- Loan to three employees
- Proper authorization for the loan by the responsible official and in accordance with company policy.
- Supporting evidence as to whether the employees are bonafide employees of the organization.
- A repayment schedule of the loans. The period of repayment should not exceed the employees term of office
- Security given by the employees to secure the loan.
- Evidence to satisfy himself that the debt is good and recoverable at the balance sheet date. This will include evidence of repayments by the employee.
- Interest on the loan should be charged on normal commercial basis or where there is a concession that this is within the company‘s policy.