1276 - Revised Personal Loan Policy

Policy No : SRF/PP/22/06.
2
Supersedes : SRF/PP/22/02.1
PERSONAL LOAN Pages : 1 of 10
Issue Date : 23rd June 2022
Effective Date: 23rd June 2022
POLICY To provide loan to Officers for the purpose of housing, marriage, child’s education,
purchase of white goods, holiday, and healthcare.
ELIGIBILITY All Officers at SRF Limited India.
ENTITLEMENT Maximum limit for availing the personal loan varies as per the tenure of the Officer:
Category Band Tenure at Maximum Maximum Rate of
SRF loan limit no. of interest
(Rs.) monthly
installments
Emergency All Officers All 1,00,000 12 3%
Loan
I All confirmed 1- 2 years 5,00,000 60 10% on
Officers reducing
II All confirmed More than 10,00,000 60 balance for
Officers 2 years all types of
loans except
loans taken
for sub-
category
A&D below,
where it will
be 7.5%.
III* All confirmed More than 15,00,000 120 for all 11% on
Officers in Bands 5 years category III reducing
M1-M3, L9-L14, loans taken balance for
C1-C6, Sec for housing all types of
Cadre, Estate purposes loans except
Officer and (sub- loans taken
Supernumerary category A for sub-
L1-L3 mentioned category
All confirmed 20,00,000 below) A&D below,
Officers in Bands where it will
M4, L15-L16 and 90 for all be 7.5%.
C7 other
All confirmed 25,00,000 category III
Officers in Bands loans
M5, L17-L18 and
C8
All confirmed 40,00,000
Officers in Bands
M6, C9 and
Supernumerary
L4
All confirmed 50,00,000
Officers in Bands
M7 and C10
SRF - General [Restricted use] - This mail, document can be used by recipients for its intended purpose only.
Policy No : SRF/PP/22/06.2
* Category III loan can be availed by Officers only for the below mentioned heads.
The heads under which Category III (entitlement upto Rs. 50,00,000) loan can be availe d
are as follows:
A. Purchase of dwelling (flat/house) or renovation of existing accommodation,

purchase of plot/land for the purposes of building a house
B. Higher education of children, and siblings (in case of unmarried Officers)
C. Marriage of children/self
D. Medical treatment for self or immediate family, including parents
RULES 1. All Officers have an option to avail an emergency loan of up to Rs. 1,00,000 for only
addressing medical emergencies of immediate family members (self, spouse,
parents/in-laws, children). There are no top-ups available on this loan and this can
be availed only once in a financial year after repayment of all outstanding loans
under this category. Submission of documentary proof(s) of such treatment will be
necessary. It is mandatory to have an individual or SRF Mediclaim policy, the
coverage limit of which has been exhausted, to avail of this loan. Such policy should
be covering the family member for whom the loan is being requested for.
Additionally, the treatments not covered under the existing Mediclaim policies may
be covered under this, subject to scrutiny by HR. The difference between the
market interest and the interest charged by the organization will be liable to be
added as perquisite in the Officer’s income.
2. The interest rate for availing the loan will be reviewed every year and can change at
the discretion of the management. Any change in the interest rate will impact
subsequent loans; the interest rate for a particular loan will not undergo any change
during the tenor of the loan. In cases where an Officer opts for an ‘additional loan’
(explained in rule no. 11), the interest rate applicable on the new disbursed loan
amount will be as per the prevailing new rate. However, the outstanding loan
amount will continue at the old interest rate as it prevailed at the time of
disbursement of the original loan.
3. All women Officers will be offered loans at a 1% lower interest rate than the
applicable rate taken for:
I. purchase of a dwelling (flat/house)
II. purchase of plot/land for the purposes of building a house
III. for cost of construction of a house
For availing this discount, the woman Officer must be the legal owner of the asset
(land/house), partly or fully. This facility will not be applicable in case of renovation
of old properties.
4. If the interest charged as above is lower than the interest circulated by SBI for the
purposes of calculating perquisite tax at any point of time during the tenor of the
loan, then the difference between the two interest rates will be taxable as
perquisite in the hands of the Officer.
5. There will not be any taxable perquisite if the loan given is for medical treatment in
respect of diseases specified in rule 3A (2), Income Tax rules 1962 (Annexure 4.1) or
where the loan amount does not exceed Rs. 20,000.
6. The maximum tenor of the loan is 5 years (for category I & II loan) and 7.5/10 years
(for category III loan) or the remaining period left up to the retirement of the
Officer, whichever is less.
7. Monthly installment (principal) for the Officer is fixed at the beginning of the loan
tenor and interest is calculated on a monthly reducing balance.

