Last Updated on September 24, 2025 by Galaxy World

Government of Khyber Pakhtunkhwa Benevolent Fund Cell, Administration Department issued a Notification on 19-09-2025 in connection with Interest Free Loan 2025-26 for HBA, MCA, Bicycle, and Motorcycle Advance for the Employees of KPK. The details are as follows: The details are as follows:

Loan/Advance without Interest for HBA, MCA, Bicycle, and Motorcycle Advance for the Employees of KPK

 

Provincial employees of Khyber Pakhtunkhwa can now obtain an advance/loan to purchase a motorcycle, motorcar, house renovation/repair, or bicycle. As per the Notification, I am directed to refer to the subject noted above and to state that the Government of Khyber Pakhtunkhwa has allocated Rs 340 Million (Rs 100 Million for Civil Secretariat Employees and Rs 240 Million for General Employees) for the current financial year 2025-26 on account of the Interest Free Loan Scheme for Provincial Government Employees.

The loan is admissible to all Provincial Government employees serving in BS 1-17 (for Bicycle, Motorcycle, and House Building Advances) and BS-17 and above (for Motor Car Advance Only). The allocated amount for the Interest Free Loan Scheme will be placed at the disposal of the Accountant General, Khyber Pakhtunkhwa, by the Finance Department. In contrast, the Scheme will be executed by the Provincial Benevolent Fund Cell.

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

Terms and conditions and respective Quantum of different categories of loans

 

Eligibility criteria, mode of Installment, and amount of loan in each category are as follows:-

 

Sr. No.	Category	Loan Admissible	Mode of Installments	Eligibility
1.	Motorcar Advance	Rs. 200,000/-	Rs. 3,334/- P.M. in 60 equal installments.	Minimum Service: 5 Years and Maximum Age: 55 Years
2.	House Building Advance	Rs. 25,000/-	Rs. 2,084/- P.M. in 120 equal installments.	Minimum Service: 10 Years and Maximum Age: 50 Years
3.	Motorcycle Advance	Rs. 80,000/-	Rs. 1,334/- P.M. in 60 equal installments.	Minimum Service: 5 Years and Maximum Age: 55 Years
4.	Bicycle Advance	Rs. 8,000/-	Rs. 200/- P.M. in 40 equal installments.	No Criteria

Good Step of the KP Government

 

The KP Government has taken a good step for the welfare of the employees of the province. The employees will now get the advances without any interest. They will be able to buy a car, motorcycle, cycle, and they will also be able to construct their house by getting a loan from the Government. However, the amount of loan is meager, the KP Government should increase the amount to a minimum of 20,00,000/- for House Building Advance, a Minimum of 15,00,000/- for motorcar, and a minimum of 200,000/- for motorcycle purchase.

 

You may also like: MCA, HBA, Motorcycle Advance Loan Calculator

 

 

 

 

Surety Certificate for Loan KPK Employees

 

 

Application Form for Interest-Free Loan Scheme KPK

 

 

 

Pakistan Housing Foundation has also launched the Gray Structure Housing Scheme in Peshawar for the Government employees of BPS-01 to BPS-22 on easy installments. The employees can also avail themselves of this opportunity if it suits them.