Interest-free car loans for govt officials suspended indefinitely

The government has suspended interest-free loans for government officials to purchase vehicles and all foreign training funded by the state as part of efforts to cut operational costs. The suspension will remain in effect until further notice.

The decision was taken at the fourth cabinet meeting held on Thursday, April 2, chaired by Prime Minister Tarique Rahman at the Parliament Secretariat's cabinet room, according to a press release from the Cabinet Division.

The release also stated that internal training expenses must be reduced by 50 per cent, excluding training costs. Hospitality expenses for meetings and seminars must be cut by 50 per cent, seminar and conference expenses by 20 per cent, and travel expenses by 30 per cent.

Privileged government officials, those holding the rank of deputy secretary and above, can currently take interest-free loans of up to Tk 30 lakh to purchase vehicles under the 'Interest-Free Loan for Privileged Government Officials and Vehicle Service Monetisation Policy, 2020'.

Under the policy, officials receive not only the loan facility but also a monthly allowance of Tk 50,000 for vehicle maintenance and driver salaries. Additionally, a 10 per cent annual depreciation benefit applies to the vehicles.