1. Purpose:

The Interest-Free Loan Policy aims to provide eligible employees of the company with the opportunity to borrow funds for personal needs without incurring any interest charges. This policy outlines the eligibility criteria, loan terms, application process, and repayment guidelines for interest-free loans.

2. Eligibility:

a. Regular Full-Time Employees: 

All regular full-time employees who have completed a one year of period of employment are eligible to apply for an interest-free loan.

b. Loan Limits: 

The policy will define the maximum loan amount an employee can borrow based on their salary and employment tenure.

3. Loan Application Process:

a. Application Submission: 

When planning to apply for a loan. Please discuss your request with the HR department and then document your request formally by means of an email. Employees must complete a loan application form can be requested from the HR , which includes personal and financial information, the desired loan amount, the purpose of the loan, and any supporting documentation required.

b. Loan Committee/Approval: 

A designated management personnel will review loan applications, ensuring confidentiality and making loan approval decisions based on predetermined criteria.

c. Loan Disbursement: 

Upon approval, the loan amount will be disbursed to the employee through an agreed-upon method, such as a direct deposit to their bank account or check issuance.

4. Loan Terms and Conditions:

a. Interest-Free: 

The interest-free loan will not accrue any interest charges during the repayment period.

b. Repayment Period: 

The policy will define the maximum repayment period for interest-free loans. This period may vary based on the loan amount, employee's salary, and other factors.

c. Repayment Installments: 

Employees will be required to repay the loan in fixed monthly installments, as determined by the policy. The loan agreement will outline the repayment schedule, including the start date, due dates, and total repayment amount.

d. Prepayment Option: 

The policy may allow employees to make prepayments towards the loan without incurring any penalties or additional charges.

5. Loan Administration and Records:

a. Loan Agreement: 

A written loan agreement will be executed between the employee and the company, clearly stating the terms and conditions of the interest-free loan.

b. Loan Repayment Deductions: 

The company may deduct the loan repayment installments directly from the employee's salary, subject to applicable laws and regulations.

c. Confidentiality: 

All loan-related information, including personal and financial details, will be treated with strict confidentiality.

d. Records Maintenance: 

The HR department or an appointed administrator will maintain accurate and confidential records of loan applications, approvals, disbursements, and repayments.

6. Default and Consequences:

a. Default: 

If an employee fails to make timely loan repayments as per the agreed schedule, it will be considered a default. The policy will outline the consequences of default, such as late payment fees, suspension of future loan privileges, or legal actions if necessary.

b. Termination or Resignation: 

In the event of an employee's termination or resignation, any outstanding loan balance will be deducted from their final paycheck or handled according to the policy's provisions.

7. Policy Review:

The interest-free loan policy will be periodically reviewed and updated as necessary to ensure compliance with applicable laws, financial considerations, and company policies.