Ban on Motorcar Advance for BPS-16 and Below Employees

As per the news, the federal Government has imposed a Ban on Motorcar Advance for BPS-16 and Below Employees. As per the routine, the Federal Government employees could take motorcar advance when they reached the basic pay of Rs. 35,000/- per month irrespective of their Basic Pay Scale. BPS-16 employees were also eligible for motorcar advance as per clarification. But as per the new rules, the employees of BPS-17 and above can only avail motor car advance. The details are as follows:

News for Ban on Motorcar Advance for BPS-16 and Below Employees

As per the newspaper, the Federal Government has imposed a ban on employees in BPS-16 and below from availing car advance loans. The Ministry of Finance has amended the rules regarding the advance loan scheme. According to the federal government’s instructions, employees in Grade 16 and below will now only be eligible for a motorcycle loan and not for a car loan.
As per the amended rules, employees in BPS-17 to Grade-22 will remain eligible to apply for car advance loans. According to the federal government’s directives, the advance loan will be granted only for the purchase of vehicles. The Ministry of Finance stated that the decision was made in light of limited financial resources. Employees in BPS-16 and below will now only be able to apply for motorcycle advance loans. The Federal Government issued a Notification of Revision motorcar advance, motorcycle advance in 2018.

Amount of Motorcar Advance and Number of Installments

As per the current Federal Government policy, the employees are getting 1 million as a motorcar advance. They refund this amount in a period of 5 years (60 installments) in equal installments.

Amount of Motorcycle Advance and No. of Installments

The Federal Government grants Rs. 1 lac (Rs. 100,000/-) as a motorcycle advance. The employees also have to refund the amount in 60 installments, i. e 5 years. As per the existing conditions, if the employee has Rs. 15001/- per month as basic pay, then the employee is eligible for a motorcycle advance.

Notification

I have not yet received the notification. As soon as I get the Notification, I shall publish the same here at this post for the information of employees.