Detail of Interest on Advances for the Government Employees

Here I am sharing the Detail of Interest on Advances for the Government Employees. You will know here who are eligible for the interest on advance or not. Detail is as under:

  • There is no interest on cycle advance
  • There is no interest on House Building Advance for the employees of BPS-01 to BPS-15
  • If an employee was granted HBA and he was in BPS-15 or below and later he promoted to BPS-16 or above then there would be no charge of interest on him.
  • In the same way, if an employee is granted HBA in BPS-16 and then he reverted to BPS-15 or below, he would have to pay interest even now he is in BPS-15.
  • The Govt Employee who don’t get interest on GP Fund, will have to pay no interest on HBA as well as motorcycle, car advance.

Reference: Guidebook for Drawing & Disbursing Officer


Interest on Advances


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10 thoughts on “Detail of Interest on Advances for the Government Employees

  1. I have drawn my car advance from 2015 to 2020. Firstly I want to clear that at the time of joining I filled GPF Performa stating interest free. But after some time it becomes automatically interest applied on my pay slip. At the moment I applied for car advance once again I processed application for interest free. But perhaps account section didn’t forward it. Once again I processed application to make GPF interest free. And from December 2019 it automatically converted to interest free through computerized pay slip. While my car advance installments completed in June 2020. Now our DDO is insisting that first there should be a certificate stating GPF interest free from Agpr. Then it will be applicable on computerized pay slip. Also she is saying I have to pay back interest on car advance before Dec 2019 also my GPF should be interest free only in July. In December it will not acceptable. Kindly tell clear picture. Thanka

  2. I have drawn CAR advance of Rs.150000 on Oct 2003 and paid Rs.150000 during 2003 to Oct 2008 and Interest of Rs,54000 during 2008 to Sep 2010. Meanwhile i converted my GPF Interest free with effect from Jan 2007, i.e I Forgoned profit on GPF with effect from June 2006 and I received only Rs.19700 as Profit since 1999. Now I am asking my deptt to recover Rs.19700 from my GPF and Re-imburs me Interest charged(54000) on my CAR advance so that my GPF account will become 100% interest Free. but they are not accepting my argument in the light of ESTA code Admissibility Option Sl 8.4, plz reply.

  3. if someone eligible for both loans and office order issued by department, and then they ask for option… so what to do with that case..kindly update.. (HBA and Conveyance Allowance). 2 separate OO are issued for sanction of loans.

  4. Respected Madam main Frontier CONSTABLERY main molazam ho.rank naik. Main HBA ka liye apply kar sakta ho.federal employee ho.and frontier constablery interior minister ka under atta ha.plz inform me

  5. respected madim assistant promoted in BPS-16 if they obtained loan in BPS-16 as Assistant then they have interest on loan or not. please give me detail reply i can understand.

  6. Madam
    I am Junior School Teacher (JST BPS-14) Education Department Sindh. Please tell me the procedure how to get HBA loan. My department does not guide me. please guide me

    1. 10 years continuous service is required for HBA. You have to submit application alongwith copy of pay slip and CNIC to your accounts office…….

  7. Malik zaheer ud din · Edit

    Respected medam.

    Assistant ke Jo post bps- 14 say bps-16 me upgrade hoi hay un Kay HBA. per interest ho ga ya nahe.


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