CAR LEASE POLICY

Few aspects need to be covered while designing the policy:

1. Duration of Employee in your organization.

2. Eligibility of employee for loan asked for as per the grade or hierarchy
3. Set different loan slabs for different Cadres
4. Duration of Loan
5. Tie up with Bank on certain interest rate.
6. EMI’s all inclusive of interest rate, insurance amount & FBT charges as
applicable.
7. Deductions from the salary depending about the loan amount.
8. Foreclosure of case by settling down with Bank Directly after obtaining NOC
from Company.
9. Transferring of RC’s in employees name…. charges would be borne by employee
only.

Application Form:

1. Application Form Should have all the above stated statements including:
a. Nomination Details
b. Eyewitness Details
c. Security of loan
d. Undertaking from Employee
e. Loan period should not exceed from 36/48 Months
f. Registration Policies
g. Documentation details required
h. Originals would be kept by the Admin-HR

Application Process:

1. One Application form dully filled along with two pass port size Photographs…
2. Form should be approved by the employee TL/TM/DH
3. Performa Invoice/Quotation from the dealers:
A. Should be in the name of Company
B. Corporate Discount should be mentioned as per the availability
C. Insurance Amount should be deducted, as Company should do third Party
insurance.
This should be submitted with the Admin Dept for Further processing.
Bank Process:

1.Bank will process the loan on the mutual agreement with the company on the
prevailing interest rates.
2. Loan Amount shall be disbursed to the dealer directly…
3. Bank shall issue delivery order to the dealer.

Registration Process:

1. Admin Dept would provide the following letters to the dealer:

a. Registration letter to the RTO authority stating that this vehicle is been
taken by the company
b. Allotment letter stating that vehicle is a property of company but allotted
to the user (Emp Name & Designation)
c. Company’s Pan Details
d. Address proof (Electricity or Phone Bill)

Make sure that original document should be in the custody of Admin Dept

1. Sales invoice.
2. Road tax receipt.
3. Original RC.
4. Photocopy insurance cover note.

Plz Note: Employee can keep color photocopy of RC (attested) –accepted by the law
& the original insurance Cover note

In case of Accidents:

1. Admin should produce necessary documents in original if required.

2. In case of any damages, employee can pay after getting approved from Admin on
the submission of estimate budget provided by the authorized dealer.
3. Later the can be claimed from the company.

Foreclosure Of Case:

1. Fore closure can be done with the mutual agreement of employee & bank…
2. Employee need to settle the account with the bank directly
3. Obtain NOC from the company so that RC can be transferred in the Employees
name.
4. Need to get the clearance from the payroll dept.
5. Charges for transferring of RC would be done by employee only.
For Hiring Vehicles:

Company should have pre-approved rates on which Cabs car be hired….

Company should have tie ups with vendors who are willing to services the
company even at the odd hours