KPK Interest Free Loan Scheme 2022-23

The government of Khyber Pakhtunkhwa, Benevolent Fund Cell, Administration Department has issued the official Notification letter regarding KPK interest-free loan scheme 2022-23. The Khyber Pakhtunkhwa has allocated Rs. 200 Million (Rs. 130 Million for General Employees and Rs. 70 Million for Secretariat Employees) for the current fiscal year 2021-22 on an interest-free loan scheme in Pakistan for mainly provincial government employees.

The Interest free loan is admissible to all provincial government employees serving in BS-01 to BS-17 (for Bicycle, Motorcycle and House Building Advances) and BS-17 & above (for Motor Car Advances Only). The allocated amount for the interest-free loan KPK scheme will be placed at Accountant General Khyber Pakhtunkhwa’s disposal by the Finance Department. The Scheme will be executed by the Provincial Benevolent Fund Cell. The last date for submission of application form is 30th November 2022.

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

The terms and conditions and respective quantum of different categories of loans under the Scheme are as under:-

Interest Free Loan 2022 KPK Scheme Eligibility Criteria

Eligibility criteria, Mode of installment and amount of loan in each category are as under:-


Category Loan Admissible Mode of Installments



Motorcar Advance Rs. 200,000/- Rs. 3334/- P.M in 60 equal installments Min Service : 5 Years

Max Service : 55 Years

2 House Building Advance Rs. 250,000/- Rs. 2080/- P.M in 120 equal installments

Min Service : 10 Years

Max Service : 50 Years


Motorcycle Advance Rs. 80,000/- Rs. 1340/- P.M in 60 equal installments Min Service : 5 Years

Max Service : 55 Years

4 Bicycle Advance Rs. 8,000/- Rs. 100/- P.M in 40 equal installments

No Criteria

KPK Interest Free Loan 2022 Installments

The installments above will be deposited without any break. In case of default in repayment, interest @ GP Fund will be charged. There will be no quota or special consideration etc. in any case and all such list prepared for the purpose in the past will be deemed cancelled.

Deputationists will not be eligible for the grant of Interest Free Loan Scheme. Loan will be admissible only in one of the category mentioned in (i) of the Terms and conditions. However, after the expiry of the period and return of all the installments another loan can be granted.

Loan will be granted only to those Government Employees who are not availing the loan facility from the existing scheme, duly certified by the concerned DDO.

Any employee availing the facility of Interest Free Loan Scheme will only be relieved from services, in case of resignation, pre-mature retirement, termination etc after the recovery of all the dues. In case of death during service of the loanee Government employees the remaining installments shall be waived off in consultation with Finance Department.

Also Check:

How To Apply For Interest Free Loan 2022 KPK Employees

The application forms of Civil Secretariat employees and its Attached Department shall be enlisted | scrutinized by Benevolent Fund Section Administration Department, Civil Secretariat. Peshawar (on DESP), applications of the Provincial Government Employees working in various Districts / Tribal Districts shall be enlisted / scrutinized by the Deputy Commissioners concerned (on DESP) and applications of Attached Departments shall be enlisted by their respective Provincial Offices (on DESP). Data Entry Software Programme (DESP) is available on Benevolent Fund website

Last date for receipt of application forms for current financial year at concerned offices mentioned at (ix) above is 30/11/2022. After scrutiny of all such applications will be submitted to Provincial Benevolent Fund Cell upto 15/12/2022 the Departments in soft and hard copies, hard copies be submitted in sequence according to the list.

After scrutiny the draw shall be arranged by a Committee. After the approval of the loan grants, Accountant General Khyber Pakhtunkhwa will release the funds to the concerned Administrative Departments, Attached Departments and concerned DDOS for onward release to the Government employees.

Deduction of installments and maintenance of record shall be the responsibility of concerned District Accounts Officers and Accountant General Office Khyber Pakhtunkhwa. Rules 253-A-2 (vi) of GFR will be considered relaxed at present.

Applications for the grant of Interest Free Loan Scheme, for the current financial year ending 30th June, 2023 from the eligible Government Servants, fulfilling the above-mentioned Terms and Conditions are invited for grant of Loan through their respective Departments / authorities on the prescribed application form along-with attested copies of CNIC, Pay Roll and surety Bond on stamp paper as per specimen attached.

I am, therefore, to request to please circulate the Interest Free Loan Scheme amongst all Government Departments / Attached Departments / Subordinates formation for the information of Government Servants. It is further requested that from now and onward final lists of applicants in the said Data Entry Software Program (DESP) along with printed copies and original application forms may be submitted to this office by due date i.e. (15/12/2022), enabling the Provincial Benevolent Fund Cell to finalize the scheme.


  1. Responsibility for delay in submission of lists would totally rest with the Departments concerned as it may result in the deprivation of eligible Government Servants of their legitimate right of availing Interest Free Loan, which is being extended by the Provincial Government as a Welfare scheme.
  2. Incomplete applications or late proposals shall not be entertained.
  3. Applications not routed through Deputy Secretary (Admn), Administration Department (Secretariat Employees) / Deputy Commissioners / Head of attached Departments shall not be entertained.
  4. Applications submitted directly in Benevolent Fund Cell shall not be entertained.
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KPK Interest Free Loan Scheme 2022-23

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