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Staff Loan From company

siama
Member
Mon, 06 Nov 2017 11:14:03 PM  (Last updated: Thu, 07 Dec 2017 10:04:07 PM)

Good Day,

                 I wan to enquire about staff loan. Can a company staff who is 6 years in the company apply personal loan for purchasing laptop? Is there any procedure or it's according to the company law. I'm a bit confused finding for the act in the Malaysia company act. Some article it state that approving staff personal loan with interest or zero interest is according to company board of directors? Is that true. Hope i will get the answer. Thank you.

Regards,

Siama

KL Siew
Administrator
Tue, 07 Nov 2017 01:54:30 AM

Can any one of you help siama?

AZ
Member
Fri, 17 Nov 2017 06:56:24 PM

Hai Siama,

I think it depends on your company's discretion. 

Shuen
Member
Thu, 07 Dec 2017 10:04:07 PM

i thnk you can refer to EA section 22 for the advances & section 24 for the deduction for such advances, 

Generally, deduction of loan / advances from salary should not be more than 50 % of employee's. salary.

if without interest - ask employee to sign receive and deducution schedule

If with interest - need approval from Labour Department.