HUMAN RESOURCE POLICY

LOAN POLICY
Module no MAT HR/7.4 Total Pages
Issue Date Initiated by HR
Revision No. & Date Approved by MAT India Management
Subject Loan Policy Supersedes All earlier policies
Applicable to All Employees of MAT India Distribution All employees

LOAN POLICY
PURPOSE
The purpose of the loan-to-employee policy is to provide financial assistance to employees in times of
need or for specific purposes.
It aims to support employees facing unexpected expenses, emergencies, or personal financial
obligations, thereby promoting their well-being and job satisfaction.
SCOPE
This policy covers all the permanent White Collar and Blue Collar employees of MAT Group.
EXCLUSIONS
 Employees currently serving a probationary period.
 GET/Trainees, summer Trainees.
 Employees who have been given notice of dismissal.

ELIGIBILITY
MAT Group employees are eligible to apply for a loan under the following conditions-

 Employees who have completed a minimum of one year of service with the organization.
 A six-month waiting period is required after an employee has repaid and settled all loan amounts
before they can apply for another loan.

Eligible employees can apply for a Loan under the following circumstances-

 Marriage (For Self, dependent brothers/ sisters/ daughters/sons).

 Funeral arrangements for close relatives such as spouse, child, legally adopted child, mother or
father (including in-laws)

VP- HR GMD GM- MINT

For Internal Circulation Only
 HUMAN RESOURCE POLICY

 Hospitalization of self or dependent family members,

 Education expenses for Children and Vehicle purchases except for those who have already availed
the company car benefit.
 Loans may be considered for miscellaneous reasons of a serious nature or in cases of calamity,
subject to approval from management and Corporate HR.

PROCESS

 To apply for a loan, employees need to complete a loan application form (Annexure 1) and submit
it, along with the necessary supporting documents, to their HOD for approval.
 The HOD to make sure that the completed form is sent to the HR Department with the required
authorization.
 The HR Department processes the application by verifying the eligible amount and obtaining final
approval from the Plant Director or Corporate HR, duly signed by their HR Head.
 Respective HR forwards the Loan Application to the Finance department to ensure the clearance
of any previous loan status and proceed with the disbursement process.
 The HR department is responsible for ensuring that employees sign and date the terms and
agreement for repayment as a form of acknowledgment (Annexure-II).
 Upon approval of the loan, the Finance department ensures that the disbursement is to be
processed promptly within a one-week timeframe.

GENERAL GUIDELINES

 Employees are advised to submit their loan application at least 4 weeks before the required date.
 Along with the application, employees are to provide a blank cheque and supporting documents.
 The employees are responsible for bearing any applicable tax liability on the loan amount.
 The employees are liable to repay the loan promptly to the company, with a maximum period of
12 months through equal installments.
 Deductions of installments from the salary to commence from the month following the loan
sanction.

VP- HR GMD GM- MINT

For Internal Circulation Only
 HUMAN RESOURCE POLICY

 To expedite the resolution of any remaining loan arrears, any ex-gratia, bonus, or incentive
payment that is due after the repayment of six installments to be directed towards this purpose.
 As a result, the monthly installments are to be adjusted accordingly to reflect this allocation.
 If an employee desires to repay the remaining balance in a single installment within 12 months,
they can inform the HR department of their intention.
 HR ensures to assist in coordinating the repayment process.
 If an employee voluntarily or involuntarily departs from the organization (through resignation or
termination) before fully repaying their loan.
 In that case, the outstanding amount is to be deducted from the employee's gratuity or final
settlement.
 In the event of an employee's death, the accumulated leave benefits or payable bonus is to be
used to settle the loan.
 Repayment to be exclusively accepted via cheque.
 The repayment of the loan is to be reflected on the employee’s pay slips through payroll
deductions.
 Employees applying for a loan to be granted an amount based on the following matrix:

1 On-roll Employees with less than 1 year of employment in the Company Not eligible to apply.
2 On-roll Employees with 1 year of employment in the company 1 month's Gross Pay
3 On-roll employees with 2 years of employment in the company. 2 month’s Gross Pay
On-roll Employees with 3 years and above employment in the
4 3 month’s Gross Pay
company.

 The respective HR department is responsible for ensuring that all loan applications and related
information are handled with the highest level of confidentiality to safeguard employees'
personal and financial data.
 In the event of a cash-flow crisis, the organization's essential expenses take precedence over the
distribution of loans.

VP- HR GMD GM- MINT

For Internal Circulation Only
 HUMAN RESOURCE POLICY

 Furthermore, in cases of severe illness or bereavement, the finance department to promptly

expedite the disbursement of loans without unnecessary delays.
 The sanctioning of the loan is entirely at the discretion of the management.
 Employees are advised not to consider this policy as a guaranteed entitlement.

MISINFORMATION/ MISUSE:
Any incorrect information furnished by the employee to obtain a loan or use of loan amount for any
other purpose to disqualify the employee from the loan facility forever and would lead to disciplinary
action.

MANAGEMENT DISCRETION

The Management reserves the right to alter/amend/discontinue the policy at its sole discretion.

VP- HR GMD GM- MINT

For Internal Circulation Only
 HUMAN RESOURCE POLICY

ANNEXURE-I

MAT India Technologies Pvt. Ltd.

Date :
LOAN/ADVANCE/IMPREST VOUCHER

Employee Name: Department:

Employee Code: Designation:
Basic Salary: Date of Joining:

Emp. Code in SAP: Last Loan/Adv./ Imp. Taken:

Last Loan Status:
Clearance Date:

Amount Required: in words:

Purpose:

Duration: Monthly EMI:

Eligible For: in words:

Eligibility Status: Eligible

Employee Signature HOD Signature

FOR ACCOUNTS DEPARTMENT

Balance in Imprest A/C: Balance in Advance A/C:

Balance in Loan A/C :

Signature:
Accounts Department

VP- HR GMD GM- MINT

For Internal Circulation Only
 HUMAN RESOURCE POLICY

ANNEXURE-II

1. EMPLOYEE
1.1 I, … … … … … … … … … . (Full names and surname), have applied for a staff loan to the
amount of …………….…... in respect of …………………………………………………………………..
(purpose for which loan was granted);
1.2 I undertake to repay the loan from …………………………. (date), in..............................equal
Installments (maximum 12) of.
1.3 I understand and authorize that in the event of termination of my service, the loan to
be redeemed from my termination benefits, pro rata reduced by amounts already paid;
and
1.4 I undertake, if required by the MAT Group, to attend any counseling program provided
by the employer.
1.5 I elect, for purposes of any correspondence regarding this loan, the following as my
residential address: ………………………………………………………………………….................................
………………………………………………………………………………………………............................................
2. EMPLOYER
2.1 The employer shall provide counseling, if necessary, to the employee;
2.2 The employer shall deduct a staff loan from the employee in twelve equal
installments as indicated in paragraph 1.2 of this agreement; and
2.3 The employer elects, for purposes of any correspondence regarding this loan, the
following as its residential address: …………………………………………………………………………………..
………………………………………………………………………………………………............................................
SIGNATURES:
………………………………………. …………………………………..
EMPLOYEE ON BEHALF OF THE EMPLOYER

WITNESSES:
1. ………………………………………. 1. .…………………………….…….

2. ……………………………………….. 2. …………………………………...

VP- HR GMD GM- MINT

For Internal Circulation Only