ADVANCES

I. HOUSING BUILDING ADVANCE ELIGIBILITY

Five years of continuous service in the regular establishment of the company.

PURPOSES :

i) ii) iii) iv) v)

purchase of land and construction of house thereon. construction of house on land already owned. purchase of ready built house or ownership flat. Repayment of balance amount organisation/financial institutions. of HBA taken from previous

Enlargement/Renovation & Modernisation of living accomodation in an existing house owned by employee.

AMOUNT a) For new construction/purchase of ready built house i) ii) iii) b) 90 months salary/wages; or 100% of cost of construction including that for acquisition of land/100% of cost of the property, as the case may be; or Rs. 7.5 lakhs; whichever is least.

For enlargement of living accommodation in an existing house: i) ii) iii) 30 months salary/wages of the employee; or 100% of cost of enlargement; or Rs.2.5/- lakhs whichever is least.

The actual amount of advance to be sanctioned is determined on the basis of the plans, detailed specifications and estimates to be furnished by the employee within the above mentioned ceiling limits and monthly paying capacity of the employee as per detailed rules in this regard. ADDITIONAL HBA Employees, who have already taken HBA, will be entitled for HBA for one more time, for the purposes of enlargement/renovation/modernization of the existing house taken from HBA. This will be allowed after the lapse of a period of 10 (ten)

years from the date of drawl of the last installment of first HBA, provided the employee pays back the entire outstanding amount of HBA including the principal and the interest to the company before sanction of Second HBA. The ceiling for this advance will be equal to the ceiling applicable in case of HBA for enlargement as per existing rules. Further, it will be ensured that the sum of first and second HBA does not exceed the maximum amount of HBA permissible under the existing rules as on the date of application for 2nd HBA. REPAYING CAPACITY ----------------------------------------------------------------------Length of remaining service Repaying capacity --------------------------------------------------------------------------(i) employees retiring/superannuating after 20 years 50% of wages/salary

(ii)

after 10 years but not later than 20 years within 10 years

60% of wages/salary 66-2/3% of wages/salary

(iii)

----------------------------------------------------------------------Salary/wages for the above purpose means basic pay and personal pay plus dearness allowance and will include pension and pension equivalent of retirement benefits in respect of a re-employed pensioner provided and to the extent the same has been taken into consideration for fixation of his basic pay. The house building advance shall be granted to those employees in whose case the total deduction from the salary amounts to not more than 75% of gross pay. INTEREST: Current interest rates are as follows : ----------------------------------------------------------------------Amount of Advance Rate of interest (PA) (Rs.) (%) (on slab basis) ----------------------------------------------------------------------upto - 1,50,000/7 1,50,001/- - 2,50,000/8 2,50, 001/- - 3,50,000/9 3,50,001/- - 4,50,000/10 4,50,001/- - 5,50,000/10.5 Above 5,50,000/11
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Employees who themselves or their spouses undergo sterilisation operations are entitled to half percent rebate in the HBA rate of interest. REPAYMENT The advance together with interest thereon shall be repaid in full before superannuation/separation from service of the employee by monthly instalments

within a period not exceeding 25 years. Repayment of principal shall be done in 15 years (180 instalments) and interest in 10 years (120 instalments) II. MULTIPURPOSE ADVANCE RULES It has been decided to rename the Festival Advance Rules as MULTIPURPOSES ADVANCE RULES with immediate effect. The amount of advance admissible to an employee shall be equal to one month's basic pay of the employee in a calendar year. The advance will be recovered in 12 equal monthly instalments. III. CONVEYANCE ADVANCE ELIGIBILITY Employees who have completed at least one year of service in the regular establishment of the company. ----------------------------------------------------------------------Category of employees Type of vehicle for which eligible for conveyance advances ----------------------------------------------------------------------All executives W1 & above W0 All employees Car Scooter/motorcycle Moped Bicycle

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AMOUNT OF ADVANCE -----------------------------------------------------------------------------------Sl. Type of First Advance Subsequent advance No. Vehicle ----------------------------------------------------------------------------------------------1. 2. 3. 4. ----------------------------------------------------------------------------------------------1. MOTOR Actual cost of motor Amount of Advance CAR Car; as admissible in Col. OR 90% of cost No.3 reduced by the sale of Maruti (Ordinary/ proceeds of the previous Standard 800 CC vehicle after repayment model), whichever is of previous advance. lower 2. MOTOR CAR (For E6 and above) Actual cost of motor Amount of Advance Car; as admissible in Col. OR 90% of cost No.3 reduced by the sale of Maruti, Zen Lx, proceeds of the previous whichever is lower. vehicle after repayment of previous advance. -do-

3.

SCOOTER/ Actual cost of Scooter/ MOTORCYCLE Motor cycle OR 90% of the cost of Bajaj (Super) 150 CC scooter/ 111.6 CC Bajaj Caliber Motor Cycle, whichever is lower. MOPED Actual cost of Moped OR Bajaj Sunny Zip 60 CC Moped, whichever is lower.

4.

-do-

5.

Actual cost of Bicycle Same as first advance OR Rs. 1000/- whichever is lower. -----------------------------------------------------------------------------------RATE OF INTEREST Current rates of interest are as follows : a) Motor Car 8.5% p.a.

BICYCLE

b)

Scooter/Motorcycle/ Moped/Bicycle 7.5% p.a.

IV.

MEDICAL ADVANCE Employees borne on the regular establishment of the Company including trainees recruited under the Companys own training Schemes are eligible for medical advance for indoor treatment on the basis of nature & likely duration of the ailment/disease, estimates of treatment furnished by the hospital and at the discretion of the competent authority. The medical advance is allowed only in non-notified hospitals.

V.

PERSONAL COMPUTER ADVANCE ELIGIBILITY : All employees in Executive, Supervisory & Workmen (W1 & above) categories who have completed at least one year service in the regular establishment of the company. AMOUNT OF ADVANCE : The maximum amount of advance for purchase of a Personal Computer and/or peripherals to an employee shall be limited to 80% of actual cost of Personal Computer subject to a maximum of Rs.40,000/-. RATE OF INTEREST Rate of interest would be seven per cent (7%) per annum. REPAYMENT The advance will be recovered in not more than 60 equal monthly instalments. And interest in not more than 12 equal monthly instalments thereafter.

VI.

FURNISHING/HOUSEHOLD ITEMS ADVANCE It has been decided to sanction interest free advance for purchase of furniture/Household items once in five years as under : Grade E5 - E7 E1 - E4 Amount (Rs.) 25,000/15,000/-