Employee loan - wouldn't be able to repay my loan amount at the time. So I want to know what options I have?

Hi, I work for a reputed MNC, and I have taken a special loan. Whare the emi get 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 at the time. So I want to know what options I have and what options the company have because I can repay the amount only if I find another job; until then, I won't be able to repay. And will I get a new job if my company fires me

Hi,

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

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

Thank you sir the loan amount is 2lakhs in which 1.5 LCS is balance to be repaid iam afraid of losing my job because I won't be able to repay the whole amount at single time the only way I can repay will be 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 or greater than outstanding loan amount ( which 1.5 Lakhs as you claim) then there will not be any issue, employer will recover from your full and final and settlement. However if the FFS is meagre then it would be a issue.

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