Company Loans / Advances To Employees

The following interest free loans and advances are provided for employees. To avail loans, the
employee has to fill the loan application form and forward it to HRD at Corporate Office through
Departmental / Regional Head.

1)      Salary Advance:
a)      One month Basic salary can be availed for any specific purpose.
b)      Advance can be availed   twice in a year
c)       The amount sanctioned and availed on or before 15th of a month shall be adjusted in the
same month’s salary or in the following month’s salary in case the advance is availed after
15th of a month.
2)      Festival Advance:
a)      Employees in the Band of 6 (Officers) shall be eligible for festival loan.
b)      Eligible employees can avail an amount not exceeding two months basic salary or
Rs.10,000/- which ever is lower as Festival Loan.
c)      Festival Loan can be availed only once in a year against any major festivals.
d)      Festival Loan shall be given against specific festival which falls within 3 weeks of loan
application
e)      The amount sanctioned shall be deducted from employee's salary in 10 equal monthly
installments
3)      Marriage Loan:
a)       Employees are eligible for this loan on their own wedding, marriage of their own wedding,
marriage of their dependent children and or dependent sisters.  An employee can avail this
facility maximum of 4 times during his or her employment with the Company.
b)      Employees who have completed three years of service can avail an amount not exceeding
their six months salary or Rs.40000/- whichever is lower as Marriage Loan.  The amount
sanctioned shall be deducted from their salary in 20 equal monthly installments.
c)      Employees with less than three years of service with the Company can avail an amount not
exceeding their three months salary or Rs.25000/- whichever is lower as Marriage Loan.  The
amount sanctioned shall be deducted from their salary in 15 equal installments.
4)      Emergency Loan:
a)      Emergency for the purpose of this loan shall mean and include any hospitalization, death,
serious accident in the family and untoward expenses due to natural calamities such as
damages to house, etc of the respective employee.
b)      In the case of hospitalization of employee or immediate family members covered under
Group Mediclaim Policy, an amount up to or equivalent to employee’s mediclaim eligibility
can be availed as Emergency Loan.
c)      In the case of hospitalization of employee’s extended family members who are dependent to
the employee, an amount up to 3 months salary can be availed as Emergency Loan.
d)      An amount not exceeding three months basic can be availed as Emergency Loan for the
purposes mentioned under this loan facility such as death or serious accident in the immediate
family and or damages due to natural calamities in the Family.
e)      The amount sanctioned shall be recovered from employee’s salary in 15 equal monthly
installments.
5)      Privilege Loan
a)      Employees can avail privilege loan an amount equivalent or up to five months basic salary
for the purposes of house rent advance and children school admission.  The facility can be
availed once in a year and shall be deducted from employee’s salary in 12 equal installments.
1.  Any Loan amount equivalent to Rs.20000/- or more shall attract Income Tax.  The interests on
such loan amount shall be treated as perquisites for income tax purposes as per the Income Tax
Act.
2. Any loan disbursed before 15th of a month, the recovery deductions begins of that month itself.
Loan disbursed after 15th, the recovery deduction begins from the following month.
3. If one Loan is pending, further loan will not be allowed except in case of emergency. When one
emergency loan is pending, another emergency loan shall not be given.
4. Second Loan for higher amount to foreclose the previous loans shall not be allowed.
 
 
 
 

 
 
 
LOAN REQUISITION FORM
  (All loan requisition should be routed through Dept. Head to HRD.  HRD shall advise Accounts/Commercial for disbursement of
loan).
                                                                                                                                Date                        :
Name                                      :                                                                               Personal No.         :
Date of Joining                     :                                                                               Department           :
Location                                                :                                                                               Designation          :
                                                                                                                                Grade                      :
Purpose of
Loan                   :                                                                                ____________________________________
________________________________________________________
( Please specify the reason with full details)
 
Type of Loan requested                      Maximum Eligibility                                           Basic +
DA                     Amount                                                                                                                                           
(To be filled by employee)              
            Salary Advance                     One month Basic + DA
                                                         
             Emergency Loan                  Three months Basic + DA 
                                     
             Festival Loan                        Two month Basic + DA or Rs.10000/-                                                  
( wh ichever is lower ) only to O & S grade        
             Marriage Loan                      Six months Basic + DA or Rs.40000/-    
( whichever is lower ) - > than 3 yrs ser.  OR
Three months Basic + DA or Rs.25000/-
( whichever is lower ) - < than 3 yrs ser.
                       
            Privilege Loan                        Five months Basic + DA                                             
 
Recovery in no.of installments requested              :
 
Any other loan pending                                          :                                                          Amount :
 
Declaration: On demand, I promise to pay to M/s.CavinKare Private Limited, a sanctioned Loan amount
which                                    shall be deducted from my salary.
Signature of the employee                      :
__________________________________________________________________________________________
__
 
Amount Recommended by Dept Head / FH :                                  Signature :                                             Date:
                                                                                                                Name        :                            
(Sanctioning of loans shall be subject to the conditions specified in the policy.)
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For HRD Use
To:   Accounts / Commercial                                                                                                             
 
Kindly arrange to pay Rs.____________ ( _____________________________________________________ )
to Mr.\Ms._______________________________________ (Personal No. ____________ )duly approved
by  __________________________    towards ________________________ loan which shall be deducted
in  ________equal monthly installments.
 
 
 
 
Asst  Manger HRD                                                                                                                                General
Manager - HRD