Facing Job Loss and Loan Repayment Worries: What Are My Options If I Get Fired?

Hi, I work for a reputed MNC and I have taken a special loan where the EMI gets deducted from my salary every month for a total period of 18 months. Now, the issue is due to some complications. My senior gave me a warning that I might end up losing my job, and in that situation, I wouldn't be able to repay my loan amount on time. So, I want to know what options I have and what options the company has because I can only repay the amount if I find another job; until then, I won't be able to repay. Will I get a new job if my company fires me?

Hi, you haven't mentioned the quantum of the loan (how much money you had borrowed).

If the loan amount is on the higher side, your employer will not take the risk of proceeding with termination at this juncture. The only option for the employer is to recover the full and final settlement, excluding the gratuity amount (if applicable). In case of termination, the employer might insist on the repayment of the loan, and they won't mind whether you get a new job or not. Therefore, wherever possible, ask for sufficient time and seek an amicable and proper relieving if you are insisted upon to leave.

Thank you, sir. The loan amount is 2 lakhs, of which 1.5 lakhs is the balance to be repaid. I am afraid of losing my job because I won't be able to repay the whole amount at once. The only way I can repay is in installments.

Hi, Without knowing the exact backdrop, we can't predict your employer's further move.

If your Full and Final Settlement amount is equivalent to or greater than the outstanding loan amount (which is 1.5 Lakhs as you claim), then there will not be any issue. The employer will recover from your full and final settlement. However, if the FFS is meager, then it would be an issue.

By the way, what are the complications you are referring to? Is it due to any misconduct committed by you?

First and foremost, why don't you work towards winning the confidence of your superiors or HOD so that the threat of termination looming over you is cleared? Are you falling short of the optimum performance parameters? Don't hesitate to put in your hard work to prevent job loss. If you find yourself in a situation that seems irreparable, why not seek the help of your superiors, friends, and colleagues to support you? Have confidence, rise to the occasion—you can do it. Believe in yourself, my friend.