PRESENTATION ON

RESIDENTIAL ACCOMMODATION ,
LOANS AND ADVANCES
Types of accommodation provided by the Corporation

Accommodation types extended to employees:

1. Company Quarters
2. Self-Lease
3. Company Lease
4. House Rent Allowance
5. Transit Accommodation

Other policies related to housing:

1. Family Retention
2. Accommodation after superannuation
 Leased Accommodation

Self Lease
Eligibility
 Self Lease for house owned and occupied by employee. Purchased through HBA OR
own sources OR inherited property in the name of the employee OR house/flat
owned by the employees’ spouse (owned either jointly with the employee or solely in
his/her name) may also be taken on self lease.
Rental entitlement
 Notional HRA Amount + HRR amount
 House Rent Recovery (HRR) : X Class - 7.5% , Y Class - 5%, Z Class - 2.5% of Basic Pay
 Agreement for minimum of 10 years in case of workmen and 3 years in case of officers.
Company Lease
Eligibility

 For Officers who do not own a house in a city of their posting.

 Lease period of minimum of 11 months with a maximum of 2 years ( After expiry of 2 years,
extension of lease can be by made for one more year on the existing terms & conditions.)
 If rental value is higher than the Officers’ eligibility, then excess amount recovered from
salary.
 Company lease entitlement

Grade Mumbai X-Class Y-Class Z-Class

A0 32,000 27,000 21,000 16,000
A 36,000 30,000 24,000 18,000
B 41,000 34,000 27,000 21,000
C 45,000 38,000 30,000 23,000
D 66,000 58,000 42,000 33,000
E 72,000 63,000 45,000 36,000
F 80,000 70,000 50,000 40,000
G 1,00,000 80,000 60,000 50,000
H 1,00,000 80,000 60,000 50,000
I 1,13,000 90,000 68,000 57,000
 Facilities needs to be arranged at Transit camps
 One writing table with chair
 One Amirah – Godrej or its equivalent where built-in shelf has not
been provided
 One jug for water
 Two single beds of standard size with mattresses and pillows
 Two chairs
 One dressing table with settee
 Curtains
 One ceiling fan
 AC (split type: 1.0 to 1.5 tones as required)
 TV (only to GMs & above)
 Calculation Part for Company Lease
Example:
The ‘A’ Grade Officer is entitled for Rs.18000/- per month (Maximum).
(If he got posted in “Z’ Class City then the HRA would be @ 8% of B.P.
i.e., considering Rs.60000/- basic, the HRA will be Rs. 4800/-. If house rents are more than Rs.4800/- then the
employee can choose Co. Lease option)
Then, the company will pay Rs.18000/- per month to the Owner of the House/Flat
That means Rs. 18000 X 12 months = Rs. 2,16,000/- (Rupees Two Lakhs Sixteen Thousand only)

Tax payable :
Rs.216000 – Rs.18000 = 1,98,000/-
30 % of Rs.1,98,000/-= Rs.59,400/- per annum will be the tax

Merits/demerits of Company Lease

1) NO HRA will be paid
2) 2.5% of the B.P will be recovered from employee.
3) Tax liability on the employee
4) Good Accommodation at place of posting as and when wish
 FAMILY RETENTION

1. NON-availability of accommodation at the NEW station

2. Completion of academic session for school or college going children (submit brief
details in hardcopy)
3. Illness or Other compelling personal reasons w.r.t. dependents.(submit brief
details in hardcopy)

Accommodation after superannuation

Resignation, dismissal or termination of service - One month

Retirement - Two months. In exceptional cases upto 4 months with the approval
of the ED (HR),
Loans & Advances

Conveyance HBA Emergency Advance for

Advance Advance Law suits

Festival loan to non-officer

employees for
advance purchase of
furniture/household
items
Why provide with loans & advances ?

Improves Employer Branding

Makes Life of Employee at Difficult Location

Easier- Focus On Job

Improves Retention

Welfare measure and not the right of employee

Conveyance Advance – an insight

Type • Interest Bearing

• Both Officers & Non-Officers
Eligibility
• During Probation but After Induction Training.
• For car : As per Slab
Amount • For Motor cycle/scooter/moped :Actual price
paid or on the road controlled price
whichever is less.
• Avg. borrowing rate for last FY (officers)
Interest
• Fixed rate : present 2.5% (non-Officers)
Entitlement & Repayment
Officers Non-Officers
Maximum entitlement Maximum entitlement
P/IR/49 dated
CR/Admn./11/2006 dated
20.02.2019
21.2.2006
CR/Admn./23/2016 dated P/IR/49 dated 20.02.2019
26.12.2016 Grade
Grade Two Wheeler Rs.1.00 lakhs
A0 Rs.4.75 lakhs Grade III to V (IBP Rs.2.20 lakhs
A Rs.5.00 lakhs Division) and Grade IV for four-wheeler
to VI (Ref. Division)
B&C Rs.7.50 lakhs
Grade VII, VIII & Rs.3.85 lakhs
D, E, & F Rs.9.00 lakhs IX
G&H Rs.10.50 lakhs Grade VII, VIII Rs.3.85 lakhs
I Rs.12.00 lakhs Grade IX Rs.4.35 lakhs

Instalments : 150 = 120+30 Instalments : 150 = 120+30

Instalments : 95 = 80+15 Instalments : 95 = 80+15
Points to ponder

 Difference of interest is accounted as taxable perquisite.

 Option for adjustment against gratuity is available(min 100 months of

service remaining)

 Reimbursement of Re-registration expenses, Road Tax and State Entry Tax

on transfer.

