A loan issued by an insurance company that uses the cash value of a person's life insurance policy as collateral. Traditionally, these were loans issued at a very low interest rate, but that is no longer universally true. If the borrower fails to repay the loan, the money is withdrawn from the insurance death benefit.Decide for what account, the loan will be provided. For example, to purchase two wheeler, four wheeler, computer, festival purpose, cloth, house hold articles, marriage, house building, children education, etc.Decide the loan amount. once again you need to categories staff position. For example...marriage loan can be given to all...however the amount may be varied depending upon the remuneration they get... and repaying capacity.You need to deduct all the loan from the salary.