HRSINGAPORE Community

Employee loan request

Dear HR Community

We have an employee who has requested a loan from us, the employer.

As this is the first time that we have come across such a request, I seek your guidance on:

1. Whether companies here offer employee loans.

2. If you do, then how much do you offer employees based on their salary and how do you ensure that they repay and don't "disappear" especially if they are foreigners with a work pass?

Thank you for your views and comments in advance.

Rina

 


 

HR Poll: Does your organisation offer loans to employees?

Yes: 39.58%

No: 43.75%

Maybe: 10.42%

Not sure: 6.25%

 


 

REPLIES & COMMENTS: 

Hi Rina, we typically do not offer 'personal loans' but if the employee has a really valid reason, it will be a salary advance and reviewed on a case-by-case basis (so that it does not set a precedence for all employees to come to us for loans after that). - Carol

We are setting up a loan policy and incorporating interest, and repayment agreements. It is up to the company to set the limit of the loan amount. - Erin

The company can consider providing loans as a benefit. - Eva

Our Company does not offer loans as part of the staff benefits to our employees. - Lynn

If you have such a loan policy, you might be provided with a maximum of 30% of your salary or 1 month's salary.

1. Yes, our employee is eligible for staff loan if they are confirmed employees who have completed at least 2 years of service with the Company. 2. The quantum is the maximum loan amount shall not exceed one year's salary excluding the bonus of the employee and the amount shall not be $30K. We are from Finance Industry.

We do not have a loan policy but do offer salary advances on a case-to-case basis with some internal criteria if approached by staff. The 'repayment' is done through a salary deduction of an agreed some (ensuring not more than 25% of the salary) from the 2nd month of advancement. - Cherie

Based on my experience, unless the worker has been in employment for more than 3-5 years at that company with good performance, then we consider approving the loan. I have seen some disappear after getting a loan from the company even with a signed agreement. They are not serious and, in such cases, the company will bear the loss. The loan approval and amount will depend on the reasons given and is based on the monthly payment amount. - Michelle

We do offer salary advance (loan) only for confirmed employees for reasons such as funeral expenses of family members, marriage, and festive occasions (Hari Raya/CNY/Deepavali) normally max 1 month's salary. - Dew

We base the requests on HOD recommendations and usually are for long-serving deserving staff. - Gladys

The company should pass the liability to a third party if interest is charged on the loan, as I don't think it's right to charge interest to your own employee, so passing this over to a licensed organisation is better. - WTP

 


 

Post your reply or comment to this discussion by using the form shown below. Please remember to write the subject as "Employee loan request"

    Full Name*

    Job Title*

    Company or Organisation Name*

    Work Email Address*

    Confirm Your Work Email Address*

    Contact Number*

    Subject*

    Your Message

    Recent HR Community Posts

    Hrsingapore Community

    Community

    Join the HR Community forum to connect with HR peers, share insights, access HR resources, and enhance your expertise. Elevate your HR career today! Continue reading

    Happy Thanksgiving

    Thanksgiving Day

    HR executives can use Thanksgiving Day to strengthen relationships within the workplace and create a positive and appreciative atmosphere for employees. Continue reading

    Cctv Policy

    CCTV Policy

    If my office has a Closed Circuit Television (CCTV), what policy should I set in order not to infringe on the law? Do I need to display signage about the CCTV? Continue reading