8. Monthly installment comprising principal and interest will be deducted from the
Officer’s monthly salary.
9. Total monthly deductions (including the loan’s monthly installment) should not
exceed 50% of the net monthly salary of the applicant. This clause will be applicable
to all future requests made by the Officer. For example, a request to contribute to
VPF may be denied if the net salary falls below the 50% level in case the additional
deduction is allowed.
10. The Officer has the option to reduce the tenor of the loan, part-prepay or prepay
the entire loan before the fixed tenor of the loan at no additional cost.
11. An Officer, who has an outstanding loan at a given point of time, has an option of
requesting for another ‘additional loan’ up to the applicable limit. At the time of
disbursement of the new loan, any outstanding amount will be adjusted by the
company such that at any given point of time the total loan amount does not
exceed Rs. 10,00,000 (in case of category I and II loan) and Rs. 50,00,000 (in case of
category III loan), depending on your band eligibility.
Please note, the heads under which category III loan can be availed as additional loan have
to be as specified prior to taking the loan.
In reference to this:
i. For every loan tenor, Officers will have an option of availing one ‘Additional
loan’
ii. An Officer is at the liberty to choose the tenor of the new loan, subject to the
maximum limit prescribed by the policy, i.e., 60, 90 or 120 months depending
upon the loan category
iii. This option is also available to the Officers who have just completed 2 years
with SRF and have already availed a loan upto Rs. 5 lakhs or 5 years with SRF
and have taken a loan amount less than his/her grade category as applicable in
the policy. This additional loan top-up will be over and above the regular
‘additional loan’ as per policy.
For example:
Loan Loan Loan New New New Loan
Availed Repaid Outstanding Loan disbursement Outstanding
availed
CASE 5 lakhs 2 lakhs 3 lakhs 5 lakhs
2 lakhs (Max 5 lakhs (3 lakhs
I (@*x% eligibility minus @*x% interest rate
interest loan + 2 Lakhs @ y%
rate) outstanding) interest rate)
On completion of 2 years Officers who have availed loan of Rs.2 lakhs:
CASE 2 lakhs 1 lakh 1 lakh 5 lakhs 4 lakhs (Max 5 lakhs (1 lakh
II (@*x% eligibility minus @*x% interest rate
interest loan and 4 lakhs @ y%
On completion of 5 years:
CASE 5 lakhs 2 lakhs 3 lakhs 10 lakhs 7 lakhs (Max 10 lakhs (3 lakhs
III (@*x% eligibility minus @*x% interest rate
interest loan + 7 lakhs @ y%
CASE 10 lakhs 2 lakhs 8 lakhs 10 lakhs 2 lakhs (Max 10 lakhs (8 lakhs
IV (@*x% eligibility minus @*x% interest rate
interest loan and 2 @ y% interest
rate) outstanding) rate)
*X=previous interest rate; * Y=prevailing interest rate
12. Officers to provide two undated cheques (in the name of SRF Limited) – one to
cover the loan amount, and the other for the interest component.
13. In case of inter-business transfer, the loan administration and recovery will be
transferred to the new business.
14. In case of NMS to Officer cadre promotions, Officers’ loan policy will become
applicable to the individual with effect from the date of promotion.
i. Under this, existing loan if any, can be topped up as per the existing Officers’
loan policy provided the Officer meets the loan eligibility criteria. This
additional loan top-up will be over and above the regular ‘additional loan’ as
per policy. The rate of interest and tenor in such case will be as per Officers’
policy.
ii. Any interest free/short term loan can be continued till the completion date as
decided at the time of loan commencement.
15. In case of separation, the balance loan amount and interest is adjusted in the full
and final settlement of the Officer. In case the settlement amount is lesser than the
due loan amount, the Officer must pay back the balance loan amount before the
full and final settlement is considered closed.
16. To comply with any tax related requirement, documentation would be required for
two categories of loan –
i. Housing purpose – Purchase/Construction/Renovation
ii. Medical treatment for self or immediate family, including parents.
17. The entire policy (and/or any provisions under the policy) is subject to change with
one month’s notice at the sole discretion of the management. Such changes will
only have prospective effect.
18. All disbursement of loans under this policy will be done only through wire transfer
to the salary account of the applying Officer and at the sole discretion of the
company.
19. The loan policy has been provided to extend financial assistance to Officers in their
times of need, hence it is expected that the money will be used for purpose
specified at the time of taking the loan and not for deriving any monetary benefit
out of it. If found otherwise, the company shall reserve the right to take any
appropriate action against the concerned Officer.
20. The sanction of the loan at any point in time will be at the sole discretion of the
Company.
PROCEDURE 1. All loan requests should be routed through the online loan portal available on Sparsh.
Since loans have a legal binding, some documents will continue to be needed in the
hard as well as soft versions.
2. Two undated cheques and a promissory note (Annexure 2) need to be deposited with
the unit HR representative along with the application and before the disbursement of
the loan.
3. Respective unit HR will verify the eligibility of the Officer for the loan, support
documents, calculate the monthly installment and will confirm it to the Officer. They
will also ensure that total monthly deductions (including the monthly installment) do
not exceed 50% of the net monthly salary.
4. After verifying the Officer’s eligibility and supporting documents for the loan, HR will
sanction the loan and will forward the application to payroll through HRMS for
disbursement.
5. Payroll will transfer the amount to the Officer’s salary account.
6. The Officer is required to submit the self-declaration form (Annexure 3) to the HR
representative within 3 months of taking the loan.
7. The Officer will submit the required documents (as per Annexure 4) to the HR
representative if he/she desires to avail of benefits under the income tax rules.
8. Payroll hands over the statement for claiming deductions under income tax rules
(Annexure 5) from accounts process (in case of purchase of house/
construction/renovation of house).
ANNEXURES 1. Application for loan
2. Promissory Note
3. Self-Declaration form for utilization of loan
4. Documentation required for loan; (4.1) List of prescribed diseases as per IT rule 3A(2),
1962
5. Certificate for tax exemption for housing purpose
PREPARED BY Corporate HR
APPROVED BY
AJAY CHOWDHURY
PRESIDENT AND CHRO
Annexure-1 APPLICATION FOR LOAN
To be filled by Applicant
Purpose of taking loan:
Name: Employee Number:
Band / Designation: Process:
Unit: Date of Joining SRF:
Loan details
Total Eligible amount Period being requested
Amount being requested
To be filled by HR
Amount of Loan granted* Period of Loan*
Rate Applicable* Monthly installment*
Total monthly deductions does not exceed 50% of the net Yes/ No
monthly salary of the applicant
OUTSTANDING STATUS—No dues certificate
There is no outstanding loan amount in the account of the Yes/ No

