Communication of Sanction

All financial sanctions and orders with regard to Long Term Advances to Government servant, issued by a competent authority are communicated to the Pr. Accountant General in accordance with the procedure laid down in the Odisha General Financial Rules Vol-I.

Recovery of Loans

• Loans and Advances paid to individual Government servant for the purpose of construction of House Building , Purchase of Motor Cars, Motor Cycles, Scooters, Moped and Computers are recovered from the salaries of the concerned employees in suitable instalments as specified in the sanction orders adhering the prescribed rules of the government.
• Repayment of above advances can also be made through Treasury challans deposit mentioning particulars of loan such as classification of loan, Type of loan, sub-type of loan, ID no i.e. GPF A/c No/ PRAN on the body of the challan.
• A Government servant may, however, if he/she so desires be permitted to repay the advance in a smaller number of instalment or he/she may pay more than one instalment at a time.
• The recovery of interest will commence from the month following that in which the whole of the principal has been repaid.
• As per Rule 209 of OGFR Vol-I any default in the payment of interest on a loan or advance or in the repayment of principal will be liable for imposition of penal rate of compound interest.
• In order to avoid the above penal interest, Finance Department, Government of Odisha has requested all Departments of Government vide circular No.-11774 dt. 20.03.1992 to effect recovery of interest at the same rate at which the principal has been recovered from the month following the one in which the last instalment of the advance was recovered.

Calculation of Interest

• Advances like HBA, MCA and Computer Advances granted under Odisha General Financial Rules shall carry simple interest from the date of advance at the rate prescribed for each year and the amount of interest being calculated on the balances outstanding on the last day of each month.
• No interest shall be charged on the amount of advance outstanding against a Government servant for recovery beyond the date of his/her retirement/death before retirement.
• Interest is calculated and intimated to DDOs and person concerned after verifying the individual status report of loanees after compilation of monthly accounts.