Advance & Loan Policy

Advance & Emergency Loan Policy

Statement of Intent

The purpose behind formulating this comprehensive policy would be to accommodate all
the employees with genuine request for loan and advance. A maximum portfolio limit has
been prescribed for the Firm. Request for loan/advance can be entertained with in the
set limit. If the demand for loan/advance is getting in access with the set limit, the
applicant will have to wait till there are sufficient funds in the set portfolio.

Advance against Salary

This amount is given against salary for a limited period depending upon the salary of the
employee.

Entitlement Criteria. Any employee applying for advance must meet the following
criteria:

ƒ Minimum period of liability for advance payment is 6 months.

ƒ After 6 months or more service period, an employee is entitled to an amount equal to
maximum one gross salary.

Payback Period

Advance payment will be recovered lump sum from the next month salary.

Grant of Emergency Loan

The purposes behind formulating this policy is to help employees only for their following
genuine needs
ƒ Medical Assistance.
ƒ Marriage.
ƒ Accident
ƒ Calamities/Damages.
ƒ Other emergency needs

A loan is a type of debt. The borrower receives an amount of money from the Firm,
which he will pay back, in regular installments.

Entitlement Criteria. Any employee applying for advance must meet the following
criteria:

EE&T- Loan & Advance Policy, September 2006

Advance & Loan Policy

ƒ Minimum period of service in order to acquire this facility is 6 months.

ƒ Band wise entitlement is given as below.

Tiers Entitlement
Band 1-5 Up to one gross salary
Band 6 & 7 Up to two gross salaries

Payback Period

ƒ Maximum 6 months of payback period is allowed for employees with service period
of less then 1 year.
ƒ Maximum 12 months of payback period for employees with a service period of 1 year
or more.
ƒ Amount taken as loan can be reimbursed in lump sum at any time during the
payback period.

Recovery upon Default or Resignation

In case the employee fails to payback with in the above-mentioned period, amount of
loan will be adjusted/ recovered against his/her salary.

Upon the termination or resignation of employee, during the tenancy of advance/loan

period, the balance amount will be claimed against his/her final settlement.

Channel for Application

ƒ Request for loan/advance will be made on the specific form prescribed for this
purpose. Specimen form is attached for information.
ƒ Line manager of employee would forward the duly recommended request to the HR
Department.
ƒ Manager Operations will give the final approval.
ƒ Three copies will be generated. one for own record of employee, second for HR and
third for accounts department

EE&T- Loan & Advance Policy, September 2006