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LOANS AVAILABLE TO UNIVERSITY STAFF

1. Distress Loan :

      Maximum Amount                : - 10 months salary (Basic salary). The maximum amount is limited to Rs.250,000.00 

     Interest Rate                            : - 4.2 % per annum

     No. of Installments                  : - 60

     Purpose                                    : - To settle a loan, to obtain medical treatment, to recover from natural disasters.

     Loan Application Procedure : - Duly completed loan application forms should be submitted to the Salaries and Loan division through the 

                                                           Academic/Non Academic Establishment Division with the recommendation of the Head of the Department.

     Eligibility                                 : - Permanent employees who have been confirmed in their post are eligible for this loan.

Employees on probation with continuous service but who have been previously confirmed in another post in the University service are also eligible

     Number of loans released per month : - Will be decided based on the availability of funds.

     Special Note                             : - The employee will be permitted to renew the loan after the repayment of 40 installments or after settling the

                                                            loan fully.

     Relevant Circular                 : - Finance Circular No: 2/2009

( http://www.ugc.ac.lk/en/policy/finance-circular-letters/69-2009/196-finance-circular-letter-no-22009.html )

2. Vehicle Loan :

      Maximum Amount Granted : -

Motor vehicle loan : - Rs.120,000.00

Motor bicycle loan : - Rs.50,000.00

Push bicycle loan : - Rs.6,000.00

     Interest Rate                            : - 4.2 % per annum

     No. of Installments                  : - 60

     Loan Application Procedure : - Duly completed loan application forms should be submitted to the Salaries and Loan division through the 

                                                           Academic/Non Academic Establishment Division with the recommendation of the Head of the Department.

     Eligibility : -

                              Permanent employees who have been confirmed in their post are eligible for this loan.

Employees on probation with continuous service but who have been previously confirmed in another post in the University service are also eligible

Those who are required by the university to maintain a vehicle for the performance of their official duties in terms of their letters of appointment or specific directions.

      Number of loans released per month by the division. (subject to availability of funds)

Motor Vehicle Loans – One Loan

Motor Bicycle Loan – One Loan

Bicycle Loan - All applications received to the finance division are considered.

       Relevant Circulars : -

             UGC Commission Circular No. 627

             UGC Commission Circular No 795

             UGC establishment Circular letter No.13/2006

        Special Note : - The loans are renewable 5 years after the date of the last.

3. Computer Loan :

    Maximum Amount                   : - Rs. 30,000.00

     Interest Rate                            : - 4.2 % per annum

     No. of Installments                  : - 60

     Loan Application Procedure : - Duly completed loan application forms should be submitted to the Salaries and Loan division through the 

                                                           Academic/Non Academic Establishment Division with the recommendation of the Head of the Department.

     Eligibility                                 : - Permanent employees who have been confirmed in their post are eligible for this loan.

Employees on probation with continuous service but who have been previously confirmed in another post in the University service are also eligible

     Number of loans released per month : - Will be decided based on the availability of funds.

     Relevant Circular                 : - UGC Commission circular No.783

4. Staff Loan :

      Maximum Amount                : - 10,200.00

     Interest Rate                            : - 4.2 % per annum

     No. of Installments                  : - 60

     Purpose                                    : - To settle a loan, medical bills, etc..

     Loan Application Procedure : - Duly completed loan application forms should be submitted to the Salaries and Loan division through the 

                                                           Academic/Non Academic Establishment Division with the recommendation of the Head of the Department.

     Eligibility                                 : - All permanent employees are eligible for this loan.

     Relevant Circular                 : - UGC Commission Circular 664

5. UPF Loan :

      Maximum Amount                : -

The amount equivalent to the 48 months salary of the contributor or an amount not exceeding 65% of the Provident Fund balance lying to the credit of the contributor, whichever is less. Monthly deductions (including other recoveries) should not exceed 60% of the salary.

Total value of liabilities viz; all the loans ( including provident fund loan ) , bonds , agreements & gurantees should not exceed 75% of the total UPF balance at any given time.

     Interest Rate                            : - No Interest.

     No. of Installments                  : - 120

     Purpose                                    : - To settle a loan, to obtain medical treatment, to recover from natural disasters.

     Loan Application Procedure : - Duly completed loan application forms should be submitted to the Salaries and Loan division through the 

                                                           Academic/Non Academic Establishment Division.

     Eligibility                                 : - All permanent employees who have been confirmed in their post are eligible for this loan.

     Number of loans released per month : - Will be decided based on the availability of funds.

     Special Note                             : - 

If the applicant refuses to accept the loan after funds are released by the UGC he/she will forfeit the right to get another loan for the next 12 months.

Universities must ensure that they submit their requests to the UGC on or before 15th of every month.

The applicant could settle the balance of the loan at any time he/she wishes.

Can be renewed only after a lapse of 12 installments from the date of last loan received.

      Relevant Circular                 : -

Commission Circular No.895

Commission Circular No 524

Finance circular letter No. 06/2007

 6. Property Loan :

      Maximum Amount                : -  Non–academic staff Grade officers & Academic staff Rs 2,000,000.00
                                                            Non-academic Staff Rs 1,000,000.00

     Interest Rate                            : -

Up to Rs 1,000,000.00 – 7%
Above Rs 1,000,000.00 to Rs 2,000,000.00 – 9%
The UGC will bear part of the interest rate up to a maximum of 5.5% of the loan until the total amount of the loan is recovered in full.

     No. of Installments                  : -

A maximum period of 15 years or where the employee is in the non–academic staff on completion of 60 years of age; Academic staff on completion of 65 years of age, whichever occurs first.

     Purpose                                    : -

Purchase of land, Purchase of a flat or land with a house, Construction of a house, Effecting improvements, Making additions to a house already constructed, Completion of work of a partially constructed house.

     Loan Application Procedure : -

The completed application form should be submitted to the finance division to enter the salary particulars and loan details and should be submitted to the Academic/Non-academic Establishment to enter employment details. Then the completed application should be forwarded to the bank.

After releasing the loan, the relevant bank will send the details of the released loan to the university and accordingly installments will be deducted from the salary and sent to the bank.

      Eligibility                                 : -

He/She should be an employee of a university /Higher Educational Institution.

Should be an employee confirmed in the post with minimum 5 years of service.

      Loans issuing banks               : -

Bank of Ceylon

People’s Bank

National Savings Bank

State Mortgage Bank

     Relevant Circular                 : -

 Finance.cir.letter No. 04/2012

Finance.cir.letter No. 11/2012 (04/2012http://www.ugc.ac.lk/en/policy/finance-circular-letters/100-2012/1114-fin-circular-112012-property-loan-scheme-for-staff-of-the-universitiesheis.html)

Finance.cir.letter No. 7/2014 (http://www.ugc.ac.lk/en/policy/finance-circular-letters/126-2014/1411-fin-circular-072014-property-loan-scheme-for-staff-of-the-universitieshigher-educational-institutions.html)