Financial Rules · Loans & Advances
LOANS & ADVANCES
Loans and Advances to Andhra Pradesh Government Employees — practical reference covering AP Financial Code provisions, eligibility, sanction, security, utilisation, interest, recovery, Government Orders, audit checks and current verification requirements.
Overview
Loans and advances to Government servants are sanctioned under the AP Financial Code and specific Government Orders. Each advance has its own eligibility, ceiling, security, utilisation, interest and recovery conditions. The pay framework (RPS) is relevant only where the governing order refers to pay.
Two Government Orders are central to this page
G.O.Ms.No.130 dated 01-07-2016 (House Building Advance) and G.O.Ms.No.167 dated 20-09-2017 (conveyance, marriage, computer, festival and educational advances). Both were issued in the RPS-2015 framework.
What this page does not do
It does not increase an older ceiling because pay was revised, and it does not describe a historical figure as a current entitlement.
AP Financial Code – Loans to Government Servants
The principal AP Financial Code reference for employee loans is the chapter dealing with loans and advances to Government servants. The training material treats Articles 226–244 as the principal employee-loan reference. Article titles are shown only to the extent the available material establishes them.
| Article | Subject | Practical Relevance |
|---|---|---|
| 226 onward | Loans to Government servants | Employee loans and advances |
| Relevant succeeding Articles | Interest-bearing advances | Conveyance and other advances |
| Relevant Articles | Non-interest-bearing advances | Festival and other advances |
| Relevant Articles | Recovery / interest / conditions | DDO and accounts control |
General Principles
REPAYING CAPACITY
Repayment capacity of the employee should be assessed before sanction.
BUDGET PROVISION
Sufficient budget provision must be available.
GOVERNMENT SECURITY
Government dues and advances must be adequately safeguarded.
DOCUMENT VERIFICATION
Required documents should be examined before and after sanction.
RECOVERY
Recovery should be properly scheduled, monitored and completed as prescribed.
NOT AUTOMATIC ENTITLEMENT
Sanction of a loan/advance is subject to the applicable rules, eligibility, budget and competent authority.
Classification
INTEREST-BEARING
- House Building Advance
- Conveyance Advance
- Marriage Advance
- Computer Advance
- Other applicable advances
NON-INTEREST-BEARING / OTHER ADVANCES
- Festival Advance
- Special Festival Advance
- Educational Advance
- Medical / Pay / TA advances where applicable
- Other advances governed by specific orders
House Building Advance (HBA)
Purchase of house site
Purchase of ready-built house/flat
Construction of house on owned site
Site-cum-construction
Repairs/extensions/improvements
G.O.Ms.No.130
Finance (HR.VI-A&L-TA) Department · Dated 01-07-2016
Loans and Advances – House Building Advance – Admissibility in Revised Pay Scales, 2015 – Recommendation of Tenth Pay Revision Commission – Accepted – Orders – Issued.
These figures must not be described as 2026 current rates unless separately verified.
HBA ceilings – G.O.Ms.No.130
| Basic Pay | HBA Ceiling | Limitation |
|---|---|---|
| Up to ₹26,600 | ₹10,00,000 | 72 times Basic Pay or ceiling, whichever is less |
| Above ₹26,600 to ₹42,490 | ₹12,30,000 | As prescribed in the GO |
| Above ₹42,490 to ₹61,450 | ₹15,00,000 | As prescribed in the GO |
| Above ₹61,450 | ₹20,00,000 | As prescribed in the GO |
| AIS Officers working in State | ₹25,00,000 | 50 times Basic Pay or ceiling, whichever is less |
HOUSE SITE
10 times Basic Pay or ₹2,00,000, whichever is less.
REPAIRS / EXTENSIONS
20 times Basic Pay or ₹4,00,000, whichever is less.
RECOVERY – HBA
300 monthly instalments: 240 instalments towards principal, 60 instalments towards interest.
RECOVERY – REPAIRS
90 monthly instalments: 75 instalments towards principal, 15 instalments towards interest.
SITE ADVANCE
60 instalments towards principal + 12 instalments towards interest, as prescribed.
INTEREST
Class-IV: 5% p.a. Others: 5.50% p.a.
