Employee Loan Agreement Philippines

While loans can occur between family members — what`s called a family credit agreement — this form can also be used between two organizations or entities that have a business relationship. Your labor laws may also limit deductions to a percentage of gross compensation, so check with your local laws before lending. The right to usury also determines the amount of interest that can be calculated. For more information on interest rates and zero-interest loans, see our guidelines on bond notes. The credit agreement should clearly describe how the money is repaid and what happens if the borrower is unable to repay. . . .