Skip to Content
0
Former Member
May 26, 2016 at 11:25 AM

Query on Loans

71 Views

Our client, is giving a loan to employees. But have a query on few of their loan conditions:

The loan amount will be repaid over period of 5 years, i.e. 60 equal installments which will be deducted from salary.

1. If the employee wants, he can repay the loan outstanding amount at one go any time during the loan, but he cannot do this more than once, i.e. he cannot have multiple part repayments. Is there any way for the system to prevent part payments by employee more than once.

2. Secondly, regarding the loan interest:

  • The loan will be interest free only in cases where the employee remains employed with the company for a period of 5 years post availing the loan.
  • If an employee who has availed this loan leaves the company during the period 1-3 years post availing loan then interest will be charged @ declared by the SBI as on 1st April every year on reducing balance from the date of the loan.
  • If an employee who has availed this loan leaves the company during the period 3-5 years post availing loan then interest will be charged @ 10% on reducing balance from the date of the loan.

Is there any way these conditions of loan interest can be provided?


Request if somebody can advise me on the above points


Thank you