The state government of Goa has inked a pact with public sector lender, Bank of India so as to offer auto loans as much as Rs 5 lakh to employees of the state government.

The employees will now be able to avail auto loans at 11.5% per annum.

According to an order released by the government, "Motor Car Advance (MCA) to state government employees is at present met from the state budget allocation. However, due to constraint on resources, it has not been possible to provide adequate allocation to satisfy the demands of government employees towards MCA. The state government, therefore, negotiated with the Bank of India to advance loans to interested government employees for the purchase of a motor car."

"The advance for the purchase of the car will be repaid in full in monthly instalments by way of salary deduction within a period not exceeding 200 equal monthly installments. The recovery of the advance will commence from the month succeeding the month of disbursement of loan by the bank," the state government notification states.

"The advance for the purchase of the car will be repaid in full in monthly installments by way of salary deduction within a period not exceeding 200 equal monthly installments. The recovery of the advance will commence from the month succeeding the month of disbursement of loan by the bank, said the notice.