Loan against GPF: Govt curtails list of reasons

Our Correspondent

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Mandi Ahmedgarh, April 19

To bring down the number of employees applying for grant of refundable and non-refundable advance against the government provident fund (GPF), the state government has curtailed the list of purposes for which loan can be availed.

The step has been taken to protect the real principle behind the scheme, which is meant to secure the contributor’s life after retirement or phases of dire necessity.

Welcoming the move, office-bearers of trade unions and pensioners have urged the authorities that officials in the treasury offices should not be allowed to exploit and harass loan seekers on flimsy grounds.

Perusal of records revealed that the Finance Department had advised heads of all government departments that refundable and non-refundable loan against GPF should not be allowed as a matter of routine.

“Though there is a provision of availing advance against GPF under rules 13.14 and 13.29, the real purpose of creating fund is forfeited because according to annexure 1 of the rule, the fund is meant for subsistence of the employee after retirement or in case of dire need for him or his family during his service,” a communiqué addressed to the heads of various departments reads.

“The government has realised that in order to achieve the real rationale behind the scheme, the list of purposes for availing loan should be curtailed so that the number of applications can be reduced,” the communication states further.

While employees used to avail refundable and non-refundable loans against the GPF for a large number of reasons earlier, the department has restricted these purposes to dire need only.

Non-refundable loan can be availed for purchase of plot, built-up house and repairs or expansion thereof; marriage of children and treatment of self and a member of family of the employee.

In addition to above purposes, refundable loan against GPF can be availed for higher studies of children.

Appreciating the initiative taken by the government to rationalise the use of the facility, employees and pensioners led by Sukhcharanjit Singh Sharma and former president Government Teachers Union Baldev Singh Latala said the process of sanctioning and disbursal of loan should be made simple and officials at the treasury offices should not be allowed to exploit helplessness of the loan seekers.