We are giving loans to employees. Is there any time period that the loan should be repaid? As the loans are given, the repayment amount is decided by the employees. Before the completion of the full repayment, sometimes we receive requests for another loan. However, we have limitations of 3 months of gross salary for each employee. In such cases, what can we mention as the repayment period, and can the company also specify the repayment amount?
From India, Pune
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From India, Pune
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Hi, you need to establish a loan policy. For example, specify who can apply by requiring a minimum number of years of service. A new loan should not be sanctioned before the completion of the first loan. The maximum repayment tenure cannot exceed a certain number of years, which should be company-specific. Additionally, consider the measures to take if an employee absconds after taking a loan. What hold do you have in such situations?
From India, Madras
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1015From India, Madras
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Employee reference policy.doc