Loans

An employee loan, also known as a salary loan or payroll loan, is a type of loan that is provided by an employer to its employees. It is a financial arrangement where the employer lends money to the employee.

Employee loans are often offered as a benefit or perk by companies to assist their employees during times of financial need. The loans can be used for various purposes, such as paying off high-interest debts, covering unexpected expenses, or funding personal projects. The terms and conditions of the loan, including the interest rate, repayment period, and loan amount, are typically agreed upon between the employer and the employee.

Repayment of the loan is usually done through automatic deductions from the employee's salary over a specified period. The repayment terms may vary depending on the company's policy and the agreement between the employer and the employee. Some employers may allow flexible repayment options, while others may require fixed monthly instalments.

It's important to note that the availability of employee loans and the specific terms can vary from one company to another. Some companies may have strict eligibility criteria or impose limits on the loan amount based on factors such as an employee's salary, tenure, and credit history.