 Utilization period : 1 Month (1% penalty otherwise)

 Recovery amount should not exceed 65% of monthly earning.

 Available for Officer on deputation for max of 3 years.

Sale of Vehicle

Prior Sanction of Corporation necessary

Can sell to another employee with transfer of loan

Option for Upgrading

• Sold at more than outstanding amount
• Outstanding to be paid as usual.
• The new vehicle must be insured and hypothecated to the Corporation
• Fund Utilization : within 1 month

Cannot sell to a family member.

Conveyance Repair Advance to
Officers and Non-Officers
 5 years old vehicle
 60 Days Utilization period
 Residual to be refunded, more than INR 500 1% extra to be paid.
 Repayment 36 instalments for 10,000 & 60 instalments for 20,000.
 For two wheeler : 36 instalments for 2,000 & 60 instalments for 2,000 – 5,000
 Rate of interest: same as CA

After three years from the date of drawal of After five years from the date of drawal of
previous car loan/CRA previous car loan/CRA
Car Rs.10,000/- Rs.20,000/-
Two-wheelers Rs.2,000/- Rs.5,000/-
HOUSE BUILDING ADVANCE (HBA)
Eligibility • Continuous service of 3 years

• Outright Purchase
• Instalment purchase
• Purchase of land and construction
Purpose • Construction on pre-owned land
• Extension, enlargement and/or modification
• For repayment of the outstanding loan drawn from Bank or other
Govt./private financial institutions

• Non-Officers : Rs.32.00 lakhs

• Officers Grade A0 : Rs.36.00 lakhs
Entitlement • Officers Grade A to C : Rs.40.00 lakhs
• Officers Grade D to F : Rs.48.00 lakhs
• Officers Grade G and above : Rs.56.00 lakhs
Utilization • 1 Month
Repayment • 25 Years
BICYCLE ADVANCE

Eligibility • Permanente Non-Officers

• Purchase of New Bicycle (3 years)
Purpose • Stolen/Lost (no time limit)
• Broken/Unserviceable (no time limit)
• Actual Price paid or cost of new
Entitlement
(whichever is less)
Utilization • 1 Month
Repayment • 2 Years / 24 installments
EMERGENCY ADVANCE
• Confirmed employee who’s one or more dependent
Eligibility relations should be permanently residing in the area
affected by natural calamity

• To support employee who suffer Financial loss due to

Purpose
natural calamity

Entitlement • 3 months basic pay or 15,000/- whichever is less

Interest • Interest free

Repayment • 24 Instalments
FESTIVAL ADVANCE

Eligibility • Employees of Non-Officer category

• Advance on eve of important
Purpose festivals
• Paid only once a calendar year
Entitlement • 24,000/-
Interest • Interest Free
Repayment • 10 Installments
 ADVANCES
 Conveyance Advance to Workmen

 Execution of documents & other formalities

 Recovery of Conveyance Advance in case of cessation/death of employee

 Advance for Law Suits

 Contravention of Rules
 Conveyance Advance to Workmen

Grade Ceiling (Rs.)

I to III 1,00,000/- (Only two wheeler)
IV to VI 2,20,000/-
VII to IX 3,85,000/-
IX 4,35,000/-

Note:
• To avail 2nd advance, the outstanding loan already taken would be adjusted in the subsequent
advance
• 2nd / subsequent purchasing is not sanctioned until lapse of 03 years from previous withdrawal
• Installment & recovery rules for non-officers is same as officers. However, it shall exceed 65%
of M.I.
• Competent Authority to sanction: GM(HR)
Execution of documents & other formalities
Steps Action
Step – 1 Submission of application thru ESS (Print out to A&W)

Step – 2 While drawing the advance, an agreement as prescribed shall be

executed (Annexure-1)
Step – 3 On completion of purchase, an attested deed of hypothecation as
prescribed shall be signed and submitted within 03 months (Non
payment warrants withholding of maintenance reimbursement)
(Annexure-2)
Step – 4 Gratuity adjustment (Balance service should be less than 100 months)
(Annexure-3)
Step – 5 Vehicle shall be insured against full loss of fire, theft or accident not
less than the balance of advance with the interest accrued
Recovery of Conveyance Advance in case of
cessation/death of employee
Action Rules

Ceases from The entire balance of the loan with interest shall be payable by the
service borrower (except in case of death)

Permanent An amount equivalent to 0.3% of the outstanding loan including

disability / interest thereon as on 1st April every year shall be recovered
Death
Joining other Allowed within time limit of six months to repay the installments as
PSUs remained in service, failing which 1% over & above charging rate
shall be recovered from the date of such cessation till the date of
deposit
Not drawing Alternative arrangement should be made for repayment of monthly
salary installment, else Corporation may enforce recoveries
 Advance for Law Suits
Action Rules
Law Suit Granted for the Law Suit to which Corporation is a party
Advance

Action by No advance shall be provided in case Corporation has initiated legal

Corporation proceedings against an employee

Limitation of Shall be limited as applicable for conduct of suit as the case may be
Advance

Submission of Detailed account for transferring the advance shall be submitted

detailed
account
 Contravention of Rules
Action Rules
Contravention Warrants forfeiture of advance / withdrawal of reimbursement of
of rules
expenses
Departmental Disciplinary action shall be initiated as deemed fit, against such
Action employees who contravened the rules in accordance with relevant
rules of the Corporation

(Standing orders applicable to workmen or CDA Rules applicable to

IOCL Officers)