the successful applicants. The funds will then be released by the Accountant General Khyber Pakhtunkhwa to the relevant departments for disbursement.
Record Maintenance:
The deduction of installments and record maintenance will be managed by the District Accounts Officers, Tribal District Accounts Officers, and Accountant General Khyber Pakhtunkhwa.
GFR Relaxation:
Rule 253-A-2(vi) of the General Financial Rules (GFR) will be considered relaxed for the purposes of this scheme.