Interest Rate Break for Employees

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Question:

We would like to offer a benefit to our employees by allowing 1.00% off published interest rates. Would this be violating any regulations? Any effect on executive officers and Reg O?

Answer:

A discounted employee loan rate is a common benefit.

215.4(a)(2) of Reg. O carves the exception for you to allow this for executives as well. You just have to ensure they aren't the only ones who can qualify.

First published on BankersOnline.com 8/25/03