Page 1 of 1 - Central Bureau of Investigation

When an advance is granted to an employee who is about toretire shortly the number of instalments shall be so adjusted as toensure full repayment of advance and interest before retirement ortermination of service.Amount of instalments: Each instalment shall be in wholerupees. However, the last instalment may be raised or reduced asmay be necessary for recovery of the balance including any fraction ofa rupee.Mode of recovery: The repayment instalments shall berecovered from the pay, leave salary or subsistence allowance,commencing with first such issue after the advance is drawn.Interest: Interest on advances will be charged at prescribedrates. Sanction for an advance shall indicate the interest rate 2.5%more than the prescribed rate with the stipulation that 2.5% rebatewill be allowed, on compliance with the terms relating to recovery ofamount.Calculation of interest: Interest may be calculated as perfollowing formulae :i) When the principal amount of advance is repaid in equalinstalmentsTotal interest= n(n+1)/2 * A * 1/12 * r/100ii)When a part of the advance is repaid in equal monthlyinstalments and the balance in lumpsumTotal interest= n/2 ( P +L) * 1/12 * r/100iii) When repayment is irregular, interest will be calculatedfor every month on diminishing balance. Alternatively, thebalance outstanding at the end of every month should beaggregated and then interest calculated as follows:Total interest = Aggregate of balancesoutstanding every months*1/12 * r/100Wheren= number of instalments including last instalment oflumpusum payment, if anyA= Amount of each instalmentr= Rate of interestPage 149 of 149