G.O.Ms.No.130 – RPS-2015 provision; verify subsequent amendments / current applicability before sanction.
HBA procedure
- 1Step 1 — Application
- 2Step 2 — Eligibility verification
- 3Step 3 — Repayment capacity
- 4Step 4 — Budget availability
- 5Step 5 — Seniority / priority where applicable
- 6Step 6 — Sanction by competent authority
- 7Step 7 — Agreement / security
- 8Step 8 — Mortgage / title verification
- 9Step 9 — Drawal
- 10Step 10 — Utilisation
- 11Step 11 — Insurance / required compliance
- 12Step 12 — Recovery monitoring
- 13Step 13 — Final adjustment / closure
Processing time limits are not stated here because the governing source for them is not established in the available material.
HBA Eligibility / Ceiling Reference Calculator
- Applicable GO category
- HBA slab — Above ₹42,490 to ₹61,450
- Reference ceiling
- ₹15,00,000
- Basic-pay multiple
- 72 × Basic Pay = ₹36,00,000
- Maximum under the selected GO
- ₹15,00,000
- Proposed amount
- Not entered
- Lower of ceiling / multiple / cost
- ₹15,00,000
- Indicative principal recovery
- 240 monthly instalments
- Indicative interest recovery
- 60 monthly instalments
- Indicative interest rate
- 5.50% p.a.
Verify current applicability. This calculator is a reference tool based on the selected Government Order. Final sanction must be based on the latest applicable Government Order and competent authority.
HBA interest calculator
- Monthly principal instalment
- ₹4,167
- Simple interest reference
- ₹11,00,000
- Diminishing-balance reference
- ₹5,52,292
- Interest for the entered period
- Enter both dates
- Principal / interest breakup
- ₹10,00,000 principal + ₹11,00,000 interest (simple basis)
Formulas used
- Simple interest = Principal × Rate × Time ÷ 100
- Diminishing balance reference = Average balance × Rate × Time ÷ 100
- Monthly principal instalment = Principal ÷ number of principal instalments
- Period interest = Outstanding balance × Rate × Months ÷ (100 × 12)
One formula does not apply to every Government loan. Where the governing Government Order prescribes a different method of calculation, that method must be followed.
HBA Document Checklist
Conveyance Advance
Historical training material refers to G.O.(P) No.78, Finance (A&L), dated 03-04-2006. The RPS-2015 revisions were issued later in G.O.Ms.No.167 dated 20-09-2017 and are shown separately below.
G.O.(P) No.78, Finance (A&L), dated 03-04-2006
Historical provisions from uploaded training material
| Vehicle | Historical provision |
|---|---|
| Motor Car | 15 times Basic Pay or ₹3,00,000 or cost of vehicle, whichever is less |
| Motor Cycle | ₹40,000 or cost, whichever is less |
| Moped | ₹15,000 or cost, whichever is less |
| Bicycle | ₹2,500 |
HISTORICAL TRAINING MATERIAL — these figures, including historical interest figures, are not converted into current figures and must be verified against the latest applicable order.
G.O.Ms.No.167 dated 20-09-2017 – Complete Table
G.O.Ms.No.167
Finance (HR.VI-A&L-TA) Department · Dated 20-09-2017
Loans and Advances – Admissibility in Revised Pay Scales, 2015 – Recommendation of Pay Revision Commission 2015 – Accepted – Orders – Issued.
