Dear All,
I am working in the representative office of a UK company. My general manager is planning to introduce a loan program for the short-term financing needs of our employees. Can I be advised on the watchouts, i.e., the maximum loan size, the interest rate, the repayment terms, and any tax implications for employers/employees?
It would be great if I could be provided with the relevant rules for my self-studies.
Best regards,
Sanjay
From Hong Kong, Kowloon
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I am working in the representative office of a UK company. My general manager is planning to introduce a loan program for the short-term financing needs of our employees. Can I be advised on the watchouts, i.e., the maximum loan size, the interest rate, the repayment terms, and any tax implications for employers/employees?
It would be great if I could be provided with the relevant rules for my self-studies.
Best regards,
Sanjay
From Hong Kong, Kowloon
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In our company, we call this loan an emergency loan. In order to avail it, the case must be of an emergency nature. For example, it must be due to a calamity, hospitalization not covered by our health insurance, or education. The interest rate differs per rank, as the take-home pay of supervisors differs from that of team members/rank and file employees. Our interest rate is what they call diminishing, and the loan can be paid for a maximum of 6 months.
Hope I've helped somehow.
Carmie
From Philippines
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Hope I've helped somehow.
Carmie
From Philippines
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Hello Carmie,
First, I would like to thank you for sharing. Should the loans be restricted to specific uses such as medical and education? It is challenging to verify how employees use the money since no credit assessment is conducted for the applicants/employees. We are offering interest-free revolving loans, with the maximum loan capped at six months of the basic salary. Do you foresee any compliance issues concerning labor laws or other relevant legitimate requirements?
Best Regards,
Sanjay
From Hong Kong, Kowloon
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First, I would like to thank you for sharing. Should the loans be restricted to specific uses such as medical and education? It is challenging to verify how employees use the money since no credit assessment is conducted for the applicants/employees. We are offering interest-free revolving loans, with the maximum loan capped at six months of the basic salary. Do you foresee any compliance issues concerning labor laws or other relevant legitimate requirements?
Best Regards,
Sanjay
From Hong Kong, Kowloon
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