Loan Request Letter to Employer

A loan request letter to the employer is a letter that is written by an employee who is seeking a loan. It is addressed to the employer of the organization, who has the authority to grant a loan. The letter is intended to put forward the loan request to the employer and seek financial help.

The employee may need finances for many reasons, such as house renovations, weddings, education of the children, purchase of shares, investments, etc. One of the options available to an employee is to seek a loan from the company he is working in. Usually, the employee chooses this option over the option of banks or other financial institutions, as the former is less complicated than the latter as well as the chances of the loan being granted are higher in the first choice. 

When an employee wants to apply for a loan, he writes a formal letter, in which he makes a request for the loan allotment. Therefore, this letter is referred to as a loan request letter to the employer. The information included in such a letter may vary depending on the reason and the amount of the loan as well as the creditworthiness of the employee and the company policies. However, the general details included in such letters are:

  • Date.
  • Employee information.
  • Employer information.
  • Request for the loan.
  • The reason behind the loan request along with its justification.
  • Details of the loan being sought, including the amount, requested date, requested payment schedule, requested interest rate, etc.
  • Reference to the attached documents, if any.
  • Contact details for any queries.
  • Gratitude.
  • Salutation and gratitude.

This letter is like a formal communication between an employee and the employer. It provides all the details the employer might need to accept or reject a loan. In addition, if the request gets accepted, it sets the basis of the loan processing. The employer may even reject the request as per his discretion or the company policies. However, if the loan request gets accepted, the employee receives the funding he wants and can use it for the intended purpose. After that, the employee has to repay the loan according to the repayment schedule, as provided by the employer.

Sample Loan Request Letter to Employer




Dear Mr. John,

I am writing this letter to make a loan request for the renovation of my old house.

The house, my family is currently residing in, is the house of my grandfather which I inherited. Its renovation was long due, but I was saving money to get the work done. However, in the meantime, my father got sick, and my savings got spent on his treatment. The renovation cannot be delayed any further, as the house is now in poor condition to the extent that the contractor has told us that if immediate renovation would not be conducted, the house might even fall. I am attaching the contractors’ written report with this letter as well.

Therefore, I need a loan on an urgent basis. I request you to grant me a loan of $[X], payable over a period of 7 years. I contacted the finance department to get the details of the possibilities of the loan repayment schedules and got to know that our company provides the option of a loan to be repaid over seven years at an interest rate of 5%.  I will be very grateful if you provide me this loan by the 1st of April 20XX.

Thank you in advance. Let me know at [X] if you need any further details.


Joe Sheldon.

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