The Government of India has introduced the Special Festival Advance Scheme, which provides eligible Central Government employees with an interest-free loan of Rs 10,000. Launched by Finance Minister Nirmala Sitharaman, this scheme aims to help employees celebrate festivals cheerfully, especially in light of the economic challenges posed by the COVID-19 pandemic. This article will guide you through the details, including eligibility, required documents, and the application process for this significant financial aid.
The Special Festival Advance Scheme enables Central Government employees to avail themselves of a one-time interest-free loan, recoverable in up to 10 installments. Read on to find out how you can apply for this loan and benefit from this initiative.
Special Festival Advance Scheme Overview
This scheme has been reintroduced to assist Central Government employees, especially amid the financial strain many have faced due to the pandemic. Not only does it provide a loan for festivals, but it also aims to lift the spirits of employees during this festive season.
“The Special Festival Advance Scheme is a one-time measure allowing all Central Government employees to receive an interest-free advance of Rs. 10,000, to be repaid in a maximum of 10 installments,” stated Finance Minister Nirmala Sitharaman.
Purpose of the Special Festival Advance Scheme
The main aim of this scheme is to stimulate demand in the economy by aiding Central Government employees during the festive period. Alongside cash advances, the government will also provide cash vouchers for employees to utilize for purchasing goods, which must be GST-registered and non-food items priced with a GST of 12% or more.
This initiative is designed to encourage employees to make their purchases digitally from registered outlets, contributing to economic growth and recovery.
Key Details of the Special Festival Advance Scheme
| Name | Special Festival Advance Scheme |
| Launched by | Finance Minister Nirmala Sitharaman |
| Objective | Providing festival advances |
| Beneficiary | Central Government employees |
| Official site | – |
Features of the Special Festival Advance Scheme
- The advance scheme has been reinstated after being discontinued previously.
- This initiative will be effective until January 31, 2024.
- Eligible employees will receive an advance via a prepaid Rupay debit card.
- Repayment of the advance can occur in 10 installments.
- The budget allocated for this scheme stands at Rs 4,000 crore.
- Benefits under this scheme must be utilized before March 31, 2024.
- No interest will be charged on the received advance.
- The central government has also allocated a ₹12,000 crore interest-free loan for states to support capital projects.
Benefits of the Special Festival Advance Scheme
The Special Festival Advance Scheme offers several benefits for Central Government employees:
- An interest-free advance of ₹10,000, repayable in maximum 10 installments.
- The advance is provided via a prepaid Rupay debit card.
- All funds must be utilized by March 31, 2024.
- The government will allocate ₹4,000 crore for this advance scheme.
- In addition, if state governments participate, another ₹8,000 crore may be distributed.
- An estimated additional consumer demand of ₹8,000 crore is anticipated from this initiative.
Eligibility Criteria
To qualify for the Special Festival Advance Scheme, applicants must be active officers of the Central Government.
How to Apply for the Special Festival Advance Scheme
Follow these steps to apply for the Special Festival Advance Scheme:
- Visit the official website of the scheme.
- The homepage will appear on your screen.
- Click on the “Apply Now” option on the homepage.
- A new page will open where you need to fill in the required details.
- Upload all necessary documents as prompted.
- Submit your application by clicking on the submit button.
By following these steps, you can successfully apply for the Special Festival Advance Scheme and enjoy the benefits it offers.