Policy: Housing Loan Policy

Dabur (FMCG) – HR Policies

Version: 2.0 Policy: Housing Loan Policy Effective from: 1st October 2010 Next Revision Date: As per circular 1 Objective To facilitate employees to purchase/construct a dwelling unit. 1 Scope All employees of F06 (Territory Manager), F07 (Sr. Sales Officer),F08 (Sales Officer) and F09(Sales Incharge). 2 Policy 2.1 Entitlement Upto Rs. 5,00,000/- 2.2 Disbursement of Loan : 2.2.1 Applications will be invited from eligible employees through circular.

2.2.2 Loan will be disbursed directly through a Financial Institution (FI), as per it’s rules. 2.2.3 The loan application will be appraised by FI and the amount sanctioned will depend on it’s policy/norms 2.2.4 Company will not give any guarantee in case the property papers submitted by the employee to FI are not found suitable. Loan will be sanctioned at the sole discretion of the FI and the company. 2.2.5 Processing fee (as negotiated with designated FI) shall be borne by the employee. 2.2.6 Loan will be sanctioned only if all deductions put together (inclusive of housing loan) do not exceed 50% (excluding Income Tax and Provident Fund deductions) of the monthly gross salary. 3.3 Recovery of Loan : 3.3.1 In 120 EMIs or such EMIs based on date of retirement, whichever is earlier. The deduction from the monthly salary comprising of principal amount and full interest will start from the month of disbursement of loan by FI and will be paid to FI on employee’s behalf, in case, if loan is sanctioned by a designated FI. Employee will submit to HR an authority letter to this effect. If the loan is taken from some other FI (other then designated FI) employee has to make his/her own arrangements for repaying the same. 3.4 Rate of Interest : 3.4.1 As negotiated with designated FI from time to time. 3.4.2 Benefit to the employee will be in the form of subsidy over the interest rate charged by FI@ 4% per annum. 3.4.3 In no case, net rate of interest paid by employee to FI shall be less than 3% per annum (Net rate of interest = interest rate charged by FI minus subsidy of 4%).If such scenario arises, then, subsidy given by the company over the interest rate charged by FI will be accordingly reduced from 4%, so that net rate of interest paid by employee to FI is 3%.

Corporate Compensation Cell - Dabur Dabur (FMCG) – HR Policies

3.4.4 The employee will be compensated for the subsidy over the interest rate charged by FI through a special allowance in monthly salary. This special allowance will be equal to subsidy percentage per annum on principal amount paid during the financial year. This special allowance shall differ from financial year to year and shall continue till the time whole loan with interest has been recovered or the date of leaving of services by the employee, whichever is earlier. Income Tax, if any, will be to employee’s account.

3.5 Eligibility :

3.5.1 Minimum 5 years of service (including probation/training period)with a proven track record of Good contribution.

3.5.2 To be given only once during employment with the company. 3.6 On Leaving: 3.6.1 In case an employee leaves the services of the company before repaying the loan amount, the company will inform FI about the same and the option of the continuing the loan will be with the employee and FI. 3.7 Process : 3.7.1 Housing loan application form (duly approved by Head of Department) is to be filled up. 3.7.2 Completed loan application form is to be forwarded to Corporate HR. 3.7.3 Corporate HR shall approve the loan through a sanction letter. 3.7.4 Employee shall get in touch with the FI for disbursement of loan. 3.7.5 After completion of the documentation, FI shall disburse the loan. 3.7.6 Employee shall intimate Corporate HR alongwith photocopy of following documents about sanctioning of the loan, for availing interest subsidy benefit. 1 Sanction letter of FI. 2 Agreement between FI and employee. 3 Authority letter (in case the loan is through designated FI). 3.8 Insurance: 3.8.1 To safeguard the interest of the family in an unfortunate situation of demise of the applicant it is advisable that the applicant gets comprehensive insurance cover of the equal loan value from an insurance company.

Corporate Compensation Cell - Dabur