Administration Manual - B.E.S.T. Undertaking.

education of children:-
This non-refundable advance is permissible to the extent of 50% of
Employee’s own contribution & NCPF Subscription either for daughter’s
marriage or for post matriculation education of children. This can be availed of
only thrice during the membership of the fund. In order to be eligible for this
advance, the employee should have atleast Rs. 1,000/- to his credit as his own
subscription & his membership must be 7 years in the Fund.
(iv) For payment of L.I.C. premiums:-
The amount is paid from Employees’ own subscription for payment of
L.I.C. premiums every year in cases when policy is assigned by the employees to
the P.F. Trustees. No loan from L.I.C. is permissible when policy is assigned to
the Trustees.
(b) Refundable Advances:-
In the E.P.F. Scheme there is no provision for grant of refundable advances.
However, in the Undertaking, we are giving the refundable advance to the extent of
3 months pay plus D.A. or 1/3 rd of employee’s own contribution & NCPF
Subscription, whichever is less. The amount is recovered in 24 equal installments.
The members can take fresh loan after 16 installments have been recovered. The
outstanding loan installments of 8 months or less are adjusted against the fresh
loan instead of being repaid by employees in cash. The rate of interest on loan is
1% more than the rate at which the interest is credited to member’s accounts. This
temporary loan is granted for :
(1) Medical expenses of self or family;
(2) Religious ceremonies;
(3) To defray overseas passage expenses.
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