KP Govt Offers Interest-Free Loans for Employees, Housing

The Khyber Pakhtunkhwa (KP) government has introduced a relief package for its employees, offering interest-free loans for homes and vehicles. The scheme covers government staff from grade 1 to 17. According to an official notification, all loans will be repayable in easy monthly installments.

This year, the provincial government has allocated Rs340 million for the employee loan program. Out of this amount, Rs100 million is reserved for secretariat employees. The remaining Rs240 million will benefit other government workers across the province.

Under the scheme, employees can get Rs200,000 as an advance loan to purchase vehicles. Those building homes can receive up to Rs250,000. Officials stated that the initiative is designed to reduce financial pressure on employees and help improve their quality of life.

In a separate move earlier this year, KP also launched the “Ehsaas Apna Ghar Scheme.” It provides low-income families with interest-free loans to build, expand, or renovate their homes. A total of Rs4 billion has been allocated for this long-term housing program.

The Housing Department confirmed that eligible families can borrow up to Rs1.5 million, repayable over seven years. The monthly installment has been capped at Rs18,000. These initiatives aim to provide financial relief and housing stability for both employees and underprivileged families.