Dear Raviraj,
We had faced problems while employees availed personal loans from financial institutions.
While the financial institutions approached us for discussing their proposal we made it clear that the company will only recover the loan amount to the extent the employee earns salary. However, if for any reason the employee does not earn salary, the company will not make upfront payment for the loan amount and recover it later from the employee.
Likewise if the employee leaves the organisation the company will only send an intimation to this effect to the financial institution and the company will not liable for recovering the balance loan amount from the employees full and final settlement. Intially these institutions refused to accept our conditions but we were firm and finally a letter to this effect was signed by me and handed over to the financial institution and the duplicate was acknowledged by them. Subsequently when the salary fell short of the EMI or when the employee left we merely wrote a letter to the financial institution for recovering the amount.
As regards Maheswari's query you cannot recover any dues from the Gratuity amount and dues to the extent of salary, leave encashment, LTA and Medical reimbursement expenses alone can be recovered.
Never entertain personal loans from company as this will be difficult for you defend your case when the employee leaves the organisation. It is also advisable not to recommend any personal loan amount employeewise statement to any financial institution as this will be a document binding on the company.
M.V.KANNAN
From India, Madras
257We had faced problems while employees availed personal loans from financial institutions.
While the financial institutions approached us for discussing their proposal we made it clear that the company will only recover the loan amount to the extent the employee earns salary. However, if for any reason the employee does not earn salary, the company will not make upfront payment for the loan amount and recover it later from the employee.
Likewise if the employee leaves the organisation the company will only send an intimation to this effect to the financial institution and the company will not liable for recovering the balance loan amount from the employees full and final settlement. Intially these institutions refused to accept our conditions but we were firm and finally a letter to this effect was signed by me and handed over to the financial institution and the duplicate was acknowledged by them. Subsequently when the salary fell short of the EMI or when the employee left we merely wrote a letter to the financial institution for recovering the amount.
As regards Maheswari's query you cannot recover any dues from the Gratuity amount and dues to the extent of salary, leave encashment, LTA and Medical reimbursement expenses alone can be recovered.
Never entertain personal loans from company as this will be difficult for you defend your case when the employee leaves the organisation. It is also advisable not to recommend any personal loan amount employeewise statement to any financial institution as this will be a document binding on the company.
M.V.KANNAN
From India, Madras
Thank you for your helpful hints. It's been a pleasure for a site of this nature having this opportunity where ideals are shared amongst pple and it does helps so much.
Once again thank you for this wonderful hints on staff loan policy.
From Nigeria, Lagos
Once again thank you for this wonderful hints on staff loan policy.
From Nigeria, Lagos
Dear members, If employee is taking persoanl loan from employer what documents one need to make and what precuations for repaymnet shall be taken Thanks in Advance
From India
From India
To know the need for money and to borrow wisely is a wise man doing in a start-up concern. To understand the need for money, and its leverages, in the long run. It is a necessity to be brief enough on the purchase of the capital.
Not to borrow more than need.
Never to borrow more than need. Limit the demand and to borrow far less than the requirement. Leveraging the cash flow in the business will enable wise borrowings sense.
Choosing the borrowing Institution carefully.
Never to borrow on high-Interest rates or from money lenders. Borrow wisely from a registered government banking sector. Comparing the various schemes available to choose the right repayment schedule with accordance with the money flow in the business.
Staying on guard with Loan sharks.
Money is a product with the money lenders. Most of them will like to get maximum leverages for the money lent. We as placements consultancy in Bangalore have the human resources as our source of income for survival, and we do Charge for the services offered.
Lenders have tricky ways to mount the charges on borrowings on different styles like service charges and documentation charges, which are negotiable in many ways.
The overdraft limit sanctioned by bankers depending upon the securities pawned or repayment capacity of the Account holder. Interest is charged only for the money borrowed as repayment can be scheduled with the cash flow.
Borrowing with calculation on repayments schedules.
Repayment tenure depends on business to business with the cash flow and long term goals taken into account. On a personal note, we suggest short term borrowings that may cut the interest payments in the long run. A long term business plan needs planning with a focus in assets accumulation strategy.
