Can an FCRA organisation provide loan to their staff? If provided while paying the loan in installments in which account it can be paid? This loan installment can be paid in FCRA utilisation account and how it can be recorded in Accounts? Please clarify this as one staff needed loan for his daughter’s marraige.
No, FC funds cannot be given as personal loan to staff but need to be utilised only for the specific purpose for which they have been granted in the grant contract otherwise it will be construed as diversion of funds and a violation.
CS Sharad Bhargava