Employment
Employee Loan Agreement
Employer-employee lending arrangement detailing loan amounts, interest rates, repayment schedules, payroll deduction authorization, and default procedures for workplace financial assistance programs.
Key Clauses
1
Loan Amount and Purpose
Specifies the principal amount and any restrictions on how funds may be used.
2
Interest Rate
Defines the applicable interest rate or states the loan is interest-free.
3
Repayment Schedule
Establishes payment amounts, frequency, and total repayment timeline.
4
Payroll Deduction Authorization
Authorizes automatic deductions from the employee's paycheck for repayment.
5
Default and Termination
Addresses what happens to the loan balance if the employee leaves or defaults.
Use This Template
When You Need This
- An employer providing a salary advance or emergency loan to an employee
- Formalizing relocation or education loans from employer to employee
- Setting up payroll deductions for employee loan repayment
- Documenting loan terms to comply with employment and tax regulations