applicant
Authorized signatory of Payroll/Accounts
DECLARATION:
I declare that I have read and understood the rules governing sanction of loan for the above purpose and
confirm that I shall abide by the same. I have submitted the following:
1. Application Yes/ No
2. Promissory Note, for an amount equivalent to the loan and interest thereon Yes/ No
3. Two cheques Yes/ No
Further, I undertake to submit the self-declaration form (Annexure 3) within 3 months of taking the loan. In
case I am not able to submit self-declaration form within 3 months, I will refund the entire loan to the
company along with an interest of 18% per annum charged for the period for which the loan was taken /
utilized by me.
In the event of my separation from the services of the company for whatever reasons, I undertake to pay
the entire balance amount of loan and interest thereon at once which may be found due on the date of my
resignation or termination/retirement of service from the company. I also authorize the company to recove r
such balance amount from my dues on account of arrears of salary/perquisites/bonus/gratuity/ and /or any
other payment due to me. In case the said amounts are not sufficient to pay the entire balance amount, I
shall be personally liable to pay the said balance amount together with interest @24% per annum from the
date of my separation from the Company.
Date _____________ Signature ________________
Applied by Recommended by Approved by
Date Date Date

Applicant Reporting manager HR
In case of separation, the balance loan amount and interest is adjusted in the full and final settlement of the Officer. The loan is sanc ti o ned at
the sole discretion of the Company.
Annexure-2
PROMISSORY NOTE
On demand, I _______________________________________s/o or d/o____________________ promise to

pay SRF Limited, a Company incorporated under the Companies Act, 1956 and having its registered Office at
Unit No. 236 & 237, 2nd Floor, DLF Galleria, Mayur Place, Noida Link Road, Mayur Vihar Phase I Extn,
Delhi- 110 091___________ (Rupees____________________________________) against the loan taken by
me from the Company, an interest thereon.
Revenue
Stamp
Signature of Officer
WITNESSES:
1. NAME & DESIGNATION:

EMPLOYEE NO. :
ADDRESS:
SIGN:
2. NAME & DESIGNATION:

