Employee Loan Agreement Template – UK

Disclaimer

The information provided is intended solely as a general example for illustrative purposes related to personal loan arrangements between employers and employees in the United Kingdom. It does not constitute legal or financial advice and should not replace consultation with a qualified legal or financial professional familiar with UK employment and loan regulations. Laws and regulations may vary depending on the jurisdiction, and adjustments may be necessary to ensure compliance with local requirements. The use of this example is at the user’s own risk, and we accept no liability for any errors, omissions, or consequences resulting from its use without proper professional review.

Please note: This is a sample Employee Loan Agreement template for the UK, intended for reference purposes only. Actual terms should be tailored to specific situations and legal advice.

Employee Loan Agreement (UK) Sample

Parties Involved:

Employer: ACME Corporation Ltd.
Address: 123 Business Park, London, SW1A 1AA

Employee: Jane Doe
Address: 456 Elm Street, London, SW2 5AB

Loan Details:

The employer agrees to lend the employee a sum of £10,000 (ten thousand pounds) as a loan, under the terms specified herein.

Repayment Terms:

The employee shall repay the loan in monthly installments of £500 over 20 months, commencing on the 1st of next month following the agreement date. Repayments shall be made via bank transfer to the employer’s designated account.

Interest:

The loan amount is interest-free unless repayment is delayed beyond 30 days, in which case interest at the rate of 3% per annum shall accrue from the due date until repayment.

Conditions and Covenants:

• The employee agrees to repay the loan in accordance with the repayment schedule.
• In the event of termination of employment before full repayment, the outstanding amount shall become payable immediately.
• The employee shall not use the loan for purposes unrelated to employment or personal needs without prior consent.

Governing Law:

This agreement shall be governed by the laws of England and Wales. Any disputes arising shall be settled in the courts of London.

Additional Provisions:

• Both parties agree to keep the terms of this agreement confidential.
• This agreement may only be amended in writing signed by both parties.
• The employee confirms that the loan amount has been received and understands the repayment obligations.

London, ______________________