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Topic: Personnel management

loan application form
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Loan application form

Loan application form

Our loan application form asks the employee to specify the type and purpose of loan requested from you, the amount they wish to borrow and the date it’s required. They also need to provide further information relating to their previous loan applications and current company loans. If you do agree to grant a loan, make sure the employee also signs an agreement for loan repayment before you advance the monies.

Types of loan

Our Loan Application Form can be used by an employee to request either an annual season ticket loan or a financial hardship/welfare loan. The former enables the employee to buy an annual travel ticket paid for by you but with the cost then deducted from their wages in equal instalments over a twelve-month period. The latter applies where you’re willing to provide occasional loans to employees on a discretionary basis to help them through financial difficulties or a welfare issue, e.g. debt problems or unforeseen expenses such as the funeral costs of a close relative.

Form provisions

Our form asks the employee to confirm the type of loan requested. Where it’s a season ticket loan, they should provide details of the public transport operator(s) and the starting point for their journey to work. That way, you can cross-check the amount they’ve requested. Where it’s a financial hardship/welfare loan, they’re asked to state the purposes of the loan, so you can then consider whether it’s reasonable to exercise your discretion to grant it. Always adopt a consistent, non-discriminatory approach to any loan applications you receive. The form also asks the employee to state the amount of the loan they require, the date they need it, whether they’ve made any previous loan applications to you and whether they’re currently in receipt of another loan from you. Finally, there’s a declaration of truth for the employee to sign. If the employee has provided false information, not only will you be able to decline their loan application but also you can take disciplinary action against them.

Agreement for loan repayment

If you approve the employee’s loan application, then ask them to sign our Agreement for Loan Repayment. This agreement ensures that deductions from their wages to recover the loan are made lawfully and it also sets out what happens if they leave employment, or cash in their season ticket, before the loan has been fully paid back.

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