Loan & Advances

LOAN AND ADVANCES
By
SAFDAR SHAH,
 PERMANENT ADVANCE / REVOLVING
IMPREST. (Rule – 132)
 Advance is granted to the officers who
may have to make payments before they
can place themselves in funds by drawing
on the treasury. It is meant for emergent
petty advances for all kinds.
CONDITIONS.
 The amount of advance will be fixed by the
Government.
 HOD may sanction the amount of advance to
their subordinate officers in consultation with the
AG concerned.
 Application for grant of advance or revision of
advance must be submitted through AG
concerned.
 The amount of advance must not be larger than
is absolutely essential.
 These advances should not be multiplied
unnecessary.
 It should be utilized only for emergent expenses.
 The holder is responsible for safe custody of the
amount and accountable for the total amount
LOAN AND ADVANCES TO
GOVERNMENT SERVANTS
 As a general rules, temporary Government
Servant is not paid advances because his
pay does not constitute adequate security
for the advance.
 No interest will be charged on the advance
paid for purchase of cycles.
 No interest will be charged from
Government servants in BPS 1 – 15 on
House Building Advance.
 No interest will be charged from BPS-16
officer when advance was sanctioned he
was in BPS 15 or below.
 On reversion to BPS-15 or below, interest
will be charged.
 No interest will be charged who does not
claim interest on his GP fund.
HOUSE BUILDING ADVANCE.
 The advance is granted only once in service for

the construction of new house.
 Second advance may be granted for
construction of house at Islamabad provided
previous advance has been repaid.
 The advance should not exceed 36 months pay.
 Refund will be made in 120 equal installments.
 Government servants in BPS-1 – 3 in 240
installments.
 In order to secure the amount of advance
a mortgage deed will be obtained in the
name of President of Pakistan.
HOUSE BUILDING ADVANCE TO TEMPORARY
GOVERNEMNT SERVANT.
 The house building advance may be granted to

temporary government servants also, on the
following conditions:-
 the temporary Government servant has
completed at least 10 years continuous service.
 BPS-1 & 2 temporary employees are eligible
irrespective of the length of temporary service.
 Head of the department certifies that the
services of the Government servant concerned
are not likely to be terminated within the period
prescribed for the repayment of advance;
 Security of two permanent Government servants
(who are not likely to retire before the house is
built and mortgaged) is furnished which will be
released when the house has been built and
mortgaged to the Government;
 Where the land has already been acquired, it
should be mortgaged together with the house to
be built thereon the advance is sanctioned.
 In case the advance is required for the purchase
of land, the first installment should be limited to
25% of the total advance or the actual cost of
land, whichever is less;
 The Government servant concerned should
produce a certificate from the appropriate house
building society. Improvement trust or CDA etc.
that the land has been allotted to him. This
should also indicate the price and the amount of
installment immediately payable after allotment.
MOTOR CAR ADVANCE.
 Official drawing pay Rs.35,000 p.m or above.
 Total amount of advance 1,000,000.
 Second advance can be granted subject to
clearance of previous advance.
 Recovery in 60 equal installments.
 Interest in one or more installments.
 Following documents should be provided to A.G.
 Vender receipt
 Mortgage Bond.
 Insurance policy.
 A letter in Form GFR – 18.
MOTOR CYCLE ADVANCE.
 Official drawing pay Rs. 15.001-34,999
 18 months pay or Rs. 100,000 .
 Other conditions are the same as in
M.C.A.
Revision of Bicycle, Motor Cycle
& Motor Car advances 2011
S. # TYPE OF ADVANCE ELIGIBILITY AMOUNT
1 Bicycle Advance Pay upto 7500/- Rs. 7,000
2 Motor Cycle/Scooter Pay between Rs. 75,000
Advance Rs.7501/- p/m/ tp
Rs.19,999/- p.m.
3 Motor Car Adv. Pay Rs. 20,000/- Rs.450,000
p.m. and above
Authority: Finance Division (Regulation Wing) No.F.8 (2)-Reg.7/87 (Vol.II)-288
dated 20-7-2012
Revision of Bicycle, Motor Cycle
& Motor Car advances 2018
S. # TYPE OF ADVANCE ELIGIBILITY AMOUNT
1 Bicycle Advance Pay upto 15000/- Rs.10,000
2 Motor Cycle/Scooter Pay between Rs Rs.100,000
Advance 15001/- p/m/ to
Rs34,999/- p.m.
3 Motor Car Adv. Pay Rs. 35,000/- Rs.1,000,000
p.m. and above
Authority: Finance Division (Regulation Wing) No.F.8 (2)-Reg.7/87-698
dated 9th January 2018
STATEMENT SHOWING THE DEDUCTION OF MOTOR
CYCLE ADVANCE IN RESPECT OF MR. YOUNIS ALI
KHAN GHOURI, STENOGRAPHER, S.T.I, ISLAMABAD.
Month & Year No. of Amount of Balance