| Advance | Eligibility / Basic Pay | Ceiling / Amount | Recovery |
|---|---|---|---|
| Motor Car | Basic Pay ₹37,100 and above | 15 months Basic Pay or ₹6,00,000 or actual cost, whichever is less | 135 principal + 65 interest |
| Motor Cycle / Scooter | Basic Pay ₹22,460 and above | 7 months Basic Pay or ₹80,000 or actual cost, whichever is less | 80 principal + 16 interest |
| Moped | Basic Pay ₹16,400 and above; drivers with 2 years service as specified | 7 months Basic Pay or ₹35,000 or actual cost, whichever is less | 60 principal + 16 interest |
| Bicycle | Employees including Class-IV, subject to conditions | ₹10,000 or actual cost, whichever is less | 26 principal + 4 interest |
| Personal Computer | Basic Pay ₹16,400 and above | ₹50,000 | 135 principal + 65 interest |
| Festival Advance | As prescribed | ₹7,500 / ₹5,000 for Class-IV as prescribed | 10 instalments |
| Special Festival Advance – APCO Cloth | Gazetted / Non-Gazetted / Class-IV | ₹7,500 / ₹6,000 / ₹4,500 | 10 instalments |
| Educational Advance | Non-Gazetted / Class-IV | ₹7,500 | 10 instalments |
Marriage Advance – G.O.Ms.No.167
| Purpose | Category | Ceiling |
|---|---|---|
| Marriage of male employee / son | Class-IV | 15 months pay or ₹75,000, whichever less |
| Marriage of male employee / son | Others | 15 months pay or ₹1,25,000, whichever less |
| Marriage of female employee / daughter | Class-IV | 15 months pay or ₹1,00,000, whichever less |
| Marriage of female employee / daughter | Others | 15 months pay or ₹2,00,000, whichever less |
Recovery
70 instalments principal + 10 instalments interest.
Interest
Class-IV – 5%; Others – 5.5%.
Personal Computer Advance
Eligibility
Basic Pay ₹16,400 and above
Amount
₹50,000
Recovery
135 principal + 65 interest
Interest
5% Class-IV; 5.5% others
These are G.O.Ms.No.167 RPS-2015 provisions and should not automatically be treated as the current 2026 ceiling.
Festival, Special Festival & Educational Advances
FESTIVAL ADVANCE
- ₹7,500
- Class-IV ₹5,000
- 10 instalments
SPECIAL FESTIVAL ADVANCE – APCO CLOTH
- Gazetted ₹7,500
- Non-Gazetted ₹6,000
- Class-IV ₹4,500
- 10 instalments
EDUCATIONAL ADVANCE
- Non-Gazetted / Class-IV ₹7,500
- 10 instalments
Other / Non-Interest-Bearing Advances
| Advance | Governing order | Ceiling | Recovery | Status |
|---|---|---|---|---|
| Festival Advance | G.O.Ms.No.167 dated 20-09-2017 | ₹7,500; Class-IV ₹5,000 as prescribed | 10 | Current applicability to be confirmed from subsequent Government Orders |
| Special Festival Advance – APCO Cloth | G.O.Ms.No.167 dated 20-09-2017 | Gazetted ₹7,500; Non-Gazetted ₹6,000; Class-IV ₹4,500 | 10 | Current applicability to be confirmed from subsequent Government Orders |
| Educational Advance | G.O.Ms.No.167 dated 20-09-2017 | ₹7,500 | 10 | Current applicability to be confirmed from subsequent Government Orders |
| Medical Advance | Latest order not located in the available source set | Not established in the available source set | Refer to the governing order | Latest order not located in the available source set |
| Pay Advance | Latest order not located in the available source set | Not established in the available source set | Refer to the governing order | Latest order not located in the available source set |
| Travelling Allowance (TA) Advance | Latest order not located in the available source set | Not established in the available source set | Refer to the governing order | Latest order not located in the available source set |
Where no verified current ceiling is available: refer to latest applicable Government Order / Finance Department instructions.
Interest Calculation
NORMAL INTEREST
Class-IV: 5% per annum
Other employees: 5.5% per annum
PENAL INTEREST
- Misutilisation / non-utilisation: double the normal rate.
- Non-compliance with prescribed formalities: 1.5 times the normal rate.
Apply only where the governing Government Order / rules prescribe these conditions.
Advance Recovery Control
Sanction amount
Date of drawal
Principal outstanding
Interest outstanding
Instalments prescribed
Instalments recovered
Balance instalments
Penal interest if applicable
Final recovery date
Retirement date
Adjustment of Government dues where legally permissible
| Month | Opening Balance | Principal | Interest | Total Recovery | Closing Balance | |
|---|---|---|---|---|---|---|
| ₹0 | ₹0 |
Can the advance be recovered before retirement?
