Penalty on resignation

Sanjeev (Querist) 03 July 2012 This query is : Resolved
I have taken Interest Free Car Loan from my organization for a period of 5 years in year 2010. However I am resigning now in 2012 after servicing the loan (without interest) for period of 2 years 6 months.

Now at the time of resignation my organization is charging penal interest of 18.25% p.a. for period of facility availed.

I want to know legality on following points:

1)Can my organzation charge Penalty on Interest Free loan just because I have resigned from organization?
2) If yes, should it be market rate or the rate on which my organization give other personal loans to employees?

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ajay sethi (Expert) 03 July 2012
what were terms and conditions for sanctionng of loan . was there any cluase that if you leave company befroe 5 years interest would be charged?

Sanjeev (Querist) 03 July 2012
Hi Ajay,

Yes it is mentioned in the policy. But there is no mention from when interest will be charged.

Guest (Expert) 03 July 2012
You have answered yourself on your question. There is no question of mention of period, the date would be the date of loan for charge of penalty as the conditions are violated by you only by not sticking to your post for the specified period on which interest free condition applies.

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