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GOVERNMENT OF KARNATAKA

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FINANCE DEPARTMENT

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REVISED GOVERNMENT ORDER RELATED TO
HOUSE BUILDING, HOUSE PURCHASE, HOUSE
REPAIRS AND ADVANCE FOR PURCHASE OF VEHICLES

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GOVERNMENT OF KARNATAKA

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FINANCE DEPARTMENT

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REVISED GOVERNMENT ORDER RELATED TO
HOUSE BUILDING, HOUSE PURCHASE, HOUSE

REPAIRS AND ADVANCE FOR PURCHASE OF VEHICLES

1994

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10

PROCEEDINGS OF THE GOVERNMENT OF KARNATAKA
Sub :—Revision of the ceiling limits of House Building/House
Purchasc/Housc Repairs and advance for purchase of
vehicles and further continuation of other advances.

GOVERNMENT ORDER NO. FD 48 AIIB 94,
BANGALORE, DATED 21-10-1994.
Read :—
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

G.O. NO. FD 4 AMC 79, Dated 12-3-1979.
G.O. NO. FD 57 AMC 81, Dated 2-2-1982.
G.O. NO. FD 101 AMC 82, Dated 9-3-1983.
G.O. NO. FD 82 AHB 83. Dated 27-6-1983.
G.O. NO. FD 70 AHB 85. Dated 4-7-1985.
G.O. NO. FD 35 AHB 87, Dated 18-3-1987.
G.O. NO. FD 68 Makamu 91, Dated 4-12-1991.
G.O. NO. FD 27 Makamu 90, Dated 21-10-1992.
G.O. NO. FD 8 AMC 90, DATED 29-5-1993.
Interim Report of the Official Committee.

Preamble :—
The Fourth Pay Commission has recommended for upward
revision of the advance for House Building and purchase of Motor
Vehicles by Government employees. The recommendation of the Pay
Commission was examined by the Official Committee and the repoil
of the Official Committee has been examined by Government.
Apart from the House Building Advance and Motor Cycle
Advance, the facility of advance for purchase of personal Computer
(read at 9 above), Equipment (read at 5 above), Solar Water Heating
System (read at 2 above), Solar Cookers (read at 3 above) and for
repairs of Motor Cars owned by Government employees (read at 1
above) and advance for festivals is available to the Government
employees. To bring out a consolidated order on advances, the said
advances are included in this Government Order.

Government has also examined to provide advance to the
physically handicapped Government employees to purchase a
Triwheelcr (engine operated) to enable them to attend the office.

11

ORDER
After examining in detail the extension of facilities of advances
to State Government employees, Government is pleased to issue the
following order

HOUSE BUILDING/HOUSE PURCHSE/H OUSE
REPAIR ADVANCES

I.

1. In ease of an officer of the All India Services borne
permanently on the Stale Cadres of the IAS/ IPS and IFS.

a)

House Building/House Purchase Advances :—

i)

Amount of advance

ii)

Rate of interest

:

70 months pay subject to
maximum of Rs.3.00 Lakhs.

Sanctioned advance upto :—
Rs.
50,000

iii)

a

-

7.5%

1,00,000 -

1,50,000 2,00,000 -

9%
10%
11%

2,25,000 3,00,000 -

11.5%
12%

r

Per Annum

Maximum of :—

Repayment

Principal
Interest

b)

House Repair Advance :—

i)

Amount of advance

:

180 months
60 months

40 months pay subject to a maxi­
mum of Rs. 1.20 Lakhs.

