KP govt announces interest-free loans for employees

PESHAWAR: The Khyber Pakhtunkhwa (KP) government has announced a major relief package for its employees, offering interest-free loans for purchasing vehicles and building houses.

The initiative applies to government employees from grade 1 to 17.

According to an official notification, these loans will be repayable in easy installments.

The provincial government has allocated a total of Rs340 million for this scheme in the current year’s budget.

Out of this, Rs100 million has been earmarked for secretariat employees, while Rs240 million has been set aside for other government staff.

Employees seeking to purchase vehicles will be eligible for an advance loan of Rs200,000, whereas those planning to construct houses can avail up to Rs250,000.

Official sources stated that the scheme is aimed at providing financial support to provincial employees and reducing their economic burden.

Earlier this year, the Khyber Pakhtunkhwa government launched “Ehsaas Apna Ghar Scheme” to provide low-income families with interest-free loans to build, renovate or expand their homes.

According to a spokesman of the Housing Department, deserving families would get interest free loan of 1.5 million rupees with a repayment period of seven years.

The spokesman said four billion rupee were allocated for the scheme.

The government has devised seven-year plan with a maximum monthly installment of 18,000 rupees.