Loan to Employees to Purchase ESOPs Of Their Companies

Loan 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 : 225 bps above SBAR presently @15.25% p.a.

Type of Loan : Demand Loan

Processing fee: Rs.2000 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.

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