Interest Free Loan (Out of Finance Department)
The Interest Free Loan Scheme was launched by the Government of Khyber Pakhtunkhwa initially for the Provincial Government Employees serving in BS-01 to BS-15, however, from F.Y. 2019-20 employees serving in BS-16 & above are also entitled for the scheme. Finance Department annually allocates budget for the purpose, while execution of the scheme is handed over to Provincial Benevolent Fund Cell.

The Terms and Conditions and quantum of loan for the Interest Free Loan Scheme are as under: -

  1. The Interest Free Loan Scheme will be granted to Provincial Government employees according to following criteria: -

Category Loan
Admissible 		Mode of
Installments 		Eligibility
Bicycle
Advance		 Rs.8,000/- Rs.200/- P.M. BS-01 to BS-17
Motorcycle
Advance		 Rs.80,000/- Rs.1,340/- P.M.

In 60 equal installments. (No permission for extension in the period of return else profit on the loan will be imposed at the profit rate of GP Fund of that year.)		 BS-01 to BS-17 with 5 Years Minimum Service and 5 Years Remaining Service (i.e. Max Age 55).

House
Building
Advance 		Rs.2,50,000/- Rs.2080/- P.M.

In 120 equal installments.
(No permission for extension in the period of return else profit on the loan will be imposed at the profit rate of GP Fund of that year.)		 BS-01 to BS-17 with 10 Years Minimum Service and 10 Years Remaining Service (i.e. Max Age 50).

Motorcar Advance Rs.2,00,000/- Rs.3334/- P.M.

In 60 equal installments.
(No permission for extension in the period of return else profit on the loan will be imposed at the profit rate of GP Fund of that year.)		 BS-17 & Above with 5 Years Minimum Service and 5 Years Remaining Service (i.e. Max Age 55).

  1. There will be no quota or special consideration etc. in any case and all such list prepared for the purpose in the past will be deemed cancelled.

  2. Duputationists will not be eligible for the grant of Interest Free Loan Scheme.

  3. Loan will be admissible only in one of the categories mentioned in (i) above. However, after the expiry of the period and return of all the installments another loan can be granted.

  4. Loan will be granted only to those Government employees who are not availing the loan facility from Benevolent Fund, bank, any other financial institution or any other source. Certificate to the effect, duly signed by concerned DDO, may be attached.

  5. Any employee availing the facility of Interest Free Loan Scheme will only be relieved from services, in case of resignation, pre-mature retirement, termination etc.) after the recovery of all the dues.

  6. In case of death during service of the loanee, Government employees the remaining installments shall be waived off in consultation with Finance Department.

  7. Benevolent Fund Cell, Administration Department will invite the applications through circular letter addressed to all Administrative Secretaries in Khyber Pakhtunkhwa, Attached Departments, District Coordination Officers / Political Agents and through wide publicity through press and Radio.

  8. The application forms of Civil Secretariat employees and its Attached Departments shall be enlisted / scrutinized by Benevolent Fund Section, Administration Department, Civil Secretariat Peshawar (on Data Entry Software Program) while application of the employees working in District Government / Agencies shall be enlisted / scrutinized by the District Coordination Officers / Political Agents concerned (on Data Entry Software Program). The Data Entry Software Program could also be obtained from our website or on demand from Provincial Benevolent Fund Cell.

  9. After scrutinization of all such applications the date for the submission of applications to Provincial Benevolent Fund Cell, for each financial year, will be as under:-

    10. Civil Secretariat 31st October Each Year
    Attached Departments of Civil Secretariat 31st October Each Year
    District Government Departments through
    concerned District Coordination Officers    		 16th October Each Year

  10. After scrutinization draw shall be arranged by a committee.

  11. The process of invitation, enlistment and scrutinization etc. will be completed before the 31st October each year and loan data (final lists), in software program mentioned at (ix) will be submitted to Provincial Benevolent Fund Cell by 31st October each year. Loan will be sanctioned after the approval of Competent Authority i.e. Chief Secretary Khyber Pakhtunkhwa.

  12. Review on the schedule for current financial year will be done after the approval of Chief Secretary Khyber Pakhtunkhwa.

  13. After sanction of loan grant, Accountant General Khyber Pakhtunkhwa will release the funds to concerned Administrative Departments, Attached Departments and concerned DDOs for onward release to Government employees.

  14. Deduction of installments and maintenance of record will be the responsibility of concerned District Accounts Officers / Tribal District Accounts Officers and Accountant General Khyber Pakhtunkhwa.

  15. Rules 253-A-2(vi) of GFR will be considered relaxed at present

Applications for the grant of Interest Free Loan, from the eligible Government Servants, fulfilling the Terms and Conditions, are invited for the grant of Loan through their respective Departments on the prescribed application form along with Surety Bond on Stamp Paper.

Applications of the Government employees serving in Civil Secretariat and its Attached required to be submitted to Benevolent Fund Section Administration Department. The applications received will be scrutinized by the Benevolent Fund Section Administration Department and the Benevolent Fund Section Administration Department will provide final list of loan applicants and original application forms, fulfilling all the requirements, to Benevolent Fund Cell.

Applications of the employees serving in District Government / Agencies are required to be submitted to the District Coordination Officers / Political Agents concerned. The applications at District level will be scrutinized by a committee constituted by the District Coordination Officers / Political Agents concerned and the District Coordination Officers / Political Agents concerned will provide final list of such applicants and original application forms, fulfilling all the requirements, to Benevolent Fund Cell.

A joint list of all the applicants will be maintained and thereafter a final selection for each category of loan will be decided through open draw, provided in case the total number of applications exceed the prescribed limit in each category

Note : - Responsibility for delay in the submission of list would total rests on the shoulders of Departments concerned as it would result in the deprivation of eligible Government servants of their legitimate right of availing interest free loan which is being extended by the Provincial Government as a welfare measures.

Form is available from Download Section of the site.

Click here to downlaod Lists of Winners of Interest Free Loan Scheme 2023-24.

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