Confirmation of Employment Letter for Bank

Confirmation of Employment Letter from Bank

Letters Kate

An organization’s employer writes a letter of confirmation of employment for the bank on behalf of an employee seeking a loan. The employee presents this letter, issued by the employer, to the bank to ensure that he is currently employed and has a constant source of income.

As lenders, this confirmation of employment letter is often a requirement of different banks when lending money to employees. The banks seek this letter for various reasons, such as:

  • The bank requires proof of the borrower’s employment status and the source of their income.
  • Suppose the employer is issuing a letter to its employee. In that case, it means that the employee is unlikely to face any financial issues in the future regarding repayment of the bank’s money.
  • The bank wants to minimize the chances of default by ensuring the person can repay the loan and interest.

Many templates are available online and in programs like Microsoft Word, which can be customized to suit the requirements of the employee, employer, and bank for writing this letter. Otherwise, the HR department can prepare the template itself. The information and the details included in this letter may vary, but the general format consists of the following:

  • Date.
  • Details of the employer.
  • Details of the employee.
  • Employment status and income figures of the employee.
  • Reinforcement of the employee’s character.
  • Reinforcement of the employee’s job security and the importance of their role in the organization.
  • Signature.

This letter holds significant importance, as the bank may use it as a basis to determine whether to grant a loan to a specific employee. Sometimes, if the bank is unsatisfied with the details in this letter, it may simply reject the loan request even if the employee fulfills all the other criteria. This means that due attention must be given when preparing this letter.

This document serves as evidence of the employee’s job and income status and is maintained in the employer’s and borrower’s files, which are held by the bank.

Sample Letters

#1

This confirms that John Doe works as the (job title) at XYZ Company. He has been working here since 20XX as a permanent employee. His gross annual salary is (amount).

Please don’t hesitate to contact us if you require additional information about his employment at XYZ.

#2

This letter confirms that XYZ is an employee at ABC Company and holds the position of (job title). He joined the organization in March 20XX as a permanent contract employee. His annual salary, including benefits, amounts to $[X].

If you require any documents to verify his employment with us, please contact the HR Manager at (phone number) or via email (email ID).

#3

We are writing this letter at the request of Miss Jane Doe for her bank loan application. We confirm her employment at ABC Company. Miss Doe has been working with us since January 20XX. She is currently employed as the company’s (job title).

Miss Doe is a full-time employee at our company. Her gross annual salary, combined with additional medical and travel benefits, amounts to $[X]. She has no record of financial liabilities at the organization.

Please do not hesitate to contact us for any clarification regarding this verification. We are available for queries during office hours.

#4

This is to confirm that XYZ is our employee at ABC Company. He has been working with us as a Customer Support agent since 20XX. He works on a part-time contract and earns $[X] monthly.

This letter was provided in response to his request for a bank loan application. All information provided in this letter is accurate and verified by our HR department. For further information, kindly contact us at (phone number/email ID).

#5

Date

Name

Address

To whom it may concern,

I am writing to verify that Mr. John Douglas has been working in our organization as an ‘Assistant Sales Manager’ for one year. He has a contract for two more years, which will most likely be extended, as he is a high performer.

He is not only a good performer but also a sincere and responsible employee. He consistently delivers assigned tasks efficiently and effectively. We consider him our great asset based on his hard work and the importance of his position.

His net yearly salary is $90,000/- and his gross pay is $73,000/-.

Feel free to contact me with any questions at [TEXT].

Regards,

James Mike,

HR Manager,
XYZ Limited.

Confirmation of Employment Letter for Bank

File: Word (.docx) 2007+ and iPad
Size 26 KB

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