The Employee Loan Agreement And Promissory Note is designed for use in the Nigerian business environment where employers wish to provide financial assistance to employees through formal loan arrangements. This document is particularly relevant in situations where companies offer staff loans as part of their employee benefits package or to assist with specific employee financial needs. The agreement incorporates both loan terms and a promissory note to ensure proper security and enforcement mechanisms, complying with Nigerian employment law, financial regulations, and contract law requirements. It includes essential provisions for loan amount, interest calculations, repayment through salary deductions, default remedies, and employment termination scenarios. The document is structured to protect both employer and employee interests while maintaining clarity and enforceability under Nigerian law.

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

2. Background: Establishes the employment relationship and context for the loan request

3. Definitions: Defines key terms used throughout the agreement including Loan Amount, Interest Rate, Repayment Period, and other relevant terms

4. Loan Details: Specifies the principal amount, purpose of the loan, and disbursement details

5. Interest Rate and Charges: States the applicable interest rate, method of calculation, and any additional charges

6. Repayment Terms: Details the repayment schedule, installment amounts, and method of payment (typically through salary deductions)

7. Salary Deduction Authorization: Employee's formal authorization for the employer to deduct loan repayments from salary

8. Promissory Note Terms: Incorporates the promissory note element, including the promise to pay and terms of the note

9. Security and Collateral: Details any security arrangements or collateral for the loan

10. Default and Remedies: Specifies what constitutes default and the consequences/remedies available

11. Employment Termination Provisions: Addresses handling of the loan in case of employment termination

12. General Terms: Standard contract clauses including notices, amendments, and governing law

13. Execution: Signature blocks and execution requirements