Hr & Administration
Hr Professional
Hr Executive
Bhavana Hiwase
Hr Executive
+5 Others

Hi All,
We are a small real estate firm. Some of our employee wants Personal Loan. So we thought of providing them Interest free loans. Can someone help with how can i proceed with the same. I want a an Loan Agreement which can emphasis on the Re-payment.
Any help will be appreatiated.
20th May 2008 From India, Thana
Hi, I am enclosing herewith the Loan Policy with Form. This may be of helpful to you. Thank you. Satya Hyderabad
20th May 2008 From India, Hyderabad

Attached Files
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File Type: doc Loan Form.doc (37.0 KB, 10202 views)
File Type: doc Template - Loan Policy.doc (31.0 KB, 8496 views)

Hi Satya,
Thanks for the templates. One last thing which i wanted a help on is the Loan Agreement regarding the repayment. I guess the deduction cannot be more the 40% of the salary. can you provide help regarding Loan Re-Payment Agreement.
20th May 2008 From India, Thana
The repayment options are also addressed in the same loan policy.
The repayment can be in Equal Monthly instalments depending upon the employee capability of repaying the loan. As per policy if the repayment options are 6 or 12 or 24 months, the amount should be divided accordingly.
Hope I addressed your concern.
Thank you.
21st May 2008 From India, Hyderabad
We do have similar policy related to loan, we get this attched agreement signed by applicant once loan gets approved. see if useful to you. Rgds, Shilpi
21st May 2008 From India, New Delhi

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File Type: doc Loan Agr.doc (22.5 KB, 5371 views)

I would like to know if the Company’s loan policy is applicable for the Consultant working at sites who are on our payroll. Bhavana
21st November 2008 From Singapore
I am in process of making policies for various loans to our employee. Please provide me formate of policy and rules and regulation for giving loans to employee. naina
13th February 2010 From India, Mumbai
Hi Satya,
Thank you so much for the template of loan policy and form, this is what i was looking for :)
Also, if you can help me with the government policy / rules regarding the policy of employee beneficiary loans.
25th March 2010 From India, Mumbai
Hi Everybody,
I am Raviraj Ghadge, I am working with a small partnership firm. I am very glad to be one of the member where we get all the solutions for our queries and which helps us a lot.
Now I have one doubt that is if I avail a personal loan to one of my staff and also complete the paper work required for the loan and the employee leaves the organization without any intimation. What action can I take OR how will i recover the loan amount? What documents should i take from that staff for loan application? Please help me out for this.
Raviraj G.
15th May 2010 From India, Mumbai
Dear Akarparekh,
Your intention to provide interest free personal loans to employees. But please remember that you need to include the interest on the loan amount as declared by SBI as taxable income and deduct TDS appropriately.
Trust the matter is clear
14th December 2010 From India, Madras
Dear Raviraj,

We had faced problems while employees availed personal loans from financial institutions.

While the financial institutions approached us for discussing their proposal we made it clear that the company will only recover the loan amount to the extent the employee earns salary. However, if for any reason the employee does not earn salary, the company will not make upfront payment for the loan amount and recover it later from the employee.

Likewise if the employee leaves the organisation the company will only send an intimation to this effect to the financial institution and the company will not liable for recovering the balance loan amount from the employees full and final settlement. Intially these institutions refused to accept our conditions but we were firm and finally a letter to this effect was signed by me and handed over to the financial institution and the duplicate was acknowledged by them. Subsequently when the salary fell short of the EMI or when the employee left we merely wrote a letter to the financial institution for recovering the amount.

As regards Maheswari's query you cannot recover any dues from the Gratuity amount and dues to the extent of salary, leave encashment, LTA and Medical reimbursement expenses alone can be recovered.

Never entertain personal loans from company as this will be difficult for you defend your case when the employee leaves the organisation. It is also advisable not to recommend any personal loan amount employeewise statement to any financial institution as this will be a document binding on the company.

15th December 2010 From India, Madras
Thank you for your helpful hints. It's been a pleasure for a site of this nature having this opportunity where ideals are shared amongst pple and it does helps so much.
Once again thank you for this wonderful hints on staff loan policy.
7th September 2012 From Nigeria, Lagos
Dear members, If employee is taking persoanl loan from employer what documents one need to make and what precuations for repaymnet shall be taken Thanks in Advance
3rd November 2014 From India
i am mayur rana i live to surat my contact no 9687950950
17th July 2018 From India, Jalalpur
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