Interest-Free Loan Scheme for Govt.Employees 2021 KPK

A Notification/letter has been issued in connection with the KPK interest-free loan scheme 2021 by the government of Khyber Pakhtunkhwa, Benevolent Fund Cell, Administration Department. Further detail of said notification in same is as under;

Interest-Free Loan Scheme for Govt.Employees 2021 KPK

The loan is admissible to all provincial government employees serving in BS-01 to BS-17 (for Bicycle, Motorcycle, and House Building Advances) and BS-17 and above (for Motor Car Advances Only). The allocated amount for the interest-free loan KPK scheme will be placed at Accountant General Khyber Pakhtunkhwa’s disposal by the Finance Department. The Scheme will be executed by the Provincial Benevolent Fund Cell.

To facilitate government employees, a copy of the circular formaffidavit, and Data Entry Software Program has been provided on the website ( and Facebook (Benevolent Fund KPK) page of Benevolent Fund Cell.

Download Interest Free Loan Scheme Application Form & Affidavit

The terms and conditions and respective quantum of different categories of loans under the Scheme are as under:-

Eligibility Criteria

Eligibility criteria, Mode of installment, and amount of loan in each category are as under:-

S.NoCategoryLoan AdmissibleMode of InstallmentsEligibility
1Motorcar AdvanceRs. 200,000/-Rs. 3334/- P.M in 60 equal installmentsMin Service: 5 YearsMax Service: 55 Years
2House Building AdvanceRs. 250,000/-Rs. 2080/- P.M in 120 equal installmentsMin Service: 10 YearsMax Service: 50 Years
3Motorcycle AdvanceRs. 80,000/-Rs. 1340/- P.M in 60 equal installmentsMin Service: 5 YearsMax Service: 55 Years
4Bicycle AdvanceRs. 8,000/-Rs. 200/- P.M in 40 equal installmentsNo Criteria

ii). The installments above will be deposited without any break. In case of default in repayment, interest @ GP Fund will be charged.

iii). There will be no quota or special consideration etc., in any case, and all such lists prepared for the purpose in the past will be deemed canceled.

iv). Deputationists will not be eligible for the grant of interest-free loan scheme 2021.

Terms and Conditions For KPK Interest Free Loan 2021

v). Loan will be admissible only in one of the categories mentioned in (i) of the Terms and Conditions. However, after the expiry of the period and the return of all the instalments, another loan can be granted.

vi). Loan will be granted only to those Government employees who are not availing of the loan facility under the existing scheme, duly certified by the concerned DDO.

vii). Any employee availing of the facility of interest-free loan scheme will only relieve from services, in case of resignation, pre-mature retirement, termination etc., after recovering all the dues.

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

ix). The application forms of Civil Secretariat employees and its attached Department shall be enlisted/scrutinized by Benevolent Fund Section Administration Department, Civil Secretariat, Peshawar (on DESP), applications of the Provincial Government employees working in various Districts / Tribal Agencies shall be enlisted/scrutinized by the Deputy Commissioners / Political Agents concerned (on DESP) and their respective provincial offices shall enlist applications of attached Departments (on DESP), Data Entry Software Programme (DESP) is available on Benevolent Fund Website.

x). After scrutiny, the draw shall be arranged by a committee.

xi). After the approval of loan grants, Accountant General Khyber Pakhtunkhwa will release the funds to the concerned Administrative Departments, Attached Departments and concerned DDOs for onward release to the Government employees.

xii). Applications for the grant of KPK interest-free loan scheme 2021, for the current financial year ending 30th June 2020 from the eligible Government servants, fulfilling the above-mentioned terms and conditions.

Interest Free Loan KPK
Interest Free Loan Scheme 2020 Application Form
Interest Free Loan Scheme 2020 Affidavit

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