Staff Loans and Applicable Policies
Regarding staff loans, no applicable labor laws are in place. You may have to devise suitable HR policies for the proper administration of loans. You can introduce different types of loans, such as vehicle loans (for the purchase of 2-wheelers, 4-wheelers, etc.). Some companies have loan schemes like this, which are also interest-free, for the benefit of their staff. The only thing the staff need to ensure is that the vehicles purchased using the loan facility provided by the company shall have to be hypothecated in the name of the company until the loan amount is fully recovered. Some companies may impose a simple interest rate (lower than the bank rate) for staff loans.
Other Loan Options
Similarly, you can also introduce other loan options such as self-education loans, personal loans, and marriage loans for the benefit of staff, subject to a ceiling at the discretion of management, with the loan amount based on the staff's cadre.