LOANS & ADVANCES

1. INTEREST- FREE ADVANCES

2. INTEREST- BEARING ADVANCES

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 INTEREST-FREE ADVANCES
1. PAY ADVANCE
2. T.A. ON TRANSFER
3. T.A. ON TOUR
4. T.A. ADVANCE ON RETIREMENT(journey in L.P.R.
only)
5. L.T.C. ADVANCE
6. FESTIVAL ADVANCE
7. NATURAL CALAMITIES
8. LEAVE SALARY ADVANCE
9. IMMEDIATE RELIEF
10. TRAINING IN HINDI CORR.COURSE FOR PROBODH,
PRAVEEN
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INTEREST-BEARING ADVANCES
1. CYCLE ADVANCE(No interest from 7.10.08)
2. FAN ADVANCE ( Removed from 7.10.08)
3. WARM CLOTHING ADVANCE
4. TYPEWRITER ADVANCE
5. MOTOR CAR ADVANCE
6. MOTOR CYCLE/SCOOTER ADVANCE
7. PERSONAL COMPUTER ADVANCE
8. HOUSE BUILDING ADVANCE
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 SHORT-TERM ADVANCES
 ALL ADVANCES UNDER THE CATEGORY
OF INTEREST-FREE ADVANCES and
 CYCLE ADVANCE
 FAN ADVANCE
 WARM CLOTHING ADVANCE
 TYPEWRITER ADVANCE

(short term advance is defined the one in which the

recovery is made in less than 60 installments)
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 LONG TERM ADVANCES
 LONG TERM ADVANCE MEANS THE
ADVANCES OF WHICH THE RECOVERY
WILL BE MAXIMUM OF MORE THAN 60
INSTALMENTS
 MOTOR CAR
 MOTOR CYCLE/SCOOTER
 HOUSE BUILDING
 COMPUTER
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 SANCTIONING AUTHORITY
• ALL SHORT TERM ADVANCES : H.O.
• SHORT TERM ADVANCES TO HO:
SUPERIER OFFICER OR H.O.D.
************
 LONG TERM ADVANCES : H.O.D.
 LONG TERM ADVANCES TO H.O.D. :
SUPERIER OFFICER OR SECRRETARY

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 Other Conditions
 Surety in form GFR-21 (GFR-181)
 Definition of Pay: Basic pay+GP+NPA (Rule 11)
 Rounding off : Nearest 50 rupees[GFR-7)]
 Installments: In whole rupees (GFRule 8)
 Interest rate applicable on the date of drawl of advance
(GFR.26)
 Rate if int. where advance paid in installments
 No interest beyond the date of death (GID 1 Under 6))
 Recovery of interest commence immediately(GFR.24)
 Levy of penal interest for int.free loans[GFR 2(2)]
8 JuneP.I.
2019 For interest bearing loan{GFR-2(1))}
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 Interest calculation
A. Principal repaid in equal instalments from month to month
I= N(N+1) x ( X) x ( R)
2 12 100
B. Portion of the principal paid in equal instalments & the balance
paid in lump sum
I= N (A+L) x ( R) x 1
2 100 12
C. Repayment is not regular: Balance o/s on the last day of each month
should be added & then total int.bearing balance x 1 x R
12 100
N=No.of instalments including last inst. of lump sum Payment; A=
Amount of principal; X= amount of each instalment, R=rate of
interest, L=last balance for which interest is due

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 INTEREST CALCULATION- AN EXAMPLE
1. KIND OF ADVANCE : SCOOTER
2. DATE OF DRAWAL : 15-06-2003, Amount 30000/-
3. RECOVERY @ RS. 10,000 P.M.
4. FIRST RECOVERY : FROM THE SALARY OF 6/2003
5. INTEREST RATE: 8%
6. CALCULATE INTEREST USING FORMULA & BALANCE METHOD
a) USING FORMULA : N(N+1) x (X) x (R)
2 12 100=3(3+1)10,000 X 8
2 12 100 =400/-
b) USING BALANCE METHOD:
.06.03 30,000
07.03 10,000 20,000
= 60,000 x 8
08.03 10,000 10,000 12 100 =400/-
09.03 10,000 NIL
TOTAL 60,000
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