INDIAN AIR FORCE BENEVOLENT ASSOCIATION

This site has been hosted for the welfare of
serving and retired Air Force personnel and their families.
Loan for Personnel
LOANS FOR PERSONNEL
IAFBA provides loans to personnel for personal utility and for improving the quality of life. These loans are provided, on fulfilling certain eligibility conditions.
  • Educational Loan
  • Loan Type
    Officers
    SSC Officers
    Airmen
    NC(E)s
    Educational Loan @ 9%
    6,00,000/-
    --
    3,50,000/-
    2,50,000/-
  • Application form download        
  • Eligibility Conditions
  • (i) All regular Officers after the ab initio training are eligible to apply for loan. SSC Officers are not eligible.
    (ii) Re-employed Officers/Airmen are not eligible.
    (iii) Airmen after 2 years and NC(E) after completing 15 months of service are eligible for loan.
  • Additional Courses
  • (i) All post-graduation diploma/degree courses.
    (ii) All professional degree courses in field of medicine (all streams), engineering (all streams), CA, ICWA, CFA, Law etc.
    (iii) All degree courses of four years duration like hotel management, tourism, journalism, food technology, Marine and Merchant Navy etc.
    (iv) All integrated post graduation courses of 4 years or more duration.
    (v) Commercial pilot courses in India and abroad.
    (vi) Professional soft ware courses conducted by C DAC and NIIT.
    (vii) The loan will be granted for above degree/diploma courses provided the course and institute is recognized by UGC/concerned University or any Govt body authorized by Govt of India for this purpose. Foreign courses and institute must be recognized by concerned body of their country.
  • Frequently Asked Questions
  • Q. What are the reasons for which Education loan can be availed?
    A. This loan is provided to meet expenses on Education for wards of AF Personnel for professional and vocational courses. An attested copy of letter from institution indicating admission fee and other charges required to be deposited at the time of admission is to be attached with the application.


    Q. What are the documents which are to be attached with the application Form?
    A. The following documents are to be attached with the application and same to be filled in all respects. Each page of agreement is to be signed by the applicants at the bottom of the page.
    1.  (a) Declaration
         (b) Letter of Authorisation to AOC, AFCAO/PDAFGI
         (c) Promissory Note
         (d) Agreement Form
    2. Latest pay slip (F 1517 for Officers / F 1523 for Airmen) in original.
    3. Relevant documents in proof of the financial commitments for which loan is sought.
    4. Application should be forwarded to IAFBA under a covering letter from the applicant's unit.


    Q. What are the things to understand before the Application Form is submitted?
    A. 1.  Latest pay slip (F) 1517 / (F) 1523 in original is to be attached.
    2.  Total deduction including anticipated EMI of the loan applied can not exceed 80% of the Gross pay.
    3.  Purpose for the loan applied with brief details with supporting documents/estimated expenditure duly signed by the borrower is to be attached.
    4.  Application is pre-receipted by the applicant on Re.1 revenue stamp each in page no.11 and 12.
    5.  The processing fees of Rs.100/- would be deducted from the sanctioned loan itself.
    6.  Cheque / DD for processing fee is not required.
    7.  Fresh loan will be sanctioned only after 03 months after liquidation of outstanding loan if any, as reflected in (F) 1517 / 1523.
    8.  Concurrent loan is admissible up to the specified limit of loan.
    9.  EMI commences from the month in which the cheque is issued.
    10.  Income of spouse or other private income are not included for determination of repaying capacity.


    Q. What do I do if I no longer want the loan I applied for ?
    A. If you decide not to avail the loan before the cheque has been dispatched to you, You can inform us through an application that the loan is not required.
    But, if the Cheque has already been dispatched from this office, you will be required to pay interest for the months you keep the cheque. For example, if you pay back in the same month, you will still pay the interest for one month. You are requested not to send back the loan cheque.


    Q. What should I do if the loan cheque is lost?
    A. Please send us an indemnity bond and a fresh cheque will be sent to you. You are requested not to produce the earlier cheque to the bank if you find it later.


    Q. How can I pay back my balance loan in one lumpsum ?
    A. First you confirm your outstanding balance from this office telephonically or in person. You can pay through a local cheque or a DD in the name of IAFBA payable at New Delhi. Please send an application which bears your name and service no and the type of payment you are making (Final payment or Partial Payment). It is to be noted that no penalty amount is charged by this office for early cessation of loan.


    Q. Can I make partial payment and How?
    A. A partial payment is made in the same way as a final payment. You have to specify in your letter that amount pertains to partial refund. Your EMI will be re-fixed which will be effective from the following month.


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