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University Grants Commission - Sri Lanka

Commission Circular No: 600

18th March, 1994.

 

 

Vice-Chancellors of Universities,
Directors of Institutes.
Directors of Affliated University Colleges

PAYMENT OF LOANS FROM THE UNIVERSITIES PROVIDENT FUND


The University Grants Commission at its 406th meeting held on 11th February 1994 decided to relax the Provident Fund Loan regulations in order to allow the employees to get the maximum benefit of the salary increase according to Commission Circular No.579. Loans will be paid subject to the following conditions.


1. (i) Amount equivalent to 24 months salary of the contributor or
(iii) An amount not exceeding 75% of the Provident Fund balance lying to the credit of the contributor; whichever is less.
(In any case, the requested loan should not exceed the total Provident Fund balance shown in the
last issued Provident Fund Statement.)
(iii) Monthly deductions (including other loan recoveries) should not exceed 60% of the salary.

It will be the responsibility of the Higher Educational Institution to determine the quantum of the loan, subject to the above conditions.
2. Those who have obtained Provident Fund loans earlier and have not settled the loans in full are also eligible to get the maximum benefit under this circular. They are required to settle the previous Provident Fund loan balance out of this loan, and are eligible to receive only the balance. However those who have obtained a Provident Fund Loan under Circular No.524 after receiving the full benefit of the salary revision are not eligible to re apply in terms of this Circular.
3. Those employees who are unable to obtain the maximum Provident Fund Loan within the 60% deduction limit, due to other loan commitments, are also given the option to settle the other loans (such as Transport, Distress, Staff loan etc.) out of the Provident Fund loan. (This procedure will be detrimental to the employees in the long run).
4. An employee who obtains a Provident Fund loan in terms of this Circular is not eligible to receive another loan under this scheme, until this loan is fully recovered or for a period of 12 years whichever occurs later.
5. This loan is recoverable in 144 installments.
6. Requests for fresh loans from Higher Educational Institutions may be forwarded as in the past. In the case of applications from those who have already taken the ProvidentFund loan, the annexed form should be used.
7. In respect of those employees who have already obtained Provident Fund loans, and for whom loans are requested under this circular, all the Provident Fund contributions and loan recoveries should have been sent to the UGC up to the end of the month preceding the month in which such loan requests are submitted. No funds will be released for loans unless the above requirements have been strictly complied with.
8. Higher Educational Institutions should ensure that every applicant's Provident Fund Number, Name and the balance tally with the annual Provident Fund Statement issued by the University Grants Commission. Discrepencies if any, should be reported to the Commission, and loan applications should be submitted only after getting them rectified.
9. If the applicant refuses to accept the loan after funds are released by the University Grants Commission, he or she will forfeit the right to get another loan for the next 12 years. Special attention should be paid to this at the time of deciding the quantum of loans and requesting for funds, and it is very essential to bring this to the attention of all employees.
10. All the other conditions governing the Provident Fund loans as stated in previous circulars,shall remain unchanged.



The Financial Controller of the University Grants Commission may be contacted for further clarifications, if necessary. It is inportant that the contents of this circular are brought to the attention of all employees of your institution.



( mrs c.s karunaratna - secretary )

Cc:

  • Chairman/UGC
  • Vice-Chairman/UGC
  • Members of the UGC
  • Secretary/UGC
  • Deans of Faculties
  • Registrars of Universites
  • Financial Controller/UGC
  • Bursars of Universities
  • Librarians/SAL/AL of the Higher Educational Institutions/Institutes;
  • Snr. Asst.Registrars/Asst.Registrars of HEIs/Campuses
  • Snr. Asst.Bursars/Asst.Bursars of HEIs/Campuses
  • Chief Internal Auditor/UGC
  • Govt. Audit Superintendents of Universities
  • Snr. Asst.Int. Auditors/Asst.Int.Auditors of HEIs
  • Secretary/FUTA
  • Secretary/UEOA
  • Secretary/IUTUF
  • Secretary/AVVSMS
  • Secretary/AVVJSSVSS
  • Auditor-General
 

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