Kolkata: State govt employees can now access salary advances to meet emergency needs, including medical expenses, children’s education and unforeseen household expenditures, under a new scheme introduced by the finance department.A notification has been issued introducing West Bengal Salary Advance Scheme, which provides a digital platform for employees to avail themselves of short-term and multi-month salary advances. The initiative aims to offer institutional financial assistance and reduce dependence on high-interest loans from external sources. It will cover regular govt employees across Groups A to D and equivalent categories.The scheme has two components — short-term and multi-month advances. Under the short-term facility, employees can avail themselves of up to 50% of their monthly salary entitlement to meet urgent financial requirements. The amount must be repaid within the same or immediately succeeding salary cycle, subject to a maximum of 60 days, as specified in the memorandum of understanding (MoU) or platform terms. No interest, processing fee, platform fee or convenience fee will be charged if repayment is made within the stipulated period.A transaction fee of up to 1% may be imposed if delays in providing information are attributable to the employee. No additional charge will apply if the delay is caused by the govt department or drawing and disbursing officer (DDO).The multi-month facility is intended for larger, planned expenditures, allowing repayment in instalments over two to 60 months. The tenure cannot extend beyond the employee’s retirement date. The eligible amount will depend on the lender’s risk assessment and Reserve Bank of India guidelines. It may go up to 30 times monthly gross salary, with the monthly EMI capped at 50% of gross salary.Employees will receive advance statements detailing applicable interest rates and charges, in accordance with digital lending guidelines. Monthly instalments will be deducted directly from salaries after obtaining digital consent. Outstanding dues may also be adjusted against final settlement benefits in case of resignation or retirement.Separately, state govt has raised the financial ceiling for advances to purchase motorcycles, scooters and electric two-wheelers. Employees can now avail themselves of up to Rs 1.20 lakh. The sanctioned amount will be the lowest of three figures: Rs 1.20 lakh, five months’ basic salary or the anticipated purchase cost of the vehicle.