- Estimated completion date
- Enter the drawal date
- Instalments possible before retirement
- Enter both dates
- Total recovery at the entered rate
- Enter monthly recovery
This is only a planning/reference calculation. Apply the governing service and financial rules.
Sanction Checklist for DDO
Sanctioning Authority – Verify Current Delegation
The competent authority depends on the applicable delegation of financial powers and the specific loan/advance. The historical training material contains older delegation arrangements; current delegation must be checked against the latest Government orders/instructions.
Seniority / priority register
Where an advance is subject to limited budget availability or seniority, applications should be maintained in a proper seniority / priority register. Older percentages or allocation ratios from the training material are not shown as current because they are not separately verified.
Surety Requirements
- Permanent Government servant
- Prescribed pay/service conditions
- Sufficient remaining service
- Not already a loanee/surety where prohibited
Surety requirements vary according to the applicable advance and Government Order. Verify the latest order before sanction.
Budget & Accounting
Major Head 7610 – Loans to Government Servants etc.
| Stage | Provision |
|---|---|
| Accounts 2024-25 | ₹26.88 crore |
| BE 2025-26 | ₹158.15 crore |
| RE 2025-26 | ₹108.65 crore |
| BE 2026-27 | ₹159.05 crore |
These are State Budget provisions under Major Head 7610 and are NOT individual employee loan entitlements or automatic sanction ceilings.
Budget Rules moduleRelated Treasury Procedure
Form A.P.T.C. 40 is used for employee loans and advances as prescribed, excluding GPF/APGLI where applicable.
Loans & Advances – Audit Checklist
- 1. Whether sanction was by competent authority.
- 2. Whether applicable GO was identified.
- 3. Whether latest amendments were considered.
- 4. Whether eligibility was established.
- 5. Whether budget provision was available.
- 6. Whether repayment capacity was assessed.
- 7. Whether agreement/security was obtained.
- 8. Whether mortgage was properly created where applicable.
- 9. Whether utilisation was verified.
- 10. Whether insurance requirement was complied with.
- 11. Whether recovery commenced on time.
- 12. Whether interest was correctly calculated.
- 13. Whether penal interest was recovered where applicable.
- 14. Whether outstanding balances are periodically reconciled.
- 15. Whether recovery is completed before retirement where required.
- 16. Whether final adjustment was made.
- 17. Whether watch register/loan register is maintained.
- 18. Whether accounting classification is correct.
- 19. Whether unutilised/misutilised amounts were dealt with according to rules.
- 20. Whether deceased employee cases were dealt with under applicable waiver/recovery orders.
Audit observations should always be based on the rule/order applicable to the specific transaction period.
Government Order Library – Loans & Advances
G.O.Ms.No.130
Finance (HR.VI-A&L-TA) · 01-07-2016
Loans and Advances – House Building Advance – Admissibility in Revised Pay Scales, 2015 – Recommendation of Tenth Pay Revision Commission – Accepted – Orders – Issued.
G.O.Ms.No.167
Finance (HR.VI-A&L-TA) · 20-09-2017
Loans and Advances – Admissibility in Revised Pay Scales, 2015 – Recommendation of Pay Revision Commission 2015 – Accepted – Orders – Issued.
G.O.(P) No.78
Finance (A&L) · 03-04-2006
Conveyance Advance – provisions referred to in the training material.
G.O.Ms.No.356
Finance & Planning · 18-10-1994
Second mortgage relating to House Building Advance / security arrangements.
G.O.Ms.No.315
Finance & Planning · 07-11-1984
Waiver / write-off of Government dues in death cases.
G.O.Ms.No.388
Finance & Planning · 27-11-1993
Waiver / write-off of Government dues in death cases.
G.O.Ms.No.167 (1999)
Finance & Planning · 04-10-1999
Waiver / write-off of Government dues in death cases. This 1999 order is distinct from G.O.Ms.No.167 dated 20-09-2017.
G.O.Ms.No.154
Finance · 09-11-2000
Waiver / write-off of Government dues in death cases.
G.O.Ms.No.1
Finance (PC-TA) · 17-01-2022
Revised Pay Scales, 2022 – comprehensive pay framework.
