Employee Loan Agreement

An Employee Loan Agreement establishes a clear understanding between an employer and an employee regarding a loan provided by the company. It includes key terms such as the loan amount, repayment method, deductions from payroll and any penalties for non-payment. This agreement helps protect both parties and ensures transparency in financial transactions.

Employees borrowing money from their employer complete the employee loan agreement template to confirm loan details, repayment terms and any applicable interest. Employers sign it to document the financial arrangement and enforce repayment policies.

The completed employee loan agreement form is submitted to HR or the payroll department, either in person or through a company’s internal portal. Some businesses require approval before processing the loan.