Last Updated on October 31, 2021 by Galaxy World
According to Sl. No. 5 of ESTA CODE & Finance Division O.M.No.F.6(1)-R-8/74 dated 18-10-1975, there is facility of Grant of Interest Free Loans to Government Servants Who Don’t Receive Interest on Provident Fund Deposits. Detail is as under:
Under the existing rules, interest is not credited by Government to the Provident Fund Account of a Muslim subscriber if he does not wish to receive it. The question of the grant of interest free loans to such subscribers had been under consideration of the Government for some time past. It has now been decided that no interest may be charged by Government on the house building advance and conveyance advances drawn by a Government servant whose deposits in the Provident Fund account carry no interest, subject to the following conditions:-
(i) The Government servant has not received interest on his Provident Fund accumulations prior to the drawal of the advance from the Government;
(ii) The interest to be remitted under these orders shall not exceed the amount of interest foregone by the Government servant concerned on his Provident Fund Account upto the date on which the interest on Government loans would become due for payment;
(iii) If at any time in future the Government servant who has availed himself of this concession chooses to take interest on his Provident Fund deposits, he will be required to pay in full to the Government the amount of interest accrued on the advance drawn by him from the Government.
- The above decision will also be applicable in the case of Government servants who have already drawn advances from the Government but the recovery of interest charges accrued thereon has not been made from them.