Writing a Loan Request Letter to Employer [Free Sample]

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loan from employer is an inexpensive way to get money for an emergency. The borrower needs to send a loan request letter to employer that specifies the relevant personal information. 

time frame for the loan

This letter gives the time frame for the loan and may state the reason it is required because it may help convince the lender when he or she is considering the request.

policies for salary loans

An employee should ask the company’s human resources department if there are any policies for salary loans. Any required forms need to be filled out and enclosed with the letter. 

In some cases, it is recommended that employees use salary loans as a last resort after looking into other avenues for a loan. The letter should also state that the request is a one-time occurrence.

Borrower Should Understand

The borrower should understand that asking for a salary loan request could tell his or her employer that the employee is in financial difficulty. This may cause the employer to request a financial review of the employee’s finances.

However, if the amount is not large, and the reasons are given along with documentation that proves the reasons, a salary loan or advance shouldn’t be a problem. 

Salary loans are usually requested for a small amount that can be easily repaid with deductions from the borrower’s salary. The amount of repayment should not be so high as to jeopardize the ability of the employee to meet monthly living expenses. 

Below is a sample salary loan request letter written to an employer and a sample letter written to a bank. 

The letters should be written in formal business style, and if there are any forms required by the bank or employer, they should be included with the letter. It should be sent by certified mail and a copy kept by the sender.

Sample 1 - Loan Request Letter To Employer

Your Name
City, State, Zip Code
Address Of Employee

DATE

Name of Employer
Address of Employer
City, State, Zip Code

RE: Request for loan to be repaid from my salary

Dear Name of Employer:

This is a formal request for a loan of $1500 to be repaid with a deduction from my salary each month. I would like to repay the loan within 12 months. I require the money to pay for renovations to my home.

After a plumbing emergency, the carpet in my living room, dining room and one bedroom was ruined beyond repair. The estimate from the contractor is $1500 to lay new carpet in three rooms.

The carpet has begun to mold, and is considered unhealthy as it pollutes the air. My wife and I have moved in with my mother until we can get the carpet replaced. 

I have enclosed the contractor’s estimate, the mold assessment from the county health department and the required loan forms.

The loan will be repaid with installments that can be deducted from my salary every month until the loan with interest is repaid. I can be reached at Phone Number or Email Address to discuss the terms of the loan.

Thank you for considering my emergency situation.

Sincerely,

Signature
Your Name
List of Enclosures

Sample 2 - Application Letter For Loan Request

Your Name
City, State, Zip Code
Address Of Employee

DATE

ABC Credit Union
Address of ABC Credit Union
City, State, Zip Code

RE: Request for loan to be repaid from my salary

Dear Loan Officer:

I am writing to request a loan for [Amount]. I am in need of financial assistance to [Reason for Loan].

I have been a customer of ABC Credit Union for [Length of Time] and have a good credit score of [Credit Score]. I am confident that I will be able to make the monthly loan payments on time and in full.

I have attached my financial information and employment documents for your review. Please let me know if you require any additional information.

Thank you for considering my loan request. I look forward to discussing this further with you.

Sincerely,

Signature
Your Name
List of Enclosures

Frequently Asked Questions (FAQs)

1. What is a loan request letter to an employer?

Answer: A loan request letter to an employer is a document that an employee writes to their employer asking for a loan. It typically includes details about the purpose of the loan, the amount requested, and the employee’s ability to repay the loan.

2. What information should be included in a loan request letter to an employer?

Answer: A loan request letter to an employer should include the employee’s name, job title, and contact information, the purpose of the loan, the amount requested, the expected repayment period, and the employee’s ability to repay the loan.

3. How do I format a loan request letter to an employer?

Answer: A loan request letter to an employer should be formatted like a formal business letter. It should include a heading with the employee’s name and address, a heading with the employer’s name and address, a salutation, a body that explains the purpose of the loan, the amount requested, and the employee’s ability to repay the loan, and a closing and the employee’s signature.

4. What are some reasons why an employer may deny a loan request?

Answer: An employer may deny a loan request if the employee has a poor credit history, if the employee has not been employed with the company for a sufficient amount of time, if the employee has a history of not repaying loans, or if the employer does not offer loan as a benefit to its employees.

5. What should an employee do if their loan request is denied by their employer?

Answer: If an employee’s loan request is denied by their employer, they should ask for feedback on why the request was denied and try to address any concerns the employer may have. If the employee is still in need of the loan, they may consider other options such as applying for a loan from a bank or credit union.

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