I am from Electrical Industry but we do not have such policy. Being ex-banker i feel that i will be in better position to reply your queries. I think that when you are providing personal loan facility there is no need to quote the reason i.e. for house renovation, family function, purchase of new vehicle etc. You three types of facilities can be classified as 1) Personal Loan-for family function, for House Renovation-UNSECURED FINANCE 2) Purchase of new vehicle-SECURED FINANCE. You might be thinking why two loans are classified as Secured & Unsecured but it is banking terminology and in ur case all two loans are secured as you are financing to your Permanent Employees only.
You may not insist for any type supporting documents for Personal Loan but i feel they are must for purchase of new vehicle. I think you should check whether the new vehicle is for the usage of employee himself or for his family member because i think that vehicle purchased with Company's finance should be for the usage of employee himself or for his/her family members. I don't know whether you are financing 100% or 70% of vehicle and that too with or without any type of interest on it. If your Company is financing with out interest then it must for you to check the usage of vehicle. It may be possible that employee is already having vehicle and buying new vehicle for the usage of his/her relative/friend from whom he may charge interest to create a new source of income. I think you should be vigilant while financing Personal Loan too. In Personal Loan you may fix a rule that it will be available only after completion of tenure only and not in between where employee closes his loan before stipulated tenure.
I am enclosing here with format of application for vehicle loan for your reference. You should obtain following listed documents before disbursement and after disbursement for vehicle loan.
1. Quotation of vehicle stating ex showroom price and on road price-before disbursement with application.
2. Advance if any paid by employee(if you are financing 100% of ex showroom price then necessary and if you are financing 100% of on road price then not required)-before disbursement with application
3. Copy of Registration Certificate of vehicle with Company's hypothetical charge-Post disbursement.
4. Cover note of insurance of vehicle with Company's hypothetical charge-Post disbursement.
I think you should obtain Hypothetical Agreement of vehicle which should be signed by both-employee and employer over and above your normal documents. Presently a m not having but i will provide you in due course of time.
A. Prakash