Interest free housing loan to employee

Hi Nikhil

Loan Limit: In my view there is no limit for loan amont.

Documentation wise: you need to take and prepare following:

1. Promisory note,

2. A agreement with respect to loan amont, interest , repayment term, duration of loan and other clause as per your term and conditions.

3. Keep Original documents of property with you.

This would be sufficient  

Hii,

He is just searching for the property and will buy the same as and when appropriate is available.The Company has to relase the payment before the actual purchase happens. Any problem in that sense. We do not have any issue in giving loan without taking any security or property papers.

first of all no problem is company don't want to keep to documents that was just for sake of security.

next is to claim the benefit of interest payment u/s 24 b it is advisable to take loan at the time of registry of property other wise no issue.