The debt management division of the state finance department will now provide advance for the purchase of a motorcycle or scooter to government employees.
Government employees will be eligible to avail the advance twice during their service. Government servants will be eligible for a motorcycle/scooter advance of 50,000 on the first occasion and advance of up to 40,000 on the second occasion.
They will be eligible for the advance only for the purchase of a new vehicle and not secondhand ones. However, there will be no limit on the pay band/grade pay of the government employee to avail the scheme and any government employee will be able to seek the amount.
The advance payment by the state will be made directly to the authorized dealer/supplier from whom the employee is purchasing the vehicle and not to the employee. The difference amount, if any, will have to be borne by the employee.
The motorcycle/scooter purchased will be mortgaged to the state government till the amount is paid to the state. The scheme can be availed by employees starting August 1, 2011.
Starting March this year, the state government has tied up with Bank of India to provide loans of up to Rs five lakh to government employees for the purchase of cars. Employees will pay back the bank loan at an interest rate of 11.50% per annum. The advance for the purchase of the car will be repaid in full in monthly installments by way of salary deduction within a period not exceeding 200 equal monthly installments.
The advances for the purchase of a motor car will be disbursed by the Bank of India up to an aggregate limit of 40 crore altogether.
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