f the family member of a client wants to go abroad for employment then the client can apply for this loan provided that then client is enrolled in the program for the last one year and has a good track record of credit and saving in the center.
Last Updated Date: May 16, 2022
Prime Commercial Bank was founded in September 2007 as the 21st commercial bank in Nepal. It has been classified as an 'A' class financial institution under Nepal's Banks and Financial Institutions Act. The primary motto of this Bank is 'Banking Service to All,' with the 389 total promoters holding 70 percent of the bank's stock. The bank has developed itself at the highest level of financial competitiveness, focusing on offering outstanding service to its customers. The bank has emerged as an emerging player in the financial sector, maintaining excellent relationships with respected clients through an emphasis on excellence in customer service.
An employee loan is money advanced by a business to assist an employee. Similar to personal and business lending, employee loans typically come with an interest rate and repayment schedule. However, employee loan interest rates are usually a small fee to cover the cost of administering the loan program, and any tax liabilities the employer may incur. The employee pays back the loan in accordance with the repayment schedule typically via deductions in their future paychecks. In this way, employee loans can be looked at as an advance on future earnings by the employee. Employees that have received some type of assistance from their employer may be more likely to stick around. Knowing that the employer helped during their time of need and placed faith in them to repay the loan may make employees feel more committed to an employer. This may help with retention and job satisfaction. If an employee is concerned about family medical bills piling up, overdue rent, or other financial concerns, it can make it difficult to focus on work. Lending an employee money to work through these difficulties may help that employee to improve work focus and productivity. Knowing that the employer loaned the money may motivate the employee to work harder, as well. Every situation varies, but if an employee asks for a loan in order to meet regular and recurring obligations like rent and utilities, extending a loan may do more harm than help. If the employee is already having trouble meeting obligations, adding another monthly bill on top of the other obligations may add stress. In this case, recommending financial counseling may be a better option than extending a loan that will likely not be repaid.
Giving loans to employees might actually have some benefits for your business, including:
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