Computer Advance Interest Rate 2020-21 for Central Government Employees

Computer Advance for Central Government Employees – Rate of Interest 9.8%

7th Pay Commission Computer Advance with Rate of Interest

Generally, purchasing of computer or laptop on loan from banks or any other financial institution is slightly differs from Advance. Advance is granting to Government employees with minimum interest to purchase a personal computer. After the 7th pay commission, the maximum amount of advance for personal computers is fixed as Rs.50000.

F.No.5(3)-B(PD)/2019

Ministry of Finance

Department of Economic Affairs

(Budget Division)

Also read :Enhancement of Dress Allowance to the Postal staff-not approved by the Nodal Ministry

North Block, New Delhi

Dated the 16 March, 2020

Office Memorandum

Subject: Advances to Government Servants – Rate of interest for purchase of Computer during 2020-21.

Also read :Implementation of the recommendations of Seventh Central Pay Commission-Cash Handing and Treasury Allowance -Clarifications

The undersigned is directed to state that the rate of interest for advance sanctioned to the Government servants for purchase of Computer during 2020-21 i.e. from 1st April, 2020 to 31st March 2021 is as under:

Advance for purchase of Computer: Rate of interest per annum – 9.8%

sd/-

(Arup Shyam Chawdhury)

Under Secretary (Budget)

Interest Free are given below after 7th Pay Commission

• Advance of Travelling Advance on Tour/Transfer
• Advance of Leave Travel Concession
• Advance of Medical Treatment

Interest bearing Advances are given below after 7th Pay Commission

• Personal Computer Advance
• House Building Advance

Rate of Interest for Advances

How to Calculate Interest for Personal Computer Advance

The formula for calculating the interest amount for personal computer advance is  N/2 (A+1) x R/100 x 1/12

If an employee received Rs.30,000 as Computer Advance and he paid Rs. 500 per month with 60 installments:

61/2 (30000) x9.8/100 x 1/12 = 7473

for Calculation of maximum of Rs.50000/- repaid Rs.500 per month with 100  installments

101/2 (50000) x9.8/100 x 1/12=20620

Just for Info 

List of Abolished Advances after 7th Pay Commission

Government of India decision on 7th CPC recommendations on Advances to Central Government employees

• Bicycle Advance – Abolished
• Warm Clothing Advance – Abolished
• Advance of Pay on Transfer – Abolished
• Festival Advance – Abolished
• Natural Calamity Advance – Abolished
• Advance of Leave Salary – Abolished
• Advance for Law Suits – Abolished