HR Loan Request Policy

HR Loan Request Policy

Policy Identification

Policy Effective Date:   Policy Owner:

This document establishes the terms, conditions, eligibility criteria, and administrative procedures governing employee loans issued by the employer. It sets forth the responsibilities of employees requesting loans and of the employer in approving, documenting, administering, and recovering loans.

Scope

This policy applies to all employees as defined below who meet eligibility requirements. Applicable employee groups:

Definitions

"Loan" means any sum advanced by the employer to an employee that is evidenced by a signed repayment agreement and subject to payroll deduction for repayment unless otherwise approved in writing.

"Eligible Employee" means an employee who has completed the minimum qualifying period of employment and satisfies other criteria set forth in this policy.

Eligibility

To be eligible, an employee must normally meet the following minimum requirements:

• Minimum continuous service:
• Be actively employed and in good standing at the time of loan disbursement and during repayment.
• No outstanding delinquent loans with the employer unless otherwise authorized by HR in writing.

Loan Types and Limits

Available loan types (check applicable):
Emergency Relocation Education Payroll Advance Other:

Loan maximum per employee: or percentage of annual pay: %

Interest rate (if applicable): % per annum. Interest, fees, and application of payments will be specified in the loan agreement executed by the employee and employer.

Application and Documentation

Required documentation may include, but is not limited to: written loan application, proof of need or invoices for specific expense types, payroll authorization form, and identification. HR may require additional substantiation.

Loan Request (Employee to Complete)

Payroll Deduction Authorization: I authorize payroll deduction for loan repayment

Employment History (Most Recent First)

Education

References (Professional)

Approval and Administration (For HR Use)

HR Review Complete: Yes   Approved: Yes

Repayment, Default, and Recovery

Repayment will ordinarily be through automatic payroll deductions unless alternate repayment arrangements are approved in writing. In the event of termination of employment, voluntary or involuntary, remaining loan balances become immediately due and payable; the employer may pursue recovery through final pay, payroll deductions permitted by law, administrative offset, or legal action. The employee agrees that the employer may deduct outstanding amounts from wages or final payments to the extent permitted by law.

Tax Treatment and Reporting

Any tax consequences arising from loan issuance, interest, or forgiveness will be the responsibility of the employee as required by applicable law. The employer will report taxable benefits as required by law and will provide any required forms or statements.

Confidentiality and Records

Loan applications and related documentation will be maintained in HR records and treated as confidential to the extent permitted by law. Access is limited to authorized personnel who administer the program.

Equal Opportunity and Employment Status

The employer administers employee loan programs in a manner consistent with its equal employment opportunity policies. Nothing in this policy constitutes a promise of continued employment. Employment remains at-will and may be terminated by either party at any time, unless a separate written agreement states otherwise.

Employee Certification and Authorization

I certify that the information provided in this loan request and attached documentation is true, complete, and accurate. I authorize the employer to verify any information provided, including contacting prior employers and references, and to obtain credit or background information if necessary for loan evaluation. I understand that submission of this form does not constitute approval of a loan and that approval is subject to the terms of this policy and the employer's credit and administrative review.

I further authorize payroll deductions as stipulated in the loan agreement and consent to the employer taking lawful action to recover unpaid balances in the event of default.

Authorization to contact previous employers and references: I authorize   Background check authorization: I authorize

Amendment and Termination of Policy

The employer reserves the right to amend, suspend, or terminate this policy at any time in its sole discretion. Amendments will be effective upon issuance by HR and communicated to employees through standard company channels.

Acknowledgment and Signature

By signing below, I acknowledge that I have read, understand, and agree to the terms and conditions of this HR Loan Request Policy and that the information provided in this application is complete and accurate to the best of my knowledge.

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