IAFBA provides loans to personnel for personal utility and for improving the quality of life. These loans are provided on fulfilling following eligibility conditions.
  • Minimum qualifying service is 3 years except in case of airmen where minimum service is 3 years 6 months. AC / LAC who have not cleared CPE are not eligible.
  • For applicants having length of service between minimum qualifying service and 5 years, the quantum of loan and number of installments shall be half of otherwise entitled.
  • Minimum qualifying service is 5 years for availing full admissible amount of loan.
  • Re-employed Officers are not eligible.
Loan Type
SSC Officers
JWO & Above
Sgt & Below
Welfare Loan @ 9.5%

Processing time for Welfare Loan applications is 30 working days for first timers and 50 working days for second/third timers. This delay is due to large inflow of applications and limited funds available. Queries on the status of Welfare Loan applications will be entertained only after the expiry of the processing period.

Fresh loan will be sanctioned only after six months of cessation of previous loan. Additional/ Councurrent loan will be sanctioned only after six instalments of previous loan has been deducted.

  • Sanction of Welfare and Education Loan Simultaneously

Sanction of education and welfare loan is delinked and both can be availed simultaneously subject to repaying capacity. The education loan can also be availed simultaneously for a maximum of two children, subject to repayment capacity.

  • Frequently Asked Questions
Q. What are the reasons for which Welfare loan can be availed?
A. The loan is provided to meet such financial commitments which are not available through AFGIS or any other AF agencies. The loan would be admissible to the eligible members for the following purpose :-
(a)Housing and Allied activities for which IT benefits under section 80 and 24 of IT Act are not availed viz.
      (i) Repair/Renovation/Addition/Alteration of Ancestral House.
      (ii) Purchase of house site.
      (iii) Cost of Registration of Dwelling unit.
      (iv) Purchase of Farm Land/Farm House.
(b) Meeting expenses on illness of self and dependents which are not reimbursable through public fund. A certificate from the medical officer to this effect is to be attached.
(c) Domestic and religious obligation. The details with the estimated expenditure are to be attached.
(d) Any other purpose that contributes towards enhancement of quality of life. (Reasons in brief with documents to be furnished).
(e) Purchase of computer and accessories.


Q. What are the documents which are to be attached with the application Form?
A. The following documents are to be attached with the application and same to be filled in all respects.

1. Declaration
2. Letter of Authorisation to AOC, AFCAO/PD AFGIS / PD AV
3. Promissory Note
4. Agreement Form. Page No. 7 (Agreement) is a sample only. It is to be reproduced on a Non-judicial Stamp Paper of ` 100/-. Adjutant has to be the First Witness. Each page of the agreement is to be signed by the applicant at the bottom of the page.
5. Latest self attested e-pay slip (F 1517 for Officers / F 1523 for Airmen / NCs(E)).
6.Relevant documents as proof of the financial commitments for which loan is sought.
7.Application is to be forwarded to IAFBA under a covering letter from applicant's unit by Adjt / Asst Adjt .
8. Mandatory to attach cancelled cheque having IFSC Details/First page of Bank Pass Book having IFSC details/ Certificate from Bank Manager having IFSC details.

Q. What are the things to understand before the Application Form is submitted?
A. Following should be ascertained before submitting the application form:-

1. Total deduction including anticipated EMI of the loan applied can not exceed 80% of the Gross Emoluments.
2.  Purpose for which the loan is applied with brief details and supporting documents/estimated expenditure duly signed by the borrower is to be attached.
3.  Application is to be pre-receipted by the applicant on `1 revenue stamp at page no. 8.
4.  The application is required to be recommended by AOC / Stn Cdr on page numbers 5, 6 and 8. In respect of Air Warriors posted at Air HQ, the application is required to be recommended by their respective Director / Superior Officer.
5.  The processing fees of ` 200/- would be deducted from the sanctioned loan amount itself.
6.  Fresh loan will be sanctioned only 06 months after liquidation of previous loan if any, as reflected in (F) 1517 / 1523.
7. Concurrent loan is admissible up to the maximum specified limit of loan.
8.  EMI commences from the month in which the loan amount is released by IAFBA.
9.  Income of spouse or other private incomes are not to be included for determination of repaying capacity.
10.  Payment of Loans is through NEFT / RTGS only.



Q. What do I do if I no longer want the loan I applied for ?
A.If you decide not to avail the loan, before the amount has been transferred to your account, you can inform us through an application that the loan is not required. But if the amount has already been transferred, you will be required to pay interest for the period.


Q. How can I pay back my balance loan in one lumpsum ?
A. You can pay through a Demand Draft in the name of IAFBA payable at New Delhi. You can also make payment through RTGS / NEFT. Bank details for the same are given in “CONTACT US” link at the Home Page. It is mandatory to fill and send “Form for Partial Payment / Final Settlement of IAFBA Loan”, available in the “DOWNLOAD FORMS” link at the Home Page. It is to be noted that no penalty is charged by this office for early cessation of loan.


Q. Can I make partial payment and How?
A. Partial repayment of loan is made in the same way as a final repayment. You have to specify in the form that the paid amount pertains to partial refund of loan. Your EMI will be re-fixed and will be effective from the following month.