12

iii)

Maximum of :—

Repayment

Principal
Interest

-

36 months
24 months

2. In case of a Government servant (other than those belonging
to the All India Services) :—

a) House Building/House Purchase Advances :—
i)

Amount of advance : 70 months pay subject to a maximum
of Rs. 3.00 Lakhs.

ii)

Eligibility

: A permanent Slate Government em­
ployee who has pul in not less than 5
years of service ;
Sanctioned advance from :—

iii)

Rate of Interest

: Rs. 50,001 to 1,00,000-12% l„
.
• Per Annum
1,00,001 to 3,00,000-15.5% I
Maximum of :—

iv) Repayment

Principal
Interest

-

180 months
60 months

b) House Repair Advance :—
i)

Amount of advance : 40 months pay subject to a maximum
of Rs. 1.20 Lakhs.

ii)

Eligibility

: A permanent Slate Government
employee who has put in not less than
5 years of services ;

Sanctioned advance from :—
iii)

Rale of interest

: Rs. 50,001 to 1,00,000-12% i
1 Per Annum
1,00,001 to 1,20,000-15.5% 1

Maximum of :—
iv) Repayment

: Principal Interest
-

36 months
24 months

Note:—‘ Pay’ for the purpose of HBA/HRA/HPA should include basic pay
plus DA admissible thereon upto and including the DA
sanctioned with effect from 1-7-1992.

13

II.

MOTOR VEHICLE ADVANCES

a) Motor Car Advance :—
i)

Amount of advance
First Occasion

Rs. 1,20,000/- or 35 months basic
pay or the price of the Car to be

purchased whichever is least.
Second or subsequent

occasions

Rs. 1,20,000/- less the profit earned
on the sale of the previous vehicle
purchased with a Government loan
(i.c. the excess of the sale pro­

ceeds over the price paid at the
time ol its purchase) or 35 months

basic pay or the price of the Car
to be purchased, whichever is the
least.

ii)

Eligibility

A permanent Government servant

including an officer of the All

India Services borne permanently

on the State Cadre of the IAS/IPS/
1FS drawing a basic pay of Rs.
3,500/- or more per month.
iii)

Rale of interest

iv)

Repayment

12.5% per annum.

Maximum of:—
Principal

-

100 months

Interest

-

20 months

14

b) Scooter/Motor Cycle :—
Amount of Advance :—
i)

First Occasion or sub­
sequent occasion

ii)

Eligibility

iii)

Rate of interest

iv)

Repayment

c)

Moped :—

i)

Amount of advance :—
First Occasion or sub­
sequent occasions

12 months Basic pay subject to a
maximum of Rs. 20,000/- for
purchase of a new or used
vehicle :
A permanent . Government Ser­
vant, including an officer of the
All India Services borne perma­
nently on the Stale Cadres of the
1AS/1PS/1FS drawing a basic pay
of Rs. 1,800/- or more per month.
11.5% per annum.

Maximum of :—
Principal

-

60 months

Interest

-

12 months

8 months Basic pay subject to a
maximum of Rs. 7,500 for pur­
chase of new or used vehicle ;

ii)

Eligibility

A Government Servant, drawing
basic pay of Rs. 1,500/- or more
per month.

iii)

Rale of interest

11.5% per annum.

iv)

Repayment

Maximum of :—
Principal

-

50 months

Interest

-

10 months

Note :— A driver of a State Government vehicle is eligible for advance to
purchase Moped if he is drawing a basic pay of Rs. 1,000/- and
above per month.

15

cl) Triwheeler :—
i)

Amount of advance

The cost of the Triwhcclcr or
Rs. 30,000/- whichever is less ;

ii)

Eligibility

A
permanent
Government
employee who is ‘physically
handicapped as specified in the
relevant G.O.

iii)t Rate of interest
iv)

12.5% per annum.

Maximum of :—

Repayment

Principal

-

100 months

Interest

-

20 months

Note :— All other conditions applicable to Motor Car advance in
K.F.C. 1958 is applicable to this advance.

III.

OTHER CONVEYANCES
Bicycle Advance :—
i)

Amount of advance

Maximum of Rs. 1,200/- .

ii)

Eligibility

A Government Servant drawing .a
basic pay below Rs. 1,500/- per
month.

iii)

Rate of interest

9% per annum.

iv)

Repayment

IV.

Maximum of:—
Principal

-

20 months

Interest

-

10 months

COMPUTER ADVANCE
i)

Amount of advance

The cost of the personal Computer

or Rs. 50,000/- whichever is less.