Installments Installments
Jan.,2001 1st Rs. 625/- 34375/-
Feb.,2001 2nd Rs. 625/- 33750/-
March,2001 3rd Rs. 625/- 33125/-
April ,2001 4th Rs. 625/- 32500/-
May,2001 5th Rs. 625/- 31875/-
Month & Year No. of Amount of Balance
Installments Installments
June,2001 6th Rs. 625/- 31250/-
July, 2001 7th Rs. 625/- 30625/-
Aug. 2001 8th Rs. 625/- 30000/-
Sep.,2001 9th Rs. 625/- 29375/-
Oct. 2001 10th Rs. 625/- 28750/-
Nov., 2001 11th Rs.625/- 28125/-
Dec., 2001 12th Rs.625/- 27500/-
Jan., 2002 13th Rs.625/- 26875/-
Feb., 2002 14th Rs.625/- 26250/-
March,2002 15th Rs.625/- 25625/-
April,2002 16th Rs.625/- 25000/-
May, 2002 17th Rs. 625/- 24375/-
June, 2002 18th Rs. 625/- 23750/-
July, 2002 19th Rs. 625/- 23125/-
Aug., 2002 20th Rs. 625/- 22500/-
Sep., 2002 21st Rs. 625/- 21875/-
Oct., 2002 22nd Rs. 625/- 21250/-
Feb., 2004 47th Rs. 625/- 5625/-
March,2004 48th Rs. 625/- 5000/-
April, 2004 49th Rs. 625/- 4375/-
May, 2004 50th Rs. 625/- 3750/-
June, 2004 51st Rs. 625/- 3125/-
July, 2004 52nd Rs. 625/- 2500/-
Aug., 2004 53rd Rs. 625/- 1875/-
Sep., 2004 54th Rs. 625/- 1250/-
Oct., 2004 55th Rs. 625/- 625/-
Nov., 2004 56th Rs. 625/- Nil
Progressive Rs.997,500/-
Total:
Formula
Formula:- Progressive Total x Rate of Interest

12
997500 x 15% = 12,
469/-
12 x 100
BICYCLE ADVANCE .
 Can be granted to a temporary or
permanent official in receipt of pay not
exceeding Rs. 15,000.
 * Amount of advance should not
exceed Rs.10,000/-
 * Official with 3 year service at his
credit.
 Sanctioning authority should satisfy
itself that Government Servant shall
continue in service till the completion of
recovery.
 Second advance is allowed.
Rate of interest on HBA/Conveyance
advance
Year Rates of mark up
2003-04 9.23%
2004-05 8.22%
2005-06 10.65%
2006-07 10.21%
2007-08 9.96%
2008-09 13.65%
2009-10 12.59%
2010-11 13.61%
2011-12 12.64%
2012-13 10.65%
2013-14 11.79%
2014-15 10.53%
2015-16 7.37 %
ADVANCE TA ON TOUR (Rule
269)
 Advance of TA on tour may be allowed to cover
the personal traveling expenses of the
Government Servant.
 * The advance should be adjusted
immediately on return to headquarter or before
closing the financial year i.e. 30th June which
ever is earlier.
 * Second advance cannot be paid unless
previous advance has been adjusted.
ADVANCES ON TRANSFER
(Rule - 265)
 A Government Servant under orders of transfer
may be allowed advance of pay not exceeding
one month
 * He may be allowed advance of
traveling allowance as admissible under the rule.

 * The advance of pay can also be

drawn at the new station if it is not drawn at the
old station.
 These advances should be recorded in the
LPC of the Official.
 * The advance of pay is
recoverable in 3 equal installments.
 * The advance of traveling
allowance is adjusted through the
traveling allowance bill.
Thank You

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LOAN AND ADVANCES

 The advance is granted only once in service for

 The house building advance may be granted to

Month & Year No. of Amount of Balance

Sep., 2004 54th Rs. 625/- 1250/-

Oct., 2004 55th Rs. 625/- 625/-

Nov., 2004 56th Rs. 625/- Nil

Formula:- Progressive Total x Rate of Interest

 * The advance of pay can also be

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