All about personal loan in business

The company is not always the scene of a clash between employees and employers. Sometimes, the company even decides to give out personal loans to employees , which allows them to manage their cash flow in the face of unforeseen circumstances and this is an excellent solution to banks and other lending institutions.

For the professional, the advantage lies in benefiting from secure guarantees in terms of debt recovery. This article is intended to enlighten you on the outlines of personal loan in business.

Personal loan in business, or staff loan

The loan to the staff is a credit that the head of enterprise grants to its employees in an exceptional way and whose motive must imperatively be social. Regardless of the reason, the employee can perfectly well apply for this loan. However, the employer is not obliged to access this request.

The totality of the loans granted to the employees constitutes a benefit attributed by the employer because of the belonging of the employee to the company . In principle, personal loans in companies are subject to contributions and social contributions.

However, Urssaf opts for a flexible approach to these benefits for the benefit of employees . This organization recognizes that these benefits are exempt from the payment of social security contributions.

The principle is that any personal loan in an enterprise of an amount greater than € 1,500 or any personal loan allocated at a rate of interest different from the legal rate must be presented by a written act . In the absence of any writing specifically determining the amount of interest and the loaned capital , the employee could perfectly challenge the debt by indicating that it is a gift.

Personal loan in business and proof to provide

Once the employee has applied to the employer, the employer is required to make a decision, whether positive or negative. To do this, he asks the employee to provide information concerning his financial situation .

It should be noted that the employee is entitled to refuse to provide this information. However, the consequence is that the employer can draw the consequences of this refusal and reject the loan application of the employee.

Since the employer is potentially a future lender, he is entitled to ensure the financial capacity of the employee and its solvency, essential to repay the monthly loan .

Consequences of the employer’s acceptance of the personal loan

If the employer decides to grant a personal loan to his employee, even if he is employed on a fixed-term contract , the credit agreement will specify several elements such as the amount, the duration, the terms of repayment of the loan and the possible rate. interest.

On the side of the employer, the consequence of the granting of the personal loan to the employee is the assimilation of this credit to a salary advance . Therefore, if the employee does not repay the loan according to the schedule, the employer can perfectly compensate the late payment with the salary of the employee, within the limit of 1 / 10th of the salary , in accordance with the Article L. 3251-3 of the Labor Code .

Personal business loan and termination of the employment contract

What happens in the case where the employer has granted a personal loan to an employee but the employment contract is subsequently terminated or the employee is on sick leave ? Does this put an end to the personal business loan?

The answer to this question is straightforward: the termination of the employment contract does not affect the loan, unless otherwise agreed in the contract. The latter may include a provision stating that the breach of contract may result for the employee the obligation to pay the full balance remaining due.