Monthly tract record on Payments and overheads.
A wise businessperson will ensure productivity in all departments. Offloading any employee found unproductive is a continues to process in any concern seeking organic growth.
A luxurious lifestyle advisably avoided once borrowings have come into existence in the business. A smart businessperson will have a priority to close the lenders at the earliest to go on cash surplus status.
Purchases had to be on streamline with a focus on quality and pricing. Relationship with vendors will be on a positive status for a favourable paying term.
Systems in the business will be a periodic check-in for all departments, which are a recurring expense need constant checks and measures to curtail unwanted expenditures.
Handling an Unforeseen situation
There can be a situation where commitments can vary predictability.
An Invoice payment can get postponed beyond the desired dates.
Business can get affected because of competition.
The flow of business can be slowed down with economic or untold reasons.
Seasonal changes in business may be a concern.
Technology is fast-changing with consumer awareness and expectations exceeding the past.
To withstand the timely situation with firmness and audacity is an entrepreneur born ability.
Family commitments while on business loan periods.
Never to get sentimental when money matters. Tightening on a tight budget with all family commitments.
To be honest with family members of the situation in business and requesting their best assistance in curbing all unwanted expenditure while on a loan spree.
No business thrives without loans, and entrepreneurs dreams is a cash surplus staus.
Only a smart connoisseur of gentlemen will be able to come out of the loan struggle unscathed as a victorious businessperson with the supporting family.
From India, Bangalore
Not to borrow more than need.
Never to borrow more than need. Limit the demand and to borrow far less than the requirement. Leveraging the cash flow in the business will enable wise borrowings sense.
Choosing the borrowing Institution carefully.
Never to borrow on high-Interest rates or from money lenders. Borrow wisely from a registered government banking sector. Comparing the various schemes available to choose the right repayment schedule with accordance with the money flow in the business.
Staying on guard with Loan sharks.
Money is a product with the money lenders. Most of them will like to get maximum leverages for the money lent. We as placements consultancy in Bangalore have the human resources as our source of income for survival, and we do Charge for the services offered.
Lenders have tricky ways to mount the charges on borrowings on different styles like service charges and documentation charges, which are negotiable in many ways.
The overdraft limit sanctioned by bankers depending upon the securities pawned or repayment capacity of the Account holder. Interest is charged only for the money borrowed as repayment can be scheduled with the cash flow.
Borrowing with calculation on repayments schedules.
Repayment tenure depends on business to business with the cash flow and long term goals taken into account. On a personal note, we suggest short term borrowings that may cut the interest payments in the long run. A long term business plan needs planning with a focus in assets accumulation strategy.
Monthly tract record on Payments and overheads.
A wise businessperson will ensure productivity in all departments. Offloading any employee found unproductive is a continues to process in any concern seeking organic growth.
A luxurious lifestyle advisably avoided once borrowings have come into existence in the business. A smart businessperson will have a priority to close the lenders at the earliest to go on cash surplus status.
Purchases had to be on streamline with a focus on quality and pricing. Relationship with vendors will be on a positive status for a favourable paying term.
Systems in the business will be a periodic check-in for all departments, which are a recurring expense need constant checks and measures to curtail unwanted expenditures.
Handling an Unforeseen situation
There can be a situation where commitments can vary predictability.
An Invoice payment can get postponed beyond the desired dates.
Business can get affected because of competition.
The flow of business can be slowed down with economic or untold reasons.
Seasonal changes in business may be a concern.
Technology is fast-changing with consumer awareness and expectations exceeding the past.
To withstand the timely situation with firmness and audacity is an entrepreneur born ability.
Family commitments while on business loan periods.
Never to get sentimental when money matters. Tightening on a tight budget with all family commitments.
To be honest with family members of the situation in business and requesting their best assistance in curbing all unwanted expenditure while on a loan spree.
No business thrives without loans, and entrepreneurs dreams is a cash surplus staus.
Only a smart connoisseur of gentlemen will be able to come out of the loan struggle unscathed as a victorious businessperson with the supporting family.
From India, Bangalore
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