I am working with IT firm as a HR Exe. In our organization, frequently employees are applying for personal loan. We want to overcome this problem and want implement some policy for the same.
Can anyone guide me for, employee loan eligibility in the organization.

From India, Mumbai

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Hi Rupali,
Good to see your post here.
The top management can make the application criteria more stringent. The loan amount could be lowered or the tenure of service needed to apply for the loan could be increased.

From India, Delhi
Dear Rupali
Good to see your post here.
You can make policy for Loan and can mention clause like employee (s) have completed 2 or 2.5 years service, employee (S) will eligible for one time in a year,loan amount should be more than two times of individuals take home salary and should be deducted within the year, other clause will be as per your managment decission.

From India, Ranchi
Hi Rupali,

I've drafted a policy for my company. Am sharing certain modules (one or two conditions) of the same which might help you in your company. You can further take it up for addition / correction / ammendment as per your companies criteria.

It might seem a little stringent but with problem like yours you can do so;


Coverage of Loan: The following are the types of Loans covered under this scheme:

Housing Loan / Home Loan.

Health / Hospitalization Loan.

Vehicle Loan.

Marriage Loan.

Loans not mentioned above will be placed before the Director for consideration.

Any type of tax liability pertaining to such loan will be borne by the employee.

Eligibility : All Permanent Employees of the Company who have completed 5 years of continuous service with the Company.

Various cases where the employees are not eligible for loan are:

Unprofessional conduct which is against the rule of the company

Verbal arguments leading to use of abusive language.

Continuous or frequent absenteeism without genuine reason.

Not respecting the management policy.


Employee can re-apply for Loan after 3 years from the date of complete repayment of his first loan.

Amount of Loan will not exceed 3 times of Employees per month Gross Salary or Rs.100000/- whichever is lower.

Hope these conditions might serve your purpose.

From India, Ahmedabad

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