Free Employee Loan Agreement Template
Employee Loan Agreement
This Employee Loan Agreement (the "Agreement") is entered into as of [DATE] (the "Effective Date"), by and between [YOUR COMPANY NAME], with its head office located at[YOUR COMPANY ADDRESS] (hereinafter referred to as the "Employer"), and [EMPLOYEE NAME], is a citizen residing at [EMPLOYEE ADDRESS] (hereinafter referred to as the "Employee").
1. Loan Details:
The entity referred to as the Employer herein, consents and commits to the provision of a loan, the financial amount of which totals to Five Thousand US dollars (equivalent to $5,000). This monetary loan is agreed to be given out to the individual who is referred to as the Employee within this context. The disbursement of this aforementioned loan shall be carried out as a one-off payment, with no successive installments to follow thereafter. The date set for the disbursement of this substantial lump sum is determined to be on the 10th day of April, in the year 2050.
2. Repayment Terms:
2.1 Loan Duration
The Employee agrees to repay the loan in full within 24 months from the date of disbursement.
2.1 Installment Amount:
Repayment shall be made in monthly installments of Two Hundred and Fifty dollars ($250) each.
2.3 Payment Method:
Payments shall be made through payroll deduction and shall be deducted from the Employee's salary on the last working day of each month.
2.4 Early Repayment:
The Employee may make early payments or pay off the loan in full at any time without penalty.
2.5 Default and Interest:
In the event of default, the outstanding loan balance shall accrue interest at the rate of 8% per annum from the date of default until the loan is fully repaid.
3. Loan Purpose:
The intention of the loan granted to the Employee by the Employer is to cover their educational expenses. The Employee is in accord about using the loan exclusively for the aforementioned purpose. The Employee is also obliged to furnish evidence of the usage of these funds explicitly for the stated purpose upon the Employer's request.
4. Loan Security:
The Employer is providing an unsecured loan, meaning it does not necessitate or demand any form of collateral from the party who is borrowing the money.
5. Confidentiality:
There is a mutual agreement existing between the two parties that the terms and conditions under which this agreement is being operated will be strictly kept confidential. In line with that agreement, neither party will disclose any information about the loan that has been availed as per the agreement.
The only condition under which a party shall be allowed to disclose such information is upon obtaining written consent from the other party involved. The other occasion on which such information can be disclosed is if the law requires it, mandatory to comply with certain regulations or legal necessities.
6. Governing Law:
The stipulations and framework of this agreement will be determined and interpreted based on the existing legal structures and laws typically enforced within the territorial boundaries of the state of California, and it is under these laws that the agreement will be subject to governance and understanding.
7. Entire Agreement:
This agreement constitutes the entire understanding between the parties concerning the subject matter herein and supersedes all prior agreements, whether written or oral.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written.
[YOUR COMPANY NAME] (Employer)
[DATE SIGNED]
[EMPLOYEE'S NAME] (Employee)
[DATE SIGNED]