16

ii)

Eligibility

A permanent Government servant,
ineluding an officer of the AH
India Services borne permanently
on the Stale Cadres of the IAS/
1PS/IFS drawing a basic pay of
Rs. 3,000/- or more per month.

iii)

Rale of interest

8. 5% per annum.

iv)

Repayment

Maximum of :—
Principal

-

72 months

Interest

-

28 months

Note :— Employees who are availing the facility ol above advance
have to furnishdetails in a certificate annexed to this order.

EQUIPMENT ADVANCE

V.
i)

Amount of advance

ii)

Eligibility

iii)

Rate of interest

iv)

Repayment

:

5 months basic pay subject to a
maximum of Rs. 6,000/A Government Servant, includ­
ing an officer belonging to All
India Services who are posted to
New Delhi or to other places
outside the State for work.

:

Interest free

:

Maximum of 24 months.

FEST IVA L A D VA N C E :

VI.
i)

Amount of advance

:

ii)

Eligibility

:

75% of the basic pay rounded of
to the nearest multiple of
Rs. 10/- and subject to a maximum
of Rs. 1,000/- once in a financial
year.
A. Government Servant, including
an officer of the Ail India Service
borne permanently on the State
Cadres of IAS/IPS/IFS.

17

iii) • Rate of Interest
iv)

VII.

Interest Free

Repayment

Maximum of 10 months

SOLAR WATER HEATER ADVANCE

i)

Amount of advance

8 months Basic pay or Rs.5,000/or the cost of Heater whichever is
least ;

ii)

Eligibility

A permanent Government Servant
or a temporary Government servant
who has completed a continuous
service of not less than 5. years
provided the sanctioning authority ■
is satisfied that hc/shc is likely to
continue in service, till the advance
sanctioned is fully repaid and who
is residing in a house owned by him
or by his spouse and intends to slay
in the said house after retirement;

iii)

Rate of interest

iv)

Repayment

:

12.5% per annum.
Maxi mu in of :—
Principal

-

50 months

Interest

-

8 months

VIII. SOLAR COOKER ADVANCE
J)

Amount of advance

ii)

Eligibility

Rs. 300/- or the cost of Solar
Cooker whichever is less.

.

Must be a permanent Government
servant or a temporary Government
servant who had completed a con­
tinuous service of not less than 5
years, provided the sanctioning
authority is satisfied that he is
likely to continue rn service, till the
advance sanctioned is fully repaid ;

18

iii)

Rate of interest

iv)

Repayment

:

12.5% per annum.

Maximum of :—
Principal

-

10 months

Interest

-

1 month

MOTOR VEHICLE REPAIR ADVANCE
i)

Amount of advance

ii)

Eligibility

iii)

Rate of interest

iv)

Repayment

:

Not exceeding Rs. 5,000/- at a
time.
A Government Servant owning a
Motor Car.

:

12.5% per annum.

Maximum of :—
Principal

-

50 months

Interest

-

10 months

The total deductions on account of all advances taken
should not exceed 40% of gross emoluments.
Apart from above all other existing provisions of K.F.C. 1958
and respective executive orders continue io hold good.
Necessary amendments to K.F.C.
separately.

1958 will be issued

This order will come into force with immediate effect.

By Order and in the name of the Governor of Karnataka,

N. LAKSHMANA RAO,
Under Secretary to Government,
Finance Department.

19

ANNEXURE TO GOVERNMENT ORDER NO. FD 4S AHB 94
DATED 21st OCTOBER 1994

CERTIFICATE

working as

I

in the Department

have purchased a Personal Computer by availing the Computer

sanctioned vide Order No.

advance of Rs

The details of the Computer purchased are as follows :—

1. Make

:

2. Serial No.

:

3.

4.

Name of the
Manufacturing company

From whom purchased

:
:

«
Signature.

Printed by:-

’Hie Director of I’rinling. Stationery and l*ublicalions.
Government Preas. Hangalorc/WD 5135. dated 24-10-94.

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