INTEREST FREE

LOANS FOR PERSONNEL Calculate EMI
IAFBA provides loans to personnel for personal utility and for improving the quality of life. These loans are provided, on fulfilling certain eligibility conditions. -
Interest Free Loan
Interest free loans upto maximum limits given below are admissible to serving members officers,airmen and NCs(E) provided their DSOPF/AFPPF balance has been brought down to the minimum required under Deposit Link Insurance Scheme.
Loan is admissible maximum twice in service career of a member . Second loan will be sanctioned after 3 years period from date of recovery of last installment of 1st loan. Loan is not admissible to retired AF personnel.
Loan Type Officers SSC Officers Airmen NC(E)s
Interest free loan 1,00,000/- 1,00,000/- 1,00,000/- 1,00,000/-
The Annexure to Appendix 'D' to AFO 10/13 should be forwarded.
Eligibility Condition
Purpose Requirement
Dependent Sister and Daughter marriage (i) Dependency certificate by the unit Adj that the applicant has a sister of marriageable age who is fully dependent on the applicant giving the name, age, date of birth alongwith POR number as per service documents, For sister's marriage, parents should also be dependent.
(ii) Proposed date of marriage.
(iii) Anticipated total expenditure.
(iv) Details of bridegroom, viz the name, his address, age, occupation, name and address of employer etc.
Repairs of House which is fully or partly owned by the applicant (i) A certificate from local Civil Authority(e.g. Municipality), Development authority, Corporation stating that the applicant is the owner, part owner, its location, address etc and that the house needs urgent and unavoidable repairs.
(ii) Estimated cost of repairs.
(iii) Members should have minimum 5 years of service.
Sickness of self and family(wife/children fully dependent parents and unmarried sisters dependent on the applicant (i) A medical certificate from SMO of Army of Air Force Hospital showing why the applicant or his dependent family member cannot be treated free through service source or service hospital.
(ii) Bills/Receipts to be produced.
To meet unavoidable legal expenses incurred by the applicant (i) Brief detail and causes for legal expenses.
(ii) Documentary proof of legal expenses.
Expenses due to unforeseen eventualities e.g. losses due to fire, theft, floods or other natural calamities (i) Evidence of losses and damages due to the unforeseen calamity to be attached from local authority , police report etc.
To meet the cost of treatment of retarded and under developed children of AF personnel (i) A certificate from SMO that the treatment is not admissible through service hospitals.
(ii) Estimated expenditure on treatment duly certified by SMO.
Payment and recovery of Loans
If a loan is approved , the cheque for loan will be forwarded to the unit of the officer, airmen or NC(E), In case of officers the cheque will be drawn in their names and in case of officers the cheque will be drawn in their names and in the case of airmen and NCs(E) the cheque will be drawn in favour of the SI fund of the unit.
Loan is recoverable in maximum of 30 monthly instalments. In case individual at time of sanctioning loan is left with lesser service, amount of recovery and instalments will be adjusted in such a way that loan is recovered before individual retire
Frequently Asked Questions
Q. What if a person wants to avail more loan amount due to any reason ?
A. First make the payment of the balance amount through cheque/DD and then the person will be eligible for another loan(Wel/Edu) after 90 days of liquidation of Interest Free Loan.
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