Sr. Manager Hr
Asst. Manager - Hr
Operations Executive(generalist)
Manisha Jangam
Hr Officer
Subrato Banerjee
Service, Manager- Hr

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Hi i wanted to know that whether all organisations help out thier employees by giving them advance for housing purpose?????????????
If yes what is the purpose of recovery ------- If the entire amount is deducted within a month ----Will it be considered as a loan?????
Is loan amount fixed on the basis of level ------- or is 2 times of ur basic pay???????? L:evel means Specific amnt fixed for managers, some other amnt fixed for senior manager etc
Plz help out
Thanx in advance

Every company has different criteria for loan and advance.
advance should be deducted from salary and it is always less than salary amount.
in case of loan it should be recovered in particular installments made by the company from employees salary.

Every Organisation have their own policy for payment of loan / adavances to the staff to meet the contingent situation. The factor considered to fix the amount of loan are as bellows
1) position of the staff.
2) Years of service.
3) If default or early leaving of service the measure of collection.
4) Maximum number of installment.
With above the loan limits are fixed for the various position with monthly deduction in installment.
Hope this will help you develop your loan policy
Thans & Regards
Amal Shere

Hi Khyat,
Does housing purpose mean housing loan...or miscelleaneuos/personnal loan..????
even in both the cases not all companies provide advance for loan
if the company is providing then the advance amount would be deducted from the monthly salary.
It will be calculated ur Basic, Hra & spl allowance if given

Instead of the Company giving the loan get the Nationalised banks do that. There are a lot of Banks like SBI, Andhra Bank , CitI Bank and others who are very keen to grant loan. However, please make sure that the Company is only liable to deduct the EMI from the concerned employee's salary and deposit the same to the Bank. If the employee leaves the Company before clearing the EMI you need to only inform the Bank. Have a written understanding with the Bank to avoid any hassle in the future.


Either you give an advance or a loan. The difference between the two are, an advance is an interest free amount which can be recovered in a pre-decided number of instalments.

A loan can either be interest free or a nominal interest (less than market rate) charged. This too can be recovered in a pre-decided number of instalments.

Most companies today give an advance to their new employees especially those who come from out station, to help them with the deposit required to take a house on rent. This is usually paid to the landlord directly and is recovered in equated monthly instalments.

The limits are specified by the organisation and it varies from each organisation.

This is not part of the ctc, but additional benefits enabling new employees to settle down without too much hassles.

Advances are usually given to tide over the immediate requirement for housing purposes etc. While as a loan can be for various purposes, such as for wedding, purchase a PC, 2/4 wheeler etc.

Hope the above helps

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