State rolls out salary advance, low-interest loan scheme for four lakh govt employees

Raipur: Chhattisgarh has rolled out an earned salary advance and low-interest loan scheme for 4 lakh government employees, allowing early access to wages and cheaper credit. Implemented via the Refyne app, the initiative aims to ease financial stress and curb reliance on private lenders, with plans to expand into home and education loans.

The initiative, proposed by the Chhattisgarh Karmachari-Adhikari Federation (CKAF)—an umbrella body of over 100 government employees' associations—allows employees to withdraw a portion of their earned monthly salary as an interest-free advance before payday.

The scheme mirrors similar models implemented in Rajasthan, Goa and Assam. A few other states are preparing to roll out similar systems.

Employees can also avail low-interest loans for up to five years, with amounts linked to their salary levels. Plans are underway to expand the scheme to include home and education loans.

For loans, employees can access interest rates that are 1.5% to 2% lower than those offered by banks for personal loans, said CKAF state convenor Kamal Verma. "In the coming days, home loans and education loans will also be included in the scheme," he added.

The scheme aims to address urgent financial needs and reduce dependence on high-interest private lenders, as highlighted in CKAF's proposal submitted to Chief Minister Vishnu Deo Sai on January 23, 2025. Rishabh Parashar, speaking during the launch, emphasised its role in strengthening employees' financial stability.

Access to the scheme is available through the ‘Refyne' mobile app, which is integrated with the Karmik Sampada and e-Kosh portals. Employees must complete KYC using a selfie, PAN, address proof and video verification before applying for advances of up to 50% of their salary or short-term credit.

Director of treasury Padmini Bhoi Sahu and Sheetal Shashwat Verma said detailed guidelines and documentation requirements will soon be available on the finance department's website.