|
 |
LOANS TO EMPLOYEES TO PURCHASE ESOPs OF THEIR COMPANIES |
Purpose
To assist employees for purchasing shares of their own companies under the Employee Stock Option Scheme (ESOP).
Eligibility
Permanent employees with minimum 2 years service.
Quantum of Loan / Margin
Loan amount not to exceed 90% of the purchase price of the shares or Rs.20.00 lacs, whichever is lower with a cap of 24 months Net Monthly Income(NMI).
Rate of interest
200 bps above SBAR presently @14.75% p.a.
Type of Loan
Demand Loan
Processing fee
Rs.1000 per application
Repayment
Loan should be repaid within a period of 3 years in equated monthly instalments(EMIs), A moratorium period of upto 12 months can be allowed within this 3 year period, during which the interest component should be regularly serviced.
Other Terms and Conditions
The shares shall be held in Demat account and lien marked in our favour. All the shares financed under ESOP to be taken as security. Employer company to give a certificate indicating DPID / Customer ID / Name of account holders and number of shares held and confirming noting of our lien / charge on the holdings.
One of the branches at the centre where the principal office of the Company is situated will be designated to finanlise the arrangement with the Company. |
| |
|
|
