Tips To Write Personal Loan Request Letter To Boss

Even if one is a salaried employee, one can fall short of money from time to time and may, therefore, need a personal loan to meet short-term expenses.

While most people approach banks or non-bank lenders, some salaried employees can also try and approach their employers for extending them a personal loan at terms that may be on a par with or perhaps even better than the market.

Salaried employees may need a personal loan for various reasons, such as:

1. Emergency Expenses:

Personal loans can be used to cover unexpected expenses like medical bills, home repairs, or car repairs.

2. Debt Consolidation:

Salaried employees may choose to consolidate high-interest debt, such as credit card debt, into a single personal loan with a lower interest rate.

3. Home Improvement:

Personal loans can be used to fund home improvement projects like renovations or repairs.

4. Travel or Vacation:

Salaried employees may take out a personal loan to fund travel expenses, such as airfare, lodging, and activities.

5. Education Expenses:

Personal loans can be used to pay for education expenses, such as tuition and textbooks.

Approaching one’s employer for a personal loan may have some advantages, such as:

1. Lower Interest Rates:

If the employer offers personal loans to its employees, the interest rates may be lower than those offered by traditional lenders. This could potentially save the borrower money on interest payments over the life of the loan.

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2. Easier Qualification:

One’s employer may be more willing to lend to them because they know their employment history, income, and other relevant information. This could make it easier for the borrower to qualify for a personal loan through the employer than through a traditional lender.

3. Flexible Repayment Terms:

An employer may be willing to work with the borrower to create a repayment plan that fits their needs and budget.

However, there are also some potential drawbacks to consider. For example, borrowing from an employer could affect the borrower’s relationship with their employer if they have trouble repaying the loan. It’s also important for a borrower to carefully consider the terms and their ability to repay the loan before accepting an offer from their employer or any other lender.

If one must approach one’s employer for the personal loan, then he or she must write a loan application to their boss. If one is planning to write a personal loan request letter to one’s boss, here are some tips that can help:

1. As a first step, one must begin with a polite and professional tone. One must address the boss by their proper title and include a brief greeting.

2. The borrower must state the purpose of their letter upfront. The borrower should clearly explain that they are seeking a personal loan and why they need it. The borrower should be clear and specific about the amount he or she is requesting.

3. The borrower should provide details about their financial situation. They should explain how they plan to repay the loan and the timeline for repayment. The borrower should be honest about their ability to repay the loan and provide any supporting documentation, such as bank statements or a budget plan.

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4. The borrower should make sure to highlight their work history and current employment status. This can help reassure the boss that the borrower is a responsible and reliable employee.

5. The borrower must close the letter with a polite request for their consideration and offer to discuss the matter further in person. The borrower should not forget to thank their boss for their time and consideration.

6. The borrower should remember to keep the letter concise, clear, and professional. The borrower should avoid making emotional appeals or using aggressive language, as this can put their boss in an uncomfortable position.


While approaching your employer can definitely be an option while trying to get a personal loan you should take a final call only after surveying the market thoroughly and from all angles.

You should also consider approaching a well-known lender like IIFL Finance that has enjoyed a strong reputation in the market for a long time now. IIFL Finance makes the entire process—from application to disbursement and then from repayment to the closure of the loan account—hassle-free with minimal paperwork.

IIFL Finance, one of India’s top NBFCs, offers personal loans starting as low as Rs 5,000 with tenure ranging from three months to three and a half years. It also offers some of the most competitive interest rates in the market.