Loan from work – for whom, on what terms

Loans are usually paid out of the help and loan fund or from the company’s social benefits fund if the fund’s regulations provide for such a possibility. The employer decides about the amount of aid granted.

When a larger expense before an employee, e.g. renovation of an apartment, replacement of a car for a new one, or sending Holy Communion to a child, then he begins to wonder where to get the money for. He doesn’t want to take a loan from a bank, much less a parabank because he is afraid of high-interest rates.

Then the loan from the workplace can be the solution

Then the loan from the workplace can be the solution

It is always much more favorable than a bank loan. It is not only about the interest rate, but also about other conditions, e.g. the number of installments or the time of repayment. In addition, often employers do not charge any additional fees for granting such a loan.

When a loan from the help and loan fund. For a company to have such a cash register, there must be at least ten volunteers. They must be people who declare that they belong to such a cash register, and thus first pay the entry fee, and then they will regulate membership fees monthly. In practice, it looks like the employer deducts them from the employee’s salary.

Warning! The amount of the entry fee can be set by the amount (e.g. USD 20 or 50) or as a percentage of the remuneration (e.g. 1% of salary).

However, not only employees can be members of employee loans and assistance funds. They may also include retirees and pensioners regardless of their trade union affiliation. Importantly, trade unions exercise social supervision over these funds.

And what if there are fewer such people?


Then an inter-company employee assistance and loan fund can be created. Only one such cash register can operate in one workplace. Its founders decide on its creation.

They should adopt the statute and then choose the bodies provided for in the statute. It is good to know that members of the relief and loan fund perform their social functions.

On what principles does the help and loan fund work?

Long-term and short-term loans as well as random aid, provided that there is enough money for this, are provided from the loan and assistance fund. You must submit an application to receive such assistance.

Detailed rules for granting loans are always set out in the statute of the credit union. All its members must be familiar with it. The statute must contain first and foremost information on the maximum loan amount (e.g. USD 5,000 or 10,000 or twice or three times the salary).

The status must also inform about who can become a guarantor (as a rule there are only members of the cash register) and in how many installments you can donate money to the maximum and how long the repayment period can be.