Dear Professionals,
One of our employee is applying for bank loan and he is asking HR Dept. to give address proof letter from the company as per bank request. Is this legal to give this kind of letters to the employees and if we provide letter is there any chance to claim company if he is unable to pay loan amount

From India, Hyderabad
Bharat Gera
Principal Hr Consultant
Retired Government Servant/advocate
Insolvency N Gst Professional
Training, Motivational Speaker, Writing,


Hi I would not suggest / recommend HR giving any proof of address for the employees on the rolls. It is for the employee concerned to give proof of address. Regards
From India, Mumbai

Aadhar is there,I am sure employee will be having it. Why should company certify address of employee??
From India, Pune
Bharat Gera

Dear Friend,
If bank is requesting then there should be no problem for HR to confirm through a letter your address on their record. But HR should be willing. As technically there is no road block in my opinion.
Warm Regards
Bharat Gera
HR Consultant.

From India, Thane

Yes, Employer can issue letter but must incorporate the following :
a. His address as per proofs provided and recorded in his Service Record is as follows:
b the last line must read "The Company is in no way liable for the loan granted to the Employee, in case he defaults in his repayment"
Hope the above helps.
Thank you,
R. H. Kavarana
HR Manager,

From India, Mumbai

Most of the times, bank ask for such letters from customers when customers don't have any address proof of their current city.
There is nothing wrong in issuing such letters to the permanent employees (build certain amount of reliability and trust over the time) not advice to issue letters to temporary, 3rd party payroll and on contract employees.
You can clearly mention such lines in letters that, as per our records his/her temporary address is so and so and this letter is being issued for the sole purpose of obtaining a loan from bank.

From India, Pune

The request is benign. The Bank cannot fasten any liability on the employer just because the information, as sought, has been furnished.
From India, Kochi
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