Loan Policy

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OBJECTIVE
The objective of loan policy is to assist the people to meet the financial crisis at Zero or Low cost, and also by avoiding complicated & lengthy process to avail loans from the financial markets, which are comparatively at a higher interest.

POLICY STATEMENT
Loan from the organization is rendered at a zero or at a low cost and with a moral trust. Hence it is expected from the borrower to not only repay the loan in time but also to augment the moral trust, which an employer has put in the employee. This loan policy will be effective from April 1, 2019.

LOAN TYPE:
Critical Loan
Loan required for the expense of any medical emergency will be considered as critical loan.

Non-Critical Loan
Home Loan, Car Loan, Two-Wheeler Loan, Education Loan, Personal Loan will be considered as Non-Critical Loan

ELIGIBILITY
Non-critical Loan:
Any employee who has completed 2 years with the organization is eligible for the non-critical loan.

Critical Loan
All the employees are eligible for critical loan from the very first day of their joining. Any employee can request for this for him/her self and for immediate family members (blood relation, first circle).
Immediate family member includes:
• Parents
• Siblings
• Spouse
• Children

GENERAL RULES

Non-Critical Loan	Critical loan
Loan Amount
• Any employee who has completed more than 3 years with the organization is eligible for 3.5 times of his monthly CTC or Rs.3,00,000, whichever is lower. • Any employee who has completed 2 years with the organization is eligible for 2.5 times of his monthly CTC or Rs.1,50,000, whichever is lower. • Any employee cannot take loan over and above his/her eligibility in one financial year • If in case the employee needs to take another loan, s/he needs to complete the bond period and only then s/he can apply for another loan. • Loan approval is on Loan Committee’s discretion.	• The loan committee will assess the criticality of the emergency and based on that the loan amount will be finalized. This will be the sole discretion of the loan committee. • Any employee who is taking benefit of Critical loan will not be eligible for Non critical loan for a period of 12 months after the completion of last installment or 18 months of loan date, whichever comeslater.

Non-Critical Loan

Critical loan

Loan Amount

• Any employee who has completed more than 3 years with the organization is eligible for 3.5 times of his monthly CTC or Rs.3,00,000, whichever is lower.
• Any employee who has completed 2 years with the organization is eligible for 2.5 times of his monthly CTC or Rs.1,50,000, whichever is lower.
• Any employee cannot take loan over and above his/her eligibility in one financial year
• If in case the employee needs to take another loan, s/he needs to complete the bond period and only then s/he can apply for another loan.
• Loan approval is on Loan Committee’s discretion.

• The loan committee will assess the criticality of the emergency and based on that the loan amount will be finalized. This will be the sole discretion of the loan committee.
• Any employee who is taking benefit of Critical loan will not be eligible for Non critical loan for a period of 12 months after the completion of last installment or 18 months of loan date, whichever comeslater.

Repayment
• Repayment tenure will be MAXIMUM FOR 12 MONTHS, irrespective of designation, grade or loan amount. Employee can opt for lower tenure. In extreme cases, where an employee may need to extend the repayment tenure, it can be up to 18 months, however after 12 months, the interest rate will be 2.5% in addition to the current ROI for the rest of the month. • In any circumstances the amount of EMI cannot be LESSER then the EMI decided on the approval of the loan. However, employees can increase the EMI for any particular month. • Employee can also increase the EMI and reduce the loan repayment tenure. • Repayment will be done through EMI which will be directly deducted from an employee’s salary and will be reflected in the pay slip also.	• Repayment tenure can be discussed based on the loan amount. / with limitation of 18 months • Repayment will be done through EMI which will be directly deducted from an employee’s salary and will be reflected in the pay slip also.

Repayment

• Repayment tenure will be MAXIMUM FOR 12 MONTHS, irrespective of designation, grade or loan amount. Employee can opt for lower tenure. In extreme cases, where an employee may need to extend the repayment tenure, it can be up to 18 months, however after 12 months, the interest rate will be 2.5% in addition to the current ROI for the rest of the month.
• In any circumstances the amount of EMI cannot be LESSER then the EMI decided on the approval of the loan. However, employees can increase the EMI for any particular month.
• Employee can also increase the EMI and reduce the loan repayment tenure.
• Repayment will be done through EMI which will be directly deducted from an employee’s salary and will be reflected in the pay slip also.

• Repayment tenure can be discussed based on the loan amount. / with limitation of 18 months
• Repayment will be done through EMI which will be directly deducted from an employee’s salary and will be reflected in the pay slip also.

Interest Rate
Grade	Level	ROI	0%
S2, S3, C2, C3, M1 to M4, P1 to P4	Team Leader and Above Level	0% *
O3, O4, A3, A4, S1, C1	Sr. Executive – Asst. TL Level	4% *
T1 to T3, O1, O2, A1, A2	Jr. – Mid Executive Level	6% *

* 6% additional interest will be charged in case of additional loan amount requirement than the eligibility. However, special permission from the loan committee would be required in such cases.

Commitment (Bond Period)
• Any employee who has availed a loan for 50,000 or less than 50,000 is liable to continue service for 1 year following the sanction of loan or 6 months following the last instalment, whichever comes later. • Any employee who has availed loan for more than 50,000 is liable to continue service for 2 years after the sanction of loan sanctioned or 12 months after the last instalment, whichever comes later.	• Here we are not getting any bond signed

Commitment (Bond Period)

• Any employee who has availed a loan for 50,000 or less than 50,000 is liable to continue service for 1 year following the sanction of loan or 6 months following the last instalment, whichever comes later.
• Any employee who has availed loan for more than 50,000 is liable to continue service for 2 years after the sanction of loan sanctioned or 12 months after the last instalment, whichever comes later.

• Here we are not getting any bond signed

Process
• Employee need to apply in the specific format at least 3 weeks in advance. • Final decision to approve the loan will be taken by the Loan committee and the availability of the Loan Fund. • Loan will be disbursed only after signing a Legal Bond for the repayment of the loan and to fulfil the service period commitment. • Loan is a privilege provided to the employee, so based on the guideline of Govt. of India, there will be perquisite calculated for loan which will be added in gross salary.	• Employee or his/her family member can request for this loan over a phone call. • The loan amount cheque will be in favour of the employee. In extreme emergency the payment may be in favour of the hospital. • Employee/his/her family member needs to submit copy of medical certificate for the treatment after 3 - 5 days of hospitalization/ at the time of discharge

Process

• Employee need to apply in the specific format at least 3 weeks in advance.
• Final decision to approve the loan will be taken by the Loan committee and the availability of the Loan Fund.
• Loan will be disbursed only after signing a Legal Bond for the repayment of the loan and to fulfil the service period commitment.
• Loan is a privilege provided to the employee, so based on the guideline of Govt. of India, there will be perquisite calculated for loan which will be added in gross salary.

• Employee or his/her family member can request for this loan over a phone call.
• The loan amount cheque will be in favour of the employee. In extreme emergency the payment may be in favour of the hospital.
• Employee/his/her family member needs to submit copy of medical certificate for the treatment after 3 - 5 days of hospitalization/ at the time of discharge

Loan Policy

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