Staff Loans

What makes you feel good about being an employee? Perhaps it's the fact that you're able to contribute to the growth of a reputable company. Or the enjoyment of receiving your salary every payday. It may also be because you get to avail of staff loans.

What exactly are staff loans? Who are entitled to staff loans? What types of staff loans are available in most companies?

Staff Loans: Companies' Legacy To Their Employees

Manpower is an essential part of every company. Without manpower, there's no one to manufacture and deliver the goods and services that the company offers. Without manpower, there can be no customers, no profit, and therefore, no business. That's why it is very important to make them happy as much as the company wants to make its customers feel valuable.

Staff loans basically mean loans for a company's staff or employees. Loans are debts meant to be paid after a given repayment period. They come in two classifications:

* Secure loans- these are loans that come with a collateral or a guarantee, which is property owned by the borrower that, by virtue of a signed contract, he agrees to cede to the lender in case he fails to repay a portion of the loan come its due date.

* Unsecure loans- meanwhile, unsecure loans do not come with guarantees or collaterals, but they do have credit rating and history evaluations.

What kinds of staff loans do companies usually offer? Here are some samples:

* Educational loan programs for employees' children- employees can apply for loans to pay off their kids' tuition fees or invest for their educational insurance plans.

* Housing, equity, or mortgage loan programs- if you're still renting an apartment or a room, it's high time that you invest for your own home.

* Cash advance or payday loans- if you're in need of cash but payday is still many days away, you no longer have to go to a bank to apply for a payday loan. You can now get it right from your own employer.

* Livelihood and maintenance loans- to help supplement their employees' income, companies can lend capital with which to build their own small businesses.

* Pensioners' loans- retirees can still apply for a loan with the company.

* Emergency or calamity loans- in times of crisis, like you or a family member got hospitalised, you can borrow money for your medical expenses.

* Multi-purpose or employee cooperative loans- these are for employees who want to establish cooperatives.

How To Qualify For Staff Loans

For staff loan applicants, the following prerequisites apply:

* You should be a regular employee- this means that you have passed the initial assessment, training, and probation provided by the company.

* You must have a satisfactory employee record- minimal or no problems with behavior or quality standards.

* You should have cleared all previous unsettled loans- or at least have minimal unsettled loans.

* You should agree to the loan repayment terms- repayment for staff loans have to be coursed through your salary. In other words, there will be salary deductions.