The Ministry of Public Administration has announced an increase in the distress loan limit for public servants from Rs. 250,000 to Rs. 400,000, effective from May 1, 2025.
The revision follows Budget 2025 proposals which raised the minimum basic salary of public officers. The loan amount will be based on the officer’s basic salary as per Public Administration Circular 10/2025, dated March 25, 2025.
Institutions have been instructed to issue loans within the new maximum limit while prioritizing applications appropriately. The circular was issued with the concurrence of the General Treasury.
