EMPLOYEE HOME LOAN POLICY OF TJSB BANK AND AAC LTD

1. EMPLOYEE HOME LOAN

3. STORY OF HOME LOAN
• Back in the early 1990s, the city of seattle faced a challenge. due to the high costs of living in
the city, police and fire department employees were forced to live in surrounding suburbs and
neighbouring cities, resulting in lengthier commutes. Hence proximity—was an issue
• To help solve this, the city of seattle was the first employer to adopt in 1994 the hometown
home loan program, an employer-assisted housing benefit that helps employees of participating
companies become homeowners
• the hometown home loan program helps both employers and employees. it enables employers to
offer a low-cost, high-reward benefit to their overall benefits package, and employees get both
financial help and real estate education to make smarter home buying decisions
Source : Article of LORRI Freifeld ON HOME STREET.COM

4. WHAT IS EMPLOYEE HOME LOAN
It is the facility given by the employer to the employee for
purchase /construction / renovation of a house or a flat

5. PURPOSE
To alleviate an employee's financial stress and the
distraction it might cause in the workplace

6. WHY COMPANY GRANTS HOME LOANS
•It helps in attracting and retaining the employees of the organisation
•It also helps in building a strong employer – employee relationship

7. HOME LOAN POLICY OF TJSB BANK
•ELIGIBILITY CRITERIA :
1. who have total banking service of 5 years in any bank
2. who have completed 1 year service in TJSB bank
3. If both the husband and wife are employed in the same bank,
they shall be eligible for this facility only for one accommodation
SOURCE : MEMORANDUM OF AGREEMENT OF TJSB BANK

8. •TJSB bank grants this type of loan to its employees maximum on 3
occasions
•The staff member who has completed 20 years of service in TJSB
bank is only eligible for loan on third occasion
•Loan is provided on third occasion when the staff member intends to
purchase the better accommodation

9. MAXIMUM LOAN LIMIT AND THE RATE OF
INTEREST OF TJSB
cadre Service equal to or
more than 5 years
and below 10 years
Service equal to or
more than 10 years
and below 15 years
Service equal to or
more than 15 years
and below 20 years
Service equal to or
more than 20 years
Officer in senior
management level
32,00,000 40,00,000 45,00,000 50,00,000
Officer in middle
level management
30,00,000 35,00,000 40,00,000 45,00,000
Officer in junior
level management
20,00,000 25,00,000 30,00,000 35,00,000
peon 15,00,000 18,00,000 20,00,000 25,00,000
Source : Memorandum of Agreement of TJSB bank

10. RATE OF INTEREST APPLICABLE FOR ABOVE
MENTIONED LOAN AMOUNT
CADRE AMOUNT INTEREST RATE
OFFICER IN SENIOR
MANAGEMENT
22,00,000 4 %
OFFICER IN MIDDLE
MANAGEMENT
20,00,000 4 %
OFFICER IN JUNIOR
MANAGEMENT
15,00,000 4 %
PEON 10,00,000 4 %

11. •If any staff member intends to avail this loan facility for purchasing
accommodation in the city or town where he/she is not posted and which
will not be used for self occupancy, then the rate of interest is 8.5 %
charged on the entire loan amount

12. REPAYMENT
•Repayment of loan is done in 300 equated monthly
instalments including interest directly deductible from salary

13. HOUSING LOAN SUBSIDY POLICY OF
ACC LTD
1. Policy :
To provide assistance to employees for purchase of house
2. Purpose :
To reduce the financial burden on management staff
3. Practices :
Employees can obtain home loan directly from any bank of their choice
the loan is admissible to an eligible staff if he/she purchases a house in his /
her spouse’s name only
Source : ACC HR MANUAL

14. •ELIGIBILITY :
oManagement staff will be eligible to get the housing loan subsidy one year after
confirmation
oEmployees are eligible for availing home loan subsidy from the company at the rate of 6
% per annum
oThe maximum loan limit on which the subsidy is payable is mentioned in the individual
perk sheet
oIn case of multiple home loans, the subsidy will be earned on difference between the
entitled maximum limit and the actual amount already availed as housing loan