Template - Loan Policy

LOANS POLICY

1. Elig Eligib ibil ilit ity y for for Loan Loan 

All employees who have completed one year of service in the organization are eligible for an intere interest st free free loan loan subjec subjectt to availa availabi bilit lity y of funds. funds. Any kind kind of tax liabilit liability y applicable on the loan amount will be borne by the employee.

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The basic criterion for eligibility is a genuine verifiable purpose for which the employee has applied for a loan.

2. Eligi Eligibil bility ity amount amount and and repa repayme yment nt

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The maximum amount to be sanctioned as loan will be (current drawn) three months gross salary of the employee. Application Application for a higher amount will be subject to approval from the ice !resident. The sanction will depend on the sole discretion of the ice !resident.

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The loan will be repayable within 24 mont! in e"ual montly deductions from salary every every month. month. The The deduct deduction ion of instal installme lments nts from from salary salary will will start start from from the month month subse"uent to which the loan has been sanctioned.

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#f an employee wants to repay the balance amount in a single installment within $% months employee can inform &' about his intent and &' shall facilitate the repayment. The mode of payment will be only by che"ue.

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or mployees who have been in the organization for more than % years* loan re"uests higher than the eligibility have to be recommended by the 'eporting &ead and have to be approved by the &ead of inance + &ead of &' + ice ice !resident

#. Pro$edure

•

The applicant has to fill a loan application form (as per annexure).The duly filled

form is thereafter forwarded to &' department with respective department heads comments on it.

•

The &' ,epartment verifies the eligibility amount and forwards the application to

ice

!resident for approval. The sanction + rejection of loan is finally at the discretion of 

the

ice !resident.

•

After the loan is sanctioned* an advice is given by &' to inance to process the

 payment.

•

#f an mployee leaves the organisation before the repayment of the full loan amount*

the

employee is liable to pay the balance of the loan amount before being relieved.