KPK Interest-Free Loan Scheme 2026-27 for Government Employees | Full Details & Apply Process

The Government of Khyber Pakhtunkhwa (KPK) has announced the Interest-Free Loan Scheme (Bila Sood Qarza Scheme) for 2026-27 for provincial government employees. Under this welfare initiative, eligible government employees can apply for interest-free loans for Motorcars, House Building, Motorcycles, and Bicycles.

Below is the detailed guide covering eligibility criteria, loan limits, monthly deductions, and the complete application process.

Loan Categories, Limits & Repayment Details

The loan amount, monthly repayment deduction, installment duration, and eligibility criteria for each category are as follows

Loan Category	Eligible Cadre / Grade	Maximum Loan Limit	Monthly Deduction Rate	Required Eligibility Criteria
Motorcar Loan	BPS-17 & Above	Rs. 200,000/-	Rs. 3,334/- (60 Monthly Installments)	Minimum 5 years of service; age must not exceed 55 years
House Building Loan	BPS-1 to BPS-17	Rs. 250,000/-	Rs. 2,080/- (120 Monthly Installments)	Minimum 10 years of service; age must not exceed 50 years
Motorcycle Loan	BPS-1 to BPS-17	Rs. 80,000/-	Rs. 1,340/- (60 Monthly Installments)	Minimum 5 years of service; age must not exceed 55 years
Bicycle Loan	BPS-1 to BPS-17	Rs. 8,000/-	Rs. 200/- (40 Monthly Installments)	No specific age or service condition required

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Eligibility & Terms and Conditions

1. Selection Process: The allocation of interest-free loans among eligible applicants will be conducted strictly through a balloting (draw) system.

2. Single Category Application: An applicant can apply for only one loan category. Applications submitted for more than one category will be rejected.

3. DDO Certificate Required: Every application must include a certificate signed by the respective Drawing and Disbursing Officer (DDO) confirming that the applicant is not a defaulter of any previous loans.

Application Procedure (How to Apply)

• Civil Secretariat Employees: Employees serving in the Civil Secretariat and its subordinate offices must submit their application forms directly to the Benevolent Fund Section, Civil Secretariat.

• District-Level Employees: Provincial government employees posted in districts must submit their applications through their respective Deputy Commissioner (DC) offices.

• Attached Departments: Employees of attached departments must submit applications through their respective departmental/provincial head offices.

• Online Software Entry: The respective DC offices and department heads will enter the received applications into the official online portal at www.bfkp.org.

• Direct Submission Warning: The Provincial Benevolent Fund Board will not receive applications directly from individual employees.

Important Dates

• Last Date to Apply: The deadline for submitting applications through proper channels is December 10, 2026.

• Incomplete Applications: Incomplete forms or applications received after the deadline will not be entertained.