Free Employee Loan Agreement Outline

1. Title and Introductory Clause

• Title: "Employee Loan Agreement"

• Parties Involved: Identify the employer (lender) and the employee (borrower).

• Date of Agreement: Specify the effective date of the agreement.

2. Loan Amount and Purpose

• Loan Amount: State the principal amount being loaned.

• Purpose: Optionally, specify the intended purpose of the loan (e.g., personal use, education, medical expenses).

3. Loan Terms

• Repayment Schedule: Outline the repayment period, including the start and end dates.

• Installments: Specify whether payments are monthly, bi-weekly, or otherwise.

• Interest Rate: State whether interest is applied and, if so, the rate (fixed or variable).

4. Repayment Method

• Payroll Deductions: Indicate if repayments will be automatically deducted from the employee’s salary.

• Alternative Methods: Provide any other acceptable methods of repayment.

5. Late Payment and Default Terms

• Late Fees: Specify penalties for late payments.

• Default: Define what constitutes default and outline consequences, such as:

  • Acceleration of the loan (full repayment due immediately).

  • Deduction from final paycheck.

  • Reporting to credit agencies (if applicable).

6. Termination of Employment

• Address repayment obligations if employment is terminated (voluntarily or involuntarily), including:

  • Immediate repayment of the remaining balance.

  • Options for repayment after termination.

7. Prepayment Terms

• Allowances for early repayment and whether there are any penalties or benefits for prepayment.

8. Confidentiality and Non-Retaliation Clause

• Assurance that the loan agreement and terms will remain confidential.

• A statement that the loan does not influence employment terms or lead to retaliation.

9. Legal Compliance

• A statement confirming the agreement complies with local, state, and federal laws.

• Acknowledgment of adherence to anti-discrimination laws.

10. Amendments and Modifications

• Define the process for amending the agreement (e.g., mutual written consent).

11. Governing Law

• Specify which jurisdiction's laws govern the agreement.

12. Miscellaneous Clauses

• Severability: The invalidity of one clause does not affect the others.

• Entire Agreement: A statement that this document constitutes the entire agreement between the parties.

13. Signatures

• Employer Representative Signature: Include name, title, and date.

• Employee Signature: Include name, title, and date.

• Witness (optional): Space for a witness signature, if required

Agreement Templates @ Template.net