EMPLOYEE NO. :
ADDRESS:
SIGN:
Annexure - 3
SELF-DECLARATION FORM
I_________________________________, s/o or d/o ________________________ hereby declare
that the loan taken by me has been put to use for either of the following purposes, as per the loan
application made by me:
(Please tick and provide more details against the relevant head):
• Housing related: _________________________________________________
• Education: ______________________________________________________
• Marriage: _______________________________________________________
• Holiday: ________________________________________________________
• Healthcare: _____________________________________________________
• Purchase of white goods/auto: _____________________________________
Date _____________ Signature ________________
Annexure – 4
In case, Officer applies for the loan for the purpose of purchase/construction/renovation of house
or for medical treatment, following documents are required:
A. Housing
Purchase of house/ land including construction of house – Property in the name of the Officer or
jointly with spouse.
▪ Copies of sale deed
▪ Encumbrance certificate
▪ Flat demand letter
Construction of house
▪ Approved housing plan
▪ Corporate tax assessment or completion certificate from an approved authority
Renovation of house
▪ Copy of renovation plan/ final bills/invoice from the renovator(s)
B. Medical treatment for prescribed disease(s) in Annexure 4.1

• Certificate from the doctor about the proof of disease treatment as stated in IT rule 3A(2),
1962
Annexure – 4.1
List of prescribed diseases or ailments as stated in IT rule 3A (2), 1962 for which tax is exempted:
a. cancer;
b. tuberculosis;
c. acquired immunity deficiency syndrome;
d. disease or ailment of the heart, blood, lymph glands, bone marrow, respiratory
system, central nervous system, urinary system, liver, gall bladder, digestive system,
endocrine glands or the skin, requiring surgical operation;
e. ailment or disease of the eye, ear, nose or throat, requiring surgical operation;
f. fracture in any part of the skeletal system or dislocation of vertebrae requiring
surgical operation or orthopedic treatment;
g. gynecological or obstetric ailment or disease requiring surgical operation, caesare an
operation or laparoscopic intervention;
h. ailment or disease of the organs mentioned at (d), requiring medical treatment in a
hospital for at least three continuous days;
i. gynaecological or obstetric ailment or disease requiring medical treatment in a
hospital for at least three continuous days;
j. burn injuries requiring medical treatment in a hospital for at least three continuous
days;
k. mental disorder - neurotic or psychotic - requiring medical treatment in a hospital
for at least three continuous days;
l. drug addiction requiring medical treatment in a hospital for at least seven
continuous days;
m. Anaphylactic shocks including insulin shocks, drug reactions and other allergic
manifestations requiring medical treatment in a hospital for at least three
continuous days.
Annexure – 5
Statement for claiming deductions u/s 80 C (2) (XVIII) & 24(b) of the Income Tax Act
TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. _______________________________________has bee n grante d a loan for the
purchase /construction/renovation of a House property of Rs. ____________(Rupees _______) @ ____p.a. in
respect of following property
Address of the property
The above loan is repayable in __________________. Equated monthly installments (Monthly installme nt)
comprising principal and interest. The total amount of Monthly installment payable from 01.04.20 to
31.03.21* is Rs. ______________. The breakup of this amount into principal & interest is as follows:
Principal Component
Interest Component
Principal Outstanding as on _________________Rs.
Note :
1. Interest is calculated on monthly rests
2. Deduction u/s 24(b) in respect of borrowed capital and deduct u/s 80 C (2) (XVIII) can be claimed subje ct
to fulfillment of conditions prescribed thereon.
For SRF LIMITED
AUTHORISED SIGNATORY
Date:
To be filled by Applicant
Personal details
*The date shall change every year basis the running financial year.

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Policy No : SRF/PP/22/06.

A. Purchase of dwelling (flat/house) or renovation of existing accommodation,

tenor and interest is calculated on a monthly reducing balance.

Annexure-1 APPLICATION FOR LOAN

There is no outstanding loan amount in the account of the Yes/ No

Applied by Recommended by Approved by

Date Date Date

On demand, I _______________________________________s/o or d/o____________________ promise to

1. NAME & DESIGNATION:

2. NAME & DESIGNATION:

I_________________________________, s/o or d/o ________________________ hereby declare

application made by me:

• Housing related: _________________________________________________

• Purchase of white goods/auto: _____________________________________

Date _____________ Signature ________________

B. Medical treatment for prescribed disease(s) in Annexure 4.1

TO WHOMSOEVER IT MAY CONCERN

Address of the property

For SRF LIMITED

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On demand, I ___________________s/o or d/o promise to

I_________, s/o or d/o hereby declare

Date _ Signature ____