POLICY

Doc Level: II Doc Version:03

COMPANY LOAN POLICY
Doc No:HR-P-09 w.e.f: 01-04-2017

1.OBJECTIVE

The purpose of this policy is to facilitate employees in exceptional circumstances on

sympathetic grounds. Authorization of loan is subject to the Management discretion.

2.SCOPE
This policy is applicable to all Management and Non-Management Permanent / Contractual
Employees only however trainees will not be entitled .This policy lays down the terms &
conditions for the grant of interest free loan for building or purchase of house, marriage of
blood relations (any one of son, daughter, brother or sister), any serious illness of any
above-mentioned blood relations or at the time of hard ship.

3.ELIGIBILITY

Eligibility of an employee for getting benefits of this policy shall be subject to meeting the
following conditions:

3.1 For Permanent Employees:

3.1.1 A Permanent employees can apply company loan equal to the amount up
to two gross salaries.

3.1.2 He / She should have completed at least two years of continuous service
with the company.

3.1.3 After clearance of the loan , three years gap is mandatory for applying the
next loan.

3.1.4 Company loan amount should not exceed the limit of the outstanding
balance of provident fund loan.

3.1.5 It is obligatory for a permanent employee to first avail the provident fund
loan facility at the time of need.

3.1.6 If an employee has already availed the PF loan facility, he/she will be
entitled for company loan up to the available balance limit of provident
fund.

3.2 For Contractual Employees:

3.2.1 He / She should have completed at least two years of continuous service
with the company.

3.2.2 He/she can apply for Loan amount up to three gross salaries.

3.2.3 After clearance of the loan , two year gap is mandatory for applying the
next loan.

4.TERMS & CONDITIONS

4.1 Department Head should consider performance, punctuality and conduct

while recommending the company loan.

CONTROLLED, CONFIDENTIAL @ IKAN Engineering Services (Pvt) Ltd.------------------------ Page1 of 2

 POLICY
Doc Level: II Doc Version:03
COMPANY LOAN POLICY
Doc No:HR-P-09 w.e.f: 01-04-2017

4.2 Loan amount shall be returned in 12 monthly equal instalments

once agreed instalments will not be changed.

4.3 Application will be signed by two employees who would undertake to

pay the unpaid loan in case the applicant turns out to be a
defaulter.

4.4 A guarantor must have completed minimum one year of service with good
repute and performance.

4.5 In case of any discrepancy, guarantors are bound to pay the remaining
amount of loan to the company.

4.6 One guarantor can give only two guarantees at a time.

4.7 In case employee found indulge in any fraudulent activity or any

misconduct proven against him/her , shall be liable to pay
lump sum loan amount.

5.PROCEDURE

5.1 Application for loan shall be made on loan application form # HR-FRM-08.

5.2 Concerned employee will fill the loan application form with two guarantors’
signature & will send it to the HR Department after necessary
recommendation from the concerned In charge and Divisional Head.

5.3 Head HR will forward the loan application form to the Finance
Department for further processing and disbursement.

6.APPROVALS

6.1 Approval / grant of loan under this policy shall be at the sole discretion of the
management keeping in view the availability of funds with the company.

6.2 If the loan amount exceeds the limit of Rupees Fifty Thousand, approval from
Director / CEO is mandatory, however less than this amount, should be
approved by Head HR.

Note:This policy will supersede the previous Loan Policy Doc No. IKAN-M-004

CONTROLLED, CONFIDENTIAL @ IKAN Engineering Services (Pvt) Ltd.------------------------ Page 2 of 2