Organizational Development & Performance
Senthil Raj
Officer In University
Cheif Operations Officer

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Hi Friends Can u pl help me out in framing a loan policy. Mine is a Advocate Firm. Kindly post it ASAP. It is very URGENT. Regards, Shiela Shetty :D
From Qatar, Doha
dear sheila ,

Nice to see your post.

1. Decide for what account, the loan will be provided. For example, to purchase two wheeler, four wheeler, computer, festival purpose, cloth, house hold articles, marriage, house building, children education, etc.

2. Decide which category of staff are eligible for loan and what kind of loan. This depends the salary being paid to them and volume of loan amount. For example, two wheeler loan can be paid to all staff i.e, /Senior junior advocates , computer personnel, administrative staff, and support staff of your firm. ( i believe maximum you will be having only these kind of staff). But four wheeler loan cannot be paid to all.

3. Decide the loan amount. once again you need to categorise staff position. For example...marriage loan can be given to all...however the amount may be varied depending upon the remuneration they get... and repaying capacity.

4. You need to deduct all the loan from the salary.

5. You have to think twice, while framing the policy, how long each and every staff will be working with you.

6. You should allocate separate budget provision towards loan and every year it has to be increased depnding upon the usage.

What i have given above is just only a brief, yet i am sure you can enlarge to maximum extent to suit your requirements.

If you have more queries, let me know with the details about how many staff working, categories.


senthil raj

From Costa Rica, San José
Dear Shiela

Before drafting any policy please decide on the following things

1. Objective : What is the objective of implementing or adopting a loan policy in a company.

2. How much capital a company can afford towards this policy.

3. Who will be eligible under this policy e.g regular / confirmed / confirmed with three or more years of service.

4. Criteria to decide sanction of loan amount.

5. Documents required for processing / justifying the need of loan.

6. Period of recovery.

7.Interest burden and sharing of interest component by employee and employer.

8. Mode of recovery.

9. Hypothication / pledging of any securities by employee against loan amount.

10. Who will be deciding authority on loan application.

11. Time frame for disposal of loan application.

12. Provisions for prepayment of loan amount by employee or recovery of loan amount prior to end period by employer from employee.

13. Entitlement for availing another loan after complete payment of previous loan.

14. Provisions / restriction for availing one or more types of loan.

15.Documents / agreements to be entered by employee with company.

16. Forms of loan application and disbursement.

17. Conditions under which the policy can be withdrawn.

18. Procedure for amending the policy.

19. Procedure for settling the disputes.

20. Authorities to settle grivances.

I believe if you think on the above lines keeping in mind your company's setup , you will be the best judge to draft and implement the policy. I hope you will declare the policy drafted by you after its finalisation for the knowledge of all members.


Anil Anand

From India, New Delhi
Dear Mr. Anil,
Please help me in this regard.
I am working in a France based company . My company wants to provide different types of loan/ advance to the employees.
I have prepared a policy & Procedure for that.
But my cofusion is in How to prepare the Surety bond and the application form.
please suggest me other wise if you have any format for this pals send me in my EMail ID.
This is very urgent
Thanks & Regards
Swayangprava Dash
Ph 0674-2572002

From India, Bhubaneswar
Hi Swayangprava Dash Cedric (New User) here, do you know where i can find Employee Loan agreement Templates which includes payroll permission. Thanks Cedric
From South Africa, Johannesburg
Dear Mr. Anil, Please share sample of Loan Application Form with me also as i am also trying to prepare Loan Application form for my employees. Thanks in advance. Regards, Sunita
From India, Gurgaon
Dear Folks,
Please post some of your ideas then people here will assist you guys. Just dnt ask for help without doing any groundwork. atleast start something and tell us this is what we could do and this is what we want to..... then we shall assist you guys..
Take Care

From United Arab Emirates, Abu Dhabi
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