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Loan Clearance Certificate from Company to Employee Format

Sometimes, the employers sanction loans to their employees on their request. This is generally done to help them overcome their short-term financial crisis, so that they can focus on work and give their best performance. This is one of the employees' welfare measures taken by many companies.

loan clearance certificate from company to employee
An employee may require a loan clearance certificate to be provided to another financial institution where he has applied for sanction of another loan. This proves that there are no pending dues on the loan from the company.

Here are samples of such application letters from employees and loan clearance certificates from employers. These are for your kind reference. Please modify it appropriately.

(Application letter from employee for issue of loan clearance certificate from employer)

Date: _________

(Name of the Officer)
(Name of the Company)
(Office Address)

Sub.: Request for issue of loan clearance certificate

Dear Sir/Madam,

I had obtained a loan from the company earlier under a written agreement. I have paid all the installments of the loan within due dates along with the interest on the principal amount. I request you to kindly issue a loan clearance certificate to me in this regard along with payment receipts.

I am providing hereunder the required information for your ready reference.
Name: ________________
Designation: _________
Department: ___________
Employee Code: ______
Loan agreement date: _______
Loan start date: _______
Loan amount: _________
Interest: ___% p.a.
Installments: ____ months
Loan closing date: _____

I hope the above information will be sufficient for you to provide me with the desired certificate. If there is any more information or documents required from me, please contact me at mobile number __________ or email id _____________.

I need the certificate to provide it to a bank for obtaining a personal loan. Hence, I would highly appreciate your cooperation in issuing the certificate.

Thanking you,
Yours faithfully,

(Name of the Employee)

(Loan clearance certificate from employer)

To Whomsoever It May Concern,

This is to certify that Mr./Ms. (Name of the Employee) is/was working in the _______ Department of (Name of the Company) as a (Designation). He/She had obtained a loan from the company for an amount of (Amount) on (Date) for a tenure of ___ years/months to be repaid in monthly/quarterly installments with an interest of ___% per annum. He/She has paid all installments timely. As on date, there are no outstanding dues on the loan from him/her. The loan is settled and closed.

This certificate is issued to him/her on his/her request for the purpose of submission to (Name of the Organisation).


(Name of the Officer)

Dated _______
Place: ________