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    Company Loan Policy

    Uploaded by

    Kaleem
    This document outlines the company loan policy for employees. It provides eligibility requirements for permanent and contractual employees. Permanent employees must have two years of continuous service and can apply for a loan up to two gross salaries. Contractual employees need two years of service and can apply for a loan up to three gross salaries. The policy details terms like repayment in 12 monthly installments and need for guarantors. Loan applications require approvals from managers and directors depending on the amount.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Company Loan Policy

    Uploaded by

    Kaleem
    7K views2 pages
    This document outlines the company loan policy for employees. It provides eligibility requirements for permanent and contractual employees. Permanent employees must have two years of continuous service and can apply for a loan up to two gross salaries. Contractual employees need two years of service and can apply for a loan up to three gross salaries. The policy details terms like repayment in 12 monthly installments and need for guarantors. Loan applications require approvals from managers and directors depending on the amount.

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    This document outlines the company loan policy for employees. It provides eligibility requirements for permanent and contractual employees. Permanent employees must have two years of continuous service and can apply for a loan up to two gross salaries. Contractual employees need two years of service and can apply for a loan up to three gross salaries. The policy details terms like repayment in 12 monthly installments and need for guarantors. Loan applications require approvals from managers and directors depending on the amount.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    7K views2 pages

    Company Loan Policy

    Uploaded by

    Kaleem
    This document outlines the company loan policy for employees. It provides eligibility requirements for permanent and contractual employees. Permanent employees must have two years of continuous service and can apply for a loan up to two gross salaries. Contractual employees need two years of service and can apply for a loan up to three gross salaries. The policy details terms like repayment in 12 monthly installments and need for guarantors. Loan applications require approvals from managers and directors depending on the amount.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 2

    POLICY

    Doc Level: II Doc Version:03


    COMPANY LOAN POLICY
    Doc No:HR-P-09 w.e.f: 01-04-2017

    1.OBJECTIVE

    The purpose of this policy is to facilitate employees in exceptional circumstances on


    sympathetic grounds. Authorization of loan is subject to the Management discretion.

    2.SCOPE
    This policy is applicable to all Management and Non-Management Permanent / Contractual
    Employees only however trainees will not be entitled .This policy lays down the terms &
    conditions for the grant of interest free loan for building or purchase of house, marriage of
    blood relations (any one of son, daughter, brother or sister), any serious illness of any
    above-mentioned blood relations or at the time of hard ship.

    3.ELIGIBILITY

    Eligibility of an employee for getting benefits of this policy shall be subject to meeting the
    following conditions:

    3.1 For Permanent Employees:

    3.1.1 A Permanent employees can apply company loan equal to the amount up
    to two gross salaries.

    3.1.2 He / She should have completed at least two years of continuous service
    with the company.

    3.1.3 After clearance of the loan , three years gap is mandatory for applying the
    next loan.

    3.1.4 Company loan amount should not exceed the limit of the outstanding
    balance of provident fund loan.

    3.1.5 It is obligatory for a permanent employee to first avail the provident fund
    loan facility at the time of need.

    3.1.6 If an employee has already availed the PF loan facility, he/she will be
    entitled for company loan up to the available balance limit of provident
    fund.

    3.2 For Contractual Employees:

    3.2.1 He / She should have completed at least two years of continuous service
    with the company.

    3.2.2 He/she can apply for Loan amount up to three gross salaries.

    3.2.3 After clearance of the loan , two year gap is mandatory for applying the
    next loan.

    4.TERMS & CONDITIONS

    4.1 Department Head should consider performance, punctuality and conduct


    while recommending the company loan.

    CONTROLLED, CONFIDENTIAL @ IKAN Engineering Services (Pvt) Ltd.------------------------ Page1 of 2


    POLICY
    Doc Level: II Doc Version:03
    COMPANY LOAN POLICY
    Doc No:HR-P-09 w.e.f: 01-04-2017

    4.2 Loan amount shall be returned in 12 monthly equal instalments


    once agreed instalments will not be changed.

    4.3 Application will be signed by two employees who would undertake to


    pay the unpaid loan in case the applicant turns out to be a
    defaulter.

    4.4 A guarantor must have completed minimum one year of service with good
    repute and performance.

    4.5 In case of any discrepancy, guarantors are bound to pay the remaining
    amount of loan to the company.

    4.6 One guarantor can give only two guarantees at a time.

    4.7 In case employee found indulge in any fraudulent activity or any


    misconduct proven against him/her , shall be liable to pay
    lump sum loan amount.

    5.PROCEDURE

    5.1 Application for loan shall be made on loan application form # HR-FRM-08.

    5.2 Concerned employee will fill the loan application form with two guarantors’
    signature & will send it to the HR Department after necessary
    recommendation from the concerned In charge and Divisional Head.

    5.3 Head HR will forward the loan application form to the Finance
    Department for further processing and disbursement.

    6.APPROVALS

    6.1 Approval / grant of loan under this policy shall be at the sole discretion of the
    management keeping in view the availability of funds with the company.

    6.2 If the loan amount exceeds the limit of Rupees Fifty Thousand, approval from
    Director / CEO is mandatory, however less than this amount, should be
    approved by Head HR.

    Note:This policy will supersede the previous Loan Policy Doc No. IKAN-M-004

    CONTROLLED, CONFIDENTIAL @ IKAN Engineering Services (Pvt) Ltd.------------------------ Page 2 of 2

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