2
Hi,
First you need to arrive at eligibility criteria for employee loan like who can apply for loan whether confirmed employee or all etc.
Formulate a Policy and following points you may include in it.
What will be the maximum amount of loan per employee say for example 2 months net or gross salary only can be given as advance.
Until the employee settle the existing loan, he/she cannot apply for new loan.
What will be maximum EMI period. You may consider for a maximum period 12 to 15 months.
Loan request will be considered for specific reasons like Medical emergency/ school fees for children/ death of immediate family member. You may add any other reasons if need be.
Salary advance is totally different from loan. Normally when there is a request for salary advance from employee partial advance amount will be paid to the employee and at the time of salary disbursement the employee will get the balance salary only and there is no EMI option in salary advance.
Please note that if loan is given by the employer to the employee, it is a perquisite chargeable to tax based on certain criteria's.
From India, Madras
First you need to arrive at eligibility criteria for employee loan like who can apply for loan whether confirmed employee or all etc.
Formulate a Policy and following points you may include in it.
What will be the maximum amount of loan per employee say for example 2 months net or gross salary only can be given as advance.
Until the employee settle the existing loan, he/she cannot apply for new loan.
What will be maximum EMI period. You may consider for a maximum period 12 to 15 months.
Loan request will be considered for specific reasons like Medical emergency/ school fees for children/ death of immediate family member. You may add any other reasons if need be.
Salary advance is totally different from loan. Normally when there is a request for salary advance from employee partial advance amount will be paid to the employee and at the time of salary disbursement the employee will get the balance salary only and there is no EMI option in salary advance.
Please note that if loan is given by the employer to the employee, it is a perquisite chargeable to tax based on certain criteria's.
From India, Madras
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