Loans to the employees of the organization will not be a matter of right but purely discretionary by the management. Following are the prescribed guidelines:

 

1.      Length of service in the organization: Minimum three years continuous service.

2.      Purpose:

• House building, major repair/new purchase

• Own, daughter's or dependent sister's marriage

• Serious illness- primarily for hospitalization for self, spouse, parents and unmarried children

• Victim of natural calamity and on similar compassionate grounds

• Purchase of own vehicles (two wheeler/four wheeler).

• Higher Education of children (for one child only).    

 

3.      Gap between repayment of the last loan in full and the application for the present should be minimum one year.

4.      All applications for loan must be applied through the specified Loan Form available at respective HR Departments.

5.      Employees can also be asked to furnish supporting documents to the Institute.

6.      Maximum amount: The maximum eligibility amount is 12 times of the Gross Monthly salary of an employee.  However, it will also depend upon the repayment capacity and purpose of the loan. The employees shall require pledging financial instruments in the form of NSC, LIC Policy, and Bonds of a value equal to 75 % of the loan amount. These instruments will be returned only after full recovery of the loan amount taken by the employee.

7.      Repayment: 36 - 60 monthly installments. Fixing of installments would depend on the employee's repayment capacity and management's decision. All employees shall deposit PDC of 25 % of the loan amount towards repayment at the time of getting loan amount.

8.      In case an employee departs before  repayment of the loan amount, his/her final settlement of account will be  withheld till such period the complete outstanding loan is recovered from  him/her.

Failure to deposit the balance loan amount within 15 days of leaving the services of the organization may lead to: -

 

• Recovery of outstanding loan with interest as per prevailing market rate

• Initiating appropriate legal action

• Deduction of outstanding loan from the Full & Final Account

 

 

Interest Rate: All loans will be bearing the interest rate of 10% unless management uses its discretion of waiving off or minimizing the interest.  Rate of interest is based on the prevailing market rate and may vary from time to time.  Interest may not be charged from an employee having gross salary of less than Rs. 20,000/- per month.