Staff Loan Agreements are commonly used by employers in Hong Kong to provide financial assistance to employees for various purposes such as housing, education, or personal needs. This document formalizes the lending arrangement between employer and employee, ensuring compliance with Hong Kong employment and financial regulations. The Staff Loan Agreement typically includes essential details such as loan amount, interest rates, repayment schedule through salary deductions, consequences of default, and provisions for early repayment or employment termination. It's particularly relevant when companies offer employee benefit programs that include financial assistance options, requiring careful documentation to protect both parties' interests and ensure clear understanding of obligations.

1. Parties: Identifies the employer (lender) and employee (borrower) with their full legal names and addresses

2. Background: Brief context explaining the employment relationship and purpose of the loan

3. Definitions: Defines key terms used throughout the agreement

4. Loan Amount and Purpose: Specifies the loan amount, currency, and permitted use of the funds

5. Interest Rate: Details of any interest charged, calculation method, and payment frequency

6. Repayment Terms: Specifies repayment schedule, method (e.g., salary deduction), and payment amounts

7. Employee Covenants: Employee's obligations and commitments regarding the loan

8. Default Events: Circumstances constituting default and consequences

9. Termination of Employment: Impact of employment termination on loan repayment obligations

10. Confidentiality: Provisions regarding confidentiality of the loan arrangement

11. Governing Law: Specifies Hong Kong law as governing law

12. Execution: Signature blocks and execution requirements