Manager Human Resource
Senthil Raj
Officer In University
Hr Manager
Hr Professional
It Consultant

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Dear All,
Can you help me understand the loans which can be availed to the employees? What about the Interest and deductions how it needs to be handled ? Is there a miniumum wage limit needs to be enforced during the deduction of loan principle and interest ?
Kindly clarify
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hello SK
You can note down followings:
1. House Building
2. Two wheeler
3. Four Wheeler
4. Computer
5. Festival
6. Children Education
7. Self education
8. Medical for major disease
9. Natural calamity
10. Attending conference/seminar in India/aborad
11. More heads can be thought of depending upon the local needs
Yes, the loan canbe disbursed based on the salary and repayin capacity. More than that every year budget allocation is very important.
senthil raj

Dear Senthil,
What is the eligibility to avail loan with reference to no of years working with company i mean how long association is requred to avail the benefit of loan?
Pls help me to get clear in this regard.
With thanks,
dear maha,
In the government and top corporate, they frame the clear cut policy with regard to eligibility based on the cadre, no. of year, salary, repaying capacity etc.
But in small organisation it is not clear.
Very important things to be noted are real need for the loan, no. of year worked, salary, repaying capacity.
For example, the house building loan for huge amount can be given to higher officials.
senthil raj
I think when the metter of years is come, it vary from company to company. Our compay provide small loans upto Rs 5000/- to trainees also. But in my opinion it should be limited to those employee who are permenent and have completed one year. am I right, seniors ? comments required
dear Ali you are right. The company and the employees will be safe, if it is limited to permanent employees wishes senthil raj
It depends on the company policy.
Preferably we need to know the importance of each request.
Cases Like natural calamity, salary advance for medical treatment, etc can be given to any employee, and for other loans like asset loan , house loan etc, we can fix up a eligibility criterion like above 2 years or more. ( This needs to be decided by the company).
This is also a means to retain an employee.
We have only 2 categories for loan disbursement
1. personal loan
2. education loan
the eligibility for a individual to apply is
personal - 6 mths of tenure in the org
loan provided is 2 times monthly salary payable in 10 mths
education - 1 yr tenure
the course/ training taken up should ideally be related to employees work. and the disbursement is based on the employee level in the organization and varies from 25K to 1 lac
there is a notional interest payable for any loans. pls check with the finance
Hi, Is there any law enforcement on the Loans given to employees ? What about the liablity if the employee left the company or he is being terminated? How do we recover the loan ? Regards SK
the loan disbursement should be by way of agreement where the agreement clearly stipulates the terms of repayment of the loan, the tenure and the procedure in the eventuality that the employee resigns.
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