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FAQ

FREQUENTLY ASKED QUESTIONS on LOANS

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As soon as Principal amount is completely repaid, who has to calculate interest on the Advance?
Is the AG Office responsible for calculating interest on the Principal Amount?
Why is the Clearance Certificate not issued immediately after repayment of the last installment of interest?
Can the Clearance Certificate in respect of MCA be issued after the repayment of last installment of interest and after its accountal also?
Can the balance of interest due on Computer Advance be waived on the death of the Government servant as in the case of HBA, MCA etc
Can there be a gap between completion of repayment of principal and stating of the repayment of interest as some time is required for calculation of interest?
How will I know if there are any Missing Credits in relation to recovery of Principal and Interest?
How can I know the status of my Loan Account?

Who should approach the AG Office for issue of a Clearance Certificate?  

If I am a Gazetted Officer whose entitlements are maintained by the AG Office, then who is responsible for calculation of interest?
What do I do in the case of misclassification of HDFC credits?

 

        As soon as Principal amount is completely repaid, who has to calculate interest on the Advance?

        Is the AG Office responsible for calculating interest on the Principal Amount?

 

In the case of Non-Gazetted Government servants, the interest will have to be calculated by the drawing and disbursing officer.  The Loans sections in the AG Office are required to ensure the correctness of the amount of interest so calculated. (Art 213 of KTC, Vol I 1958)

 

In the case of Gazetted Officers, interest will be calculated in the Office of AG (A&E).

 

 

Why is the Clearance Certificate not issued immediately after repayment of the last installment of interest?

 

Only after ensuring the correct accounting of the transactions in the AG Office can the the Clarance Certificate be issued.  This means that that the accounting for the month in which repayment of last installment of interest is paid has to be completed before this Office can be in a position to issue the C.C.

 

 

Can the Clearance Certificate in respect of MCA be issued after the repayment of last installment of interest and after its accountal also?

 

This can be done if particulars of date of drawal, date of mortgage, and date of insurance of the vehicle are furnished.  Otherwise, C.C. cannot be issued.  This is because delay of more than a month between the date of drawal of advance and vehicle mortgage / insurance attracts heavy penal interest in case of MCA.

 

Can the balance of interest due on Computer Advance be waived on the death of the Government servant as in the case of HBA, MCA etc

 

No.  It cannot be waived in case of computer Advance.

 

Can there be a gap between completion of repayment of principal and stating of the repayment of interest as some time is required for calculation of interest?

 

No.  Immediately on the completion of principal, the interest repayment must be started otherwise penal interest will have to be paid for delayed payment of interest.

 

 

        How will I know if there are any Missing Credits in relation to recovery of Principal and Interest?

        How can I know the status of my Loan Account?

 

When accounts are closed at the end of March each year, Balances are communicated to Loanees for their information and acceptance.  Missing credits are also intimated so as to facilitate the furnishing of details by the Loanee.

 

 

Who should approach the AG Office for issue of a Clearance Certificate?

 

After recovery of both Principal and Interest, the Department is required to approach the AG Office for the issue of a Clearance Certificate.

 

 

If I am a Gazetted Officer whose entitlements are maintained by the AG Office, then who is responsible for calculation of interest?

 

 

In respect of those Gazetted Officers whose accounts we maintain, the AG Office is responsible for calculation of interest.

 

 

What do I do in the case of misclassification of HDFC credits?

 

In such cases, the sections dealing with the case will communicate the particulars to Loans I and Loans I will further advise the Treasury concerned to transfer the credits from HBA to HDFC.

 

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