Whenever a Government Order PDF is uploaded into the repository with its number, year and department, the reference above and the GO references used across this page link to it automatically. Historical Government Orders are never removed.
Current / Latest Loans & Advances Updates
No Loans & Advances Government Order has been uploaded into the repository yet. Orders appear here as soon as they are published, and none is described as the latest order unless the repository establishes it.
Organisation-Specific Current Example – Not a Statewide Rule
APGENCO — Loans & Advances – Sanction of House Building Advance and House Building Repair Loan during Financial Year 2026-27 – Willingness called for – Reg. Date: 18-09-2026.
This is an organisation-specific APGENCO notice and must NOT be interpreted as a statewide revision of AP Government HBA ceilings. Source document not uploaded to this repository.
RPS-2022 and Loans & Advances
G.O.Ms.No.1, Finance (PC-TA), dated 17-01-2022 introduced the comprehensive RPS-2022 framework.
RPS-2022 revised the pay structure, but a loan ceiling is not automatically revised merely because the employee's Basic Pay changed.
- Loan-specific GO → controls the loan ceiling.
- RPS-2022 → determines the applicable pay framework where the loan order refers to pay.
- Later loan-specific GO → overrides an earlier ceiling where applicable.
Second Mortgage · Waiver / Death Cases
G.O.Ms.No.356
Finance & Planning · 18-10-1994
Second mortgage relating to House Building Advance / security arrangements.
G.O.Ms.No.315
Finance & Planning · 07-11-1984
Waiver / write-off of Government dues in death cases.
G.O.Ms.No.388
Finance & Planning · 27-11-1993
Waiver / write-off of Government dues in death cases.
G.O.Ms.No.167 (1999)
Finance & Planning · 04-10-1999
Waiver / write-off of Government dues in death cases. This 1999 order is distinct from G.O.Ms.No.167 dated 20-09-2017.
G.O.Ms.No.154
Finance · 09-11-2000
Waiver / write-off of Government dues in death cases.
G.O.Ms.No.167, Finance & Planning, dated 04-10-1999 (waiver in death cases) is a different order from G.O.Ms.No.167, Finance (HR.VI-A&L-TA), dated 20-09-2017 (loans and advances in RPS 2015).
Loans & Advances – Searchable Reference Table
15 records match the search and filters above.
| Loan / Advance | Category | Government Order | Pay framework | Eligibility | Ceiling | Interest | Recovery | Current status |
|---|---|---|---|---|---|---|---|---|
| House Building Advance | Interest-bearing | G.O.Ms.No.130 dated 01-07-2016 | RPS 2015 | Employees eligible under the governing Government Order, subject to budget and competent sanction | ₹10,00,000 to ₹20,00,000 by Basic Pay slab; AIS officers working in the State ₹25,00,000 | Class-IV 5% p.a.; others 5.50% p.a. | 240 principal + 60 interest | Current applicability to be confirmed from subsequent Government Orders |
| House Site Advance | Interest-bearing | G.O.Ms.No.130 dated 01-07-2016 | RPS 2015 | Purchase of house site as prescribed | ₹2,00,000 | Class-IV 5% p.a.; others 5.50% p.a. | 60 principal + 12 interest | Current applicability to be confirmed from subsequent Government Orders |
| Repairs / Extensions Advance | Interest-bearing | G.O.Ms.No.130 dated 01-07-2016 | RPS 2015 | Repairs, extensions or improvements to an owned house as prescribed | ₹4,00,000 | Class-IV 5% p.a.; others 5.50% p.a. | 75 principal + 15 interest | Current applicability to be confirmed from subsequent Government Orders |
| Motor Car Advance | Interest-bearing | G.O.Ms.No.167 dated 20-09-2017 | RPS 2015 | Employees drawing Basic Pay of ₹37,100 and above | ₹6,00,000 | Class-IV 5% p.a.; others 5.5% p.a. | 135 principal + 65 interest | Current applicability to be confirmed from subsequent Government Orders |
| Motor Cycle / Scooter Advance | Interest-bearing | G.O.Ms.No.167 dated 20-09-2017 | RPS 2015 | Employees drawing Basic Pay of ₹22,460 and above | ₹80,000 | Class-IV 5% p.a.; others 5.5% p.a. | 80 principal + 16 interest | Current applicability to be confirmed from subsequent Government Orders |
