TN Conveyance Advance – Enhancement of monetary limit for purchase of motor cars and motorized two wheelers

Government of Tamil Nadu

Finance [Salaries] Department
G.O.Ms.No.27, Dated 20th January 2021
(Saarvari, Thai-7, Thiruvalluvar Aandu-2052)


Loans and Advances – Conveyance Advance – Enhancement of monetary limit for purchase of motor cars and motorized two wheelers – Revision of eligibility criteria – Orders Issued.


1. G.O.Ms.No.485, Finance (Salaries) Department, dated: 08.08.1996.
2. G.O.Ms.No.403, Finance (Salaries) Department, dated: 13.08.1998.
3. G.O.Ms.No.91, Finance (Salaries) Department, dated: 11.03.1999.
4. G.O.Ms.No.467, Finance (Salaries) Department, dated: 22.09.2009.



In the Government Order first, second, third and fourth read above, orders were issued fixing the quantum of advance for the purchase of conveyance and revising the eligibility criteria.

2. The Public (Special-B) department has requested the Finance department to study the feasibility of increasing the ceiling of the Motor Car Advance now being sanctioned to Government servants as one of the better methods of increasing the consumption in the economy.

3. The Government, after careful consideration has decided to enhance the quantum of advance for purchase of motor cars and motorized two wheelers. Accordingly Government direct that the quantum of advance for purchase of new motor car be enhanced as indicated below:

Levels of Pay of the Government EmployeeMaximum Amount
Level 28 and above (Pay Band 4 and
above) & All India Service Officers
Rs.14 lakhs
Level 21 to Level 27 (Pay Band 3) Rs.10 lakhs
Level 10 to Level 20 (Below Pay Band 3 till
Grade Pay of Rs.2,800/-)
Rs.6 lakhs

4. Government also order that in respect of motorized two-wheelers, the existing distinctions based on the capacity of the engine be hereby dispensed with and all regular Government employees in time scale of pay shall be eligible for a uniform maximum ceiling of Rs.1,00,000/- (Rupees one lakh only) for all categories of motorized two-wheelers

5. The revised norms will be subject to the following conditions:

a) If the actual value of the car or two wheeler purchased is below the ceilings prescribed above, the admissible advance will be restricted to the cost of the vehicle including taxes, registration and insurance.

b) As already done in the case of two-wheelers, no advance shall be given for the purchase of second hand motor cars.

c) The revised ceilings prescribed above are applicable for the year 2020-2021. For every subsequent year, the ceiling shall be automatically enhanced by 5% over the previous year.

d) The period of recovery of the advance and the other rules and regulations for sanction of conveyance advance shall remain unchanged.

6. Necessary amendment to Tamil Nadu Financial Code Volume-I will be issued separately.



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