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What HR & Employees Need to Know about Loan Application Letter?

  • personal loan application letter sample
  • 10 min read
  • October 5, 2023


Need of money? Whenever it is required, the only way to adopt is to advance or loan! However, most companies provide loans to employees, when needed. As an employee, if you’re worried about asking for a loan, you need a perfect loan application letter and process for that.

If you are one who wants a loan and, doesn’t know how to ask or how to draft the letter loan application request then
superworks provides a letter format for loan application, which makes the process easy and hassle-free.

So, don’t stress about it. Use personal loan application letter templates to confidently approach your employer and request financial help whenever needed.

Here’s what you need to know about writing an employee loan application letter, including when you need it, what information you need before writing it, examples to look at, what format to use, and a template to help you write your own.

Download Loan Application Letter

Note: You can download directly from here and edit as per your need.

What Is an Employee Loan Application Letter?


A loan application letter for an employee is correspondence an employee writes and submits to the organization as part of the loan application process.

It basically includes,

  • Loan amount

  • Explanation of cause

  • Details about the repayment of the loan

  • Use of funds

When You Need  Loan Application Letter?

Loan application letters are needed in two main situations:

1. You can consider the loan application letter to bank when you want to borrow money from a regular bank and want to show that your business is doing well.

2. You can consider the loan application letter to other organizations or your own organization for a personal loan.

In both cases, you need a perfect loan application letter to bank or organization. Whether you want loan from a third party or bank.

What to Include in While Writing This Letter To Organization?

There are no strict rules while writing this HR document – an application letter for a loan. It’s up to the person who wants the loan to decide what to put in it while approaching. However, a usual loan application has these things:

  • Name

  • Contact number

  • The reason why you need a loan

  • How much amount you want?

  • What you will use the money for?

  • Work history

  • The salary you are earning right now

  • Names of people who can say good things about you

  • Info about your job or business

  • A list of papers that prove what you said.

What Are The Terms And Conditions For Pre-writing Considerations?

Terms And Conditions

Before approaching for the loan, you need to be ready! There are some terms and conditions, pre pre-writing considerations regarding loan application.

  • Before you start, do some homework about the loan you’re getting the loan from.

  • Consider multiple reasons why you are a good fit for a loan.

  • Also, think about what you want to tell them about your project.

  • Write down any questions you might have during the loan application process.

  • Check your credit score and know your rights as you are borrowing money.

Once you’ve done all that, look over everything you’ve written and then collect the papers regarding that. Make sure it makes sense to someone who hasn’t seen your notes or looked at your finances. If you’re applying for a big loan, you’ll usually need to write  loan application letter for that you need to collect sample letter for loan application from company like Superworks. But remember, just the letter alone might not be enough to get you the loan unless you have good credit so check it as well.

Remember these 2 things if you need the loan:

1. Check your personal and business credit scores for loans.

2. Get your financial records together, like your profit and loss statement. However, if you are applying to your company then consider your salary statement.

Read more: An Ultimate Guide Of Easy-To-Use Joining Letter Format For Employee


Want to take a step towards the HR revolution? – Superworks is here!

Access a library of HR letters instantly. Take control of your HR tasks with just one click – download for free! These HR letters are designed to simplify your HR operations.

Transform the way you manage HR tasks within your organization. Take the first step towards a more streamlined HR process.

How To Write Loan Application Letter?

How-To-Write-A-Loan-Application-Letter (1)

Knowing how to write a letter asking for a loan is important, as it helps to borrow money from the employer via HR. Whether you want from the organization or from outside, you can get the loan application letter sample from a good HR software provider and use it for your process.

Writing a loan request letter might seem a bit scary, but download it free or check these steps to write it.

1. Make Header Relevant

The header is very important before writing this letter to your company for a personal loan, you should include these details.

  • You need to add the date, month, day, and year when you’re writing the loan application letter. Make sure the date is correct.

  • Your name is necessary of course. Add your full name, contact info & address. You need to include a mailing address with a work email, a zip code, and your phone number.

  • Mention the name of the organization or person, Usually, it is someone from the finance department, or higher authority, or a bank.

2. Mention The Purpose Or Reason Of The Loan

After you’ve mentioned everything on the header, you need to add the purpose of the loan. So for that, you need to make it clear and short how you’ll spend the money you want from the loan.

Use a tone like convincing when you explain why this is a smart move for your business or project.

3. Add Basic Information About The Job

To write a good personal loan application letter that’s clear, helpful, and convincing, start with a header and a friendly greeting.

Include these things:

  • Your name

  • Your address

  • The name of the person asking for a loan

  • How to contact you

  • A subject line with how much money you want

4. Assure Borrowed Repayment

After you’ve talked about what you’ll do with the loan money, now give them a surety about the repayment. Use facts and good reasons to explain this. You can also mention the history of making smart money decisions to prove you’re responsible with your finances.

  • Explain your plan to repay the loan: You need to describe shortly what is your business or job and how you repay this. Include a timeline and back it up with things in your salary.

  • Show the proof of your money: Sometimes, you’ll need to give proof of your earnings. You need to submit evidence regarding your salary, bank statements, tax papers, etc. Things like bank statements or tax papers can help you prove you have other sources of money.

  • Make yourself seem trustworthy: To get a loan, you need the lender to trust you. You can do this by telling them about your job, showing some ID, and explaining why they can trust you.

5. Closing A Personal Loan Application Letter

It’s important to close the personal loan application letter with wise and grateful words. Be polite and professional to increase your chances of approval. You might even be able to talk about getting a lower interest rate in your loan request letter.

Loan Application Letter Sample

Loan-Application-Letter-Sample (1) (1)

Personal Loan Application Letter Sample

Personal-Loan-Application-Letter-Sample (1) (1)

Wrapping Up With Bonus Offer

Every company should take care of their employees as they provide a personal loan to them. In that case, there are several documents needed and an application letter is one of them. This problem can easily solved by a good HR management tools provider if you don’t want to make any application letter and all. You can directly approach the loan from one of the features of the HR & payroll software. We are here to solve all HR-related problems, so contact our expert to know more! Don’t forget to leverage miss punch functionalities to streamline the loan application process and ensure efficiency.


What is the primary goal of a loan application letter?

The main goal of sending a loan application letter to an employer is to formally request financial help for your required things. It serves to provide a clear and professional explanation of why the loan is needed & when you repay it.

How can I write the loan application letter?

To structure a loan application letter for an employer, begin with a polite greeting and introduction explaining the purpose of the letter. The body of the letter should detail the reason for the loan, specify the desired loan amount, and propose a repayment plan.

From where can I download the personal loan request letter?

You can download this letter from the Superworks website, by getting the HR toolkit access free. You just need to fill out the form and get the document for free.

Written By :

Alpesh Vaghasiya

The founder & CEO of Superworks, I'm on a mission to help small and medium-sized companies to grow to the next level of accomplishments. With a distinctive knowledge of authentic strategies and team-leading skills, my mission has always been to grow businesses digitally. The core mission of Superworks is Connecting people, Optimizing the process, Enhancing performance.

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