Infosys to cancel home loan facility

BANGALORE/CHENNAI: The cup of troubles for tech employees is overflowing. After companies have cut-back on salaries and perks given to employees, Infosys Technologies is planning to withdraw its home loan facility for employees with effect from 1 July, according to an internal mail from the company.

Infosys, which values each employee at nearly Rs 1 crore, has been providing interest free home loans to needy employees for several years. So far over 2,000 employees (with experience of five years and above) have availed the loan facility accounting for a cumulative disbursements of Rs 80 crore, company officials said.

However, later the scheme was converted into an ‘‘interest allowance,’’ wherein a portion of the home loan interest is borne by the company, which could be considered as an equivalent of a perk.