Loans or employee loans refer to the money lent by the employer to an employee who is in need of the same. Employees usually borrow to meet exigencies or purchase assets. Employee loans can also be offered by third parties like banks and other financial institutions.
The tenure, number of instalments, etc., would be as per the terms of the company. Typically, the instalment amount is deducted from subsequent monthly salaries of the employee. It is one of the non-statutory Salary Deduction in an employee's salary. If the employee resigns before repaying the loan, the company may request the person to settle it immediately or agree to adjust the same in the full & final settlement.