Any employee can apply for funding from their employer in the context of the welfare policies that have developed in the private sector. This is a loan classified among the fringe benefits, or “ancillary benefits” that are added to the salary. In addition to funding, these benefits can also be, for example, meal vouchers, a company car, or education and training services.
Personal and finalized loan
Requesting a loan from your employer is always possible. But unlike the assignment of the fifth, which cannot be refused, in the case of intercompany financing, the employer can refuse to grant it . It is therefore more likely to obtain an affirmative answer in medium-large, rather than small, realities. In detail, this is a rare form of both personal and finalized loan : the former has in common the liquidity obtained, while the latter has the motivation. Indeed, the loan application to the employer must be adequately justified. This is an aspect that makes it similar to the finalized loan (tied to a certain expense). Once the go-ahead is obtained, the loan can be disbursed either with company funds or the employer can enter into agreements with traditional credit institutions (banks and financial institutions), sometimes taking on a share of the interest.
Rates and interests
The loan granted by the employer can be of three types. In the first case, the employer can grant us a loan at the mid-market rate; option that can be convenient if we are not entitled to the assignment of the fifth (the employer has less than 16 employees) or if the credit system has denied us a loan. In the second case, you can grant us a loan at a subsidized rate, i.e. reduced compared to the market rate. In this case, the interest rate subsidy makes the loan granted by the employer cheaper than the transfer of the fifth and other forms of personal loan. Finally, you can get an interest-free corporate loan.
In all three cases, from a tax point of view, taxation on loans to employees is cheaper than other loans : only 50% is taxed between the interest rate granted to the worker and the official discount rate, or the average practiced at the time of signing or at the end of each year. Let’s take an example: if the average rate applied on the market of loans similar to those granted to the employee is 3% and the employer pays it at 1%, the taxable difference is 1% on the entire loan, given from (3% – 1%) / 2. As specified by the Revenue Agency, in the case of a mortgage loan, the worker has the right to take advantage of the 19% deduction on interest, relating to the portion remaining at his expense, that is, net of any contribution from the employer.
Usually, large companies have their own corporate loan application form with a logo. But, regardless of the model, the request for financing always contains the same elements : identification data of the employee’s contract, loan amount, repayment period (years and number of installments), reasons for the financing, method of disbursement: the only one since it may be missing that relating to the rate applied which will be determined by the employer as a rule with a letter in which he accepts the loan request.