Need Help Crafting a Loan & Advance Policy: What Works in Your Organization?

Hi All,

Can somebody help me out with this? We want to frame a Loan & Advance policy, and it would be great if you all could suggest and guide me based on your experiences and the policy you follow in your organizations.

Regards,
HRATUL

Hello,

We have a very simple policy in our company. Following are the two conditions that are considered here:

ADVANCE POLICY:

The member would have an option to take the advance in the following two ways they feel convenient:

1. The Salary due for the current month, up to the date of advance payment. E.g., ABC is given a salary advance on 14-Feb-06. He would be eligible for Nett Salary/28*14. At the end of the month, he would have the remaining amount credited to his account.

2. The member gets to decide the amount he wants to take as advance. However, the amount would be deducted in 5 equal monthly installments starting from the current month. The advance amount cannot exceed his last two months' salary.

Hope this has helped you.

Regards, Soumya Shankar

Greetings,

Please find attached a policy on personal loans.

Hope this helps.

Regards,
Ali

Hi!

The loan document attached in the last reply is very comprehensive. We too have policies along the same lines, except it is open to all employees (after confirmation), and we ensure thorough documentation (getting the legal papers signed). We don't require proof of how the loan is spent. The rest, whether one month's or two months' time, is for you to decide.

I hope this answers your query.

Thank you,
Sushmita