PESHAWAR: To provide financial assistance to government employees, the Khyber Pakhtunkhwa government has allocated Rs600 million for interest-free loan to government employees during the financial year 2026-27.
According to a notification issued by the Benevolent Fund Cell, of the total Rs600million, Rs350 million has been allocated for Civil Secretariat employees and Rs250 million for general government employees.
Under the scheme, employees can avail these loans for bicycles, motorcycles, motor cars and house building. The motorcycle advance has been fixed at up to Rs80,000, house building advance at Rs250,000 and bicycle advance at Rs8,000.
The loans will be recovered through fixed monthly instalments, while no interest will be charged subject to the prescribed terms and conditions. For a motor car, government employees must have at least five years of service and be not more than 55 years of age.
A house building advance requires at least 10 years of service, with the maximum age set at 50 years. For a motorcycle advance, employees must have at least five years of service and be no more than 55 years old. No specific service eligibility condition has been prescribed for the bicycle advance.
An employee can obtain a loan under only one category at a time and will become eligible for another category after fully repaying the previous loan. The last date for submitting applications is December 10, 2026. Relevant offices will scrutinise applications and forward them to the Benevolent Fund Cell by December 15.
The loans will be distributed through balloting after completion of the scrutiny process. The notification said incomplete applications, applications submitted outside the prescribed channel and those sent directly to the Benevolent Fund Cell by employees would not be accepted.
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