Navigating Employee Loans: How Do IT Companies Handle the Process?

Dear All,

I am working with a medium-level IT company as an HR Analyst. We are planning to process a loan for one of our employees. Since this is the first time we are experiencing this kind of situation, kindly let me know the formal employee loan procedure followed by IT companies.

Thanks and Regards,
Anu

Hi Anu,

- Loan agreement (where an employee signs off on stamped paper stating that he has taken a loan of Rs.X and would repay it within X months).
- Loan recovery (number of months).
- Tax implications (if subsidized or zero-interest rate).
- In the case of resignation before the loan tenure, repayment rules.

This is what I could think of. Any other points, friends?

Regards, K. Palaniappan