LOANS SCHEMES OF AGIF (SERVICE PERSONNEL)
1. Conveyance Advance Scheme. Conveyance advance is given to officers for
purchase of four/two wheeler and to JCOs/OR for purchase of two wheeler. The loan
scheme has been improved upon over the years. At present loan being disbursed for new
car is 90 percent of the cost of Car or 5 Lakh ( whichever is less) For two wheeler, the loan
amount is Rs 45,000/- or 90 percent of the cost (whichever is less) to both the Officers and
JC0s/OR. The interest rate charged is 9.5 per cent at monthly rest.
Note: With effect from 01 Apr 2011 Car advance for purchase of new car/second hand car
upto 1300cc, has been extended to JCOs of Regular Army with 15 years of service or
2. Conveyance Advance Linked Group Life Insurance Scheme. All members
availing conveyance advance are compulsorily insured under the Conveyance Advance
Linked Group Life Insurance Scheme where, in case of death of loanee, NOK is not
required to repay the outstanding loan amount. Under this scheme, loanee has to pay
onetime non refundable premium at the time of taking the loan.
3. Housing Building Advance (HBA). AGIF gives House Building Advance directly
to member’s upto Rs 35 Lac wef 01 Apr 2011 or 85 % of the actual cost whichever is less. It
is for the purchase of an already build house/construction of new house. Second time HBA
from AGIF will be charged one per cent additional rate of interest over and above the
prevailing rate of interest. Third time HBA will not be allowed. Housing loans for repair and
renovation or addition and alteration upto a maximum of Rs 5 lac for officers and 3 lac for
4. Personal Computer (PC) Advance Scheme. Maximum loan admissible is Rs
45,000/- or 90% of the cost of the computer, whichever is less. For advance granted with
effect from 01 Jan 2009, the applicable rate of interest is 9.5 % at monthly rest. Wef 01 Aug
2011, loan is required to be repaid in four years or 48 EMIs or six months before retirement.
Officers can apply for loan on commissioning, For JCOs/OR, minimum basic qualifying pay
as at present is Rs 11500/- (including 8P+GP-FMSP) to obtain computer loan. However in
case of APS personnel on deputation will have min service 4 years and pay Rs 11,500/-.
5. Final Withdrawal from Maturity Benefit. Officers and JCOs/OR can withdraw
upto 50 percent from AGIF Maturity Benefits, once, after completion of 15 years of physical
service, for education or. marriage of their wards. It must be understood that withdrawal
from maturity benefits in advance, will ultimately reduce the Maturity Amount receivable at
the time of Retirement/Release/Discharged from the Service. It is also pertinent to mention
that AGIF gives higher rate of interest on the Maturity amount, as compared to DSOP/AFPP
6. Sustenance Allowance to Differently Disabled Children of Army Personnel
who die in Harness. With effect from 27 Oct 2007, a corpus fund has been
established to give a sustenance allowance of Rs 2000/- per month to a differently disabled
child whose serving parent died on or after 27 Oct 2007 while in service in the Army. As per
the scheme details, the eligible child should be suffering from autistic spectrum disorders,
cerebral palsy, mental retardation or a combination of any two or more disabilities like
blindness, low vision, leprosy cured, hearing impairment, loco-motor disability or mental
illness. Eligibility conditions for the sustenance allowance are as follows :-
(a) The extent of disability must not be less than 40 percent of disability as
certified by a medical authority.
(b) The child must be unable to earn a living.
(c) The disability of the child should manifest itself before the death of the service
personnel while in service.
(d) The parent of the handicapped child should have died while on active service
on or after 27 Oct 2007.
(e) Following cases will not be eligible:-
(i) Handicapped children of serving members who have died prior to the
commencement of the scheme.
(ii) Retired personnel who have died leaving behind handicapped children.
(iii) Handicapped children of all serving and retired personnel.
7. Revised Sustenance Allowance Scheme. The existing sustenance allowance
scheme as implemented with effect from 27 Oct 2007 has been revised upward by Board of
Governors, with the monthly payment to beneficiary increased from Rs 2000/- (Rupees two
thousand only) to Rs 4000/- (Rupees four thousand only) per month per child of AGIF
members who died in harness (during service). The scheme has now been extended from
once child to two children of AGIF member who have died in harness on or after 27 Oct
2007, The revised sustenance allowance scheme will be effective from 01 Apr 2012 and will
be applicable to the existing beneficiaries also.