Repayment Method: The repayment method of all loans is through monthly payroll deduction unless otherwise approved by People Management in scenarios of early resignation or contract termination. Termination of Borrower: In case of termination of employment of the borrower all loan amounts are due and payable in full (loan amount) to the organisation. Loan Threshold: The amount of loan offered must be in line with the cadre of the employee and the number of years spent with the organisation. The borrowable amount is 30% of the requesting employee’s net salary per annum. For example; an employee whose monthly net salary is $1000 should be earning an annual net salary of $12,000, so 30% of the annual net salary which is $3,600 will be the loan threshold. This is still subject to the availability of funds and payable within 6 months with a 30% deduction of the loan amount from the monthly salary. However, employees can opt for a lesser repayment duration with a greater percentage deduction from their monthly salary. Note: Up to one loan can be obtained by any employee within a period of 12 months. However, a second loan cannot be approved unless and until the first loan is paid in full. The borrower is responsible for the repayment of the loan, in a timely manner as described in this policy. Failure to do so can lead to disciplinary action including but not limited to legal action. All loan applications should be sent to the People Management team for review, who will then seek the required approval from the Chief Operating Officer. Once approvals are in place, the payment will be processed.
All loans are processed as accounts payable.
The borrower is the employee in whose name the loan is issued.
No category of emergency is stated in this policy. However, management will vet every loan request before approval. Principal Loan Repayment is the sum of money that is loaned to the borrower. It does not include fees and interest if any.
CRITERIAS FOR LOAN OBTENTION
1. During employment within AfriLabs - at least two years after employment confirmation.
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