| Moped Advance | Interest-bearing | G.O.Ms.No.167 dated 20-09-2017 | RPS 2015 | Employees drawing Basic Pay of ₹16,400 and above; drivers with two years service as specified | ₹35,000 | Class-IV 5% p.a.; others 5.5% p.a. | 60 principal + 16 interest | Current applicability to be confirmed from subsequent Government Orders |
| Bicycle Advance | Interest-bearing | G.O.Ms.No.167 dated 20-09-2017 | RPS 2015 | Employees including Class-IV, subject to the conditions prescribed | ₹10,000 | Class-IV 5% p.a.; others 5.5% p.a. | 26 principal + 4 interest | Current applicability to be confirmed from subsequent Government Orders |
| Personal Computer Advance | Interest-bearing | G.O.Ms.No.167 dated 20-09-2017 | RPS 2015 | Employees drawing Basic Pay of ₹16,400 and above | ₹50,000 | Class-IV 5% p.a.; others 5.5% p.a. | 135 principal + 65 interest | Should not automatically be treated as the current 2026 ceiling |
| Marriage Advance | Interest-bearing | G.O.Ms.No.167 dated 20-09-2017 | RPS 2015 | Marriage of the employee, son or daughter as prescribed | ₹75,000 / ₹1,25,000 / ₹1,00,000 / ₹2,00,000 by purpose and category | Class-IV 5%; others 5.5% | 70 principal + 10 interest | Current applicability to be confirmed from subsequent Government Orders |
| Festival Advance | Non-interest-bearing / Other | G.O.Ms.No.167 dated 20-09-2017 | RPS 2015 | As prescribed in the Government Order | ₹7,500; Class-IV ₹5,000 as prescribed | Not interest-bearing as prescribed | 10 principal + — interest | Current applicability to be confirmed from subsequent Government Orders |
| Special Festival Advance – APCO Cloth | Non-interest-bearing / Other | G.O.Ms.No.167 dated 20-09-2017 | RPS 2015 | Gazetted / Non-Gazetted / Class-IV as prescribed | Gazetted ₹7,500; Non-Gazetted ₹6,000; Class-IV ₹4,500 | Not interest-bearing as prescribed | 10 principal + — interest | Current applicability to be confirmed from subsequent Government Orders |
| Educational Advance | Non-interest-bearing / Other | G.O.Ms.No.167 dated 20-09-2017 | RPS 2015 | Non-Gazetted employees and Class-IV as prescribed | ₹7,500 | Not interest-bearing as prescribed | 10 principal + — interest | Current applicability to be confirmed from subsequent Government Orders |
| Medical Advance | Non-interest-bearing / Other | Latest order not located in the available source set | To be identified from the governing order | Refer to latest applicable Government Order / Finance Department instructions | Not established in the available source set | Refer to the governing order | Refer to the governing order principal + — interest | Latest order not located in the available source set |
| Pay Advance | Non-interest-bearing / Other | Latest order not located in the available source set | To be identified from the governing order | Refer to latest applicable Government Order / Finance Department instructions | Not established in the available source set | Refer to the governing order | Refer to the governing order principal + — interest | Latest order not located in the available source set |
| Travelling Allowance (TA) Advance | Non-interest-bearing / Other | Latest order not located in the available source set | To be identified from the governing order | Refer to latest applicable Government Order / Finance Department instructions | Not established in the available source set | Refer to the governing order | Refer to the governing order principal + — interest | Latest order not located in the available source set |
Disclaimer
This website is intended as a practical reference for Andhra Pradesh Government employees, DDOs, Accounts Officers, Establishments and audit personnel. Government Orders, rules, ceilings, eligibility conditions, interest rates and delegation of powers may be amended from time to time. Before sanction, drawal or recovery of any loan or advance, the latest applicable Government Order, Finance Department instructions, delegation of powers and departmental orders should be verified. Where historical provisions are displayed, they are identified as historical/reference material and should not be treated as current entitlement without verification.