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Employees Financial loans to Acquire a Housing Property Policy
Name of Policy
Employees Financial loans to Acquire a Housing Property Policy
Policy Number
I. C - 18
Owners
Human Resources
Original Policy Date
22/08/2020
Cosigners
_______________________
Last Revised Date
_______________________
Other Related Regulatory Rules Laws & Policies Next Scheduled review Date
_______________________
Associated Procedures & Forms (Attachments)
_______________________
Versioning
_______________________
Cycle of Reviews
_______________________

Purpose

To state the procedures, terms and conditions for paying an employee the amount of money he needs, to buy a built house, piece of land or build a house on a piece of land he already owns.


Statement

The University gives financial support to its employees to:

a:  Buy a piece of land

b:  Build a house on a piece of land he already owns.

c:  Buy a house

To obtain the financial loan the following conditions must be satisfied:

1.     The employee must be an employee of the University for a continuous period not less than five years.

2.     The employee must state in writing that he will continue in service at PMU for at least five years after receiving the loan.

3.     The employee must repay the loan in a period of not more than ten years. The agreed period will be stated in the loan contract.

4.     The monthly repayment will not be more than 35% of the salary of the employee unless agreed by the employee and the University Management to be more than 35%.

5.     Until the loan is fully repaid the ownership of the property whether be a piece of land or a house will be in the name of the University.


Procedure
Procedure :

The Employee requesting a loan must be follow the following procedures:

1.     Fill up the Application Form obtained from the Human Resources Department.

2.     The Application to obtain the loan will be submitted to the University Financial Loan Committee chaired by the University President. The Committee will review and approve or disapprove the Application for the loan.

3.     The approved Applications will be forwarded to the Human Resources Department for implementations as per the agreed rules and regulations. This includes, the signing of a Separate Contract with the employee and any other required documents.