Employee Loans: Can Companies Charge Interest or Must They Be Interest-Free?

Hi,

I seek clarification on the Employee Loan provided by the Company - does the Company levy interest on it or not? I believe the Company cannot charge interest on the loan provided to its employees because it is not a banking institution entitled to claim interest.

Please suggest any notifications or case laws supporting this.

Regards,
PRASHANTH
Email: hrprashanthkumar@gmail.com
Bangalore.

Dear,

It is internal company policy. If you want to take a loan, you have to follow the company policy. The company is not forcing you to take a loan.

In my view, the company can make a policy and can charge interest on the loan.

Regards,
J S Malik