Employee Loan Whether Interest Free ?

Hi,
I seek clarification on Employee Loan provided by Company as whether Company levy Interest on that or not? . As I believe Company cannot claim interest on the Loan provided to its employees. Because it is not a Banking institution to claim interest.
Please suggest with any notification or case laws etc.,
Regards,
PRASHANTH
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Bangalore.

Dear
it is internal company policy.if you want to take loan you have to follow company policy.company is not forcing you to take loan.
in my view company can make policy and can charge intrest on loan.regards
j s malik