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Salary advance or loan to employee - which is a better option?

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Hi experts, 

One of my employee requires a one time sum of 1 lakh as loan or advance, for admission of his children in college. This amounts to 5 months salary for him.

From a tax perspective, which is preferable for the employer? 

If given as advance , TDS must be deducted at 10% by employer at time of payment? And if given as loan, perquisite tax of 30% is payable by the employer? 

Kindly clarify on this

 

Thanking you

Richa

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