For a potential financier to give you access to loan instruments, he must be certain that you will indeed repay the debt. One of the ways to confirm this is to know where you work and how much money you earn there. This is where the employment verification letter for a bank loan comes in.
This is a letter that your employer drafts on your behalf and whose purpose basically is to let the bank know that you indeed work for them and earn the amount of money you claim to. We are going to take an in-depth look at the letter in our subsequent discussions hereunder.
How to Write an Employment Verification Letter for a Bank Loan
Follow the steps below to draft this Employment Verification Letter for a Bank Loan:
Step I: Use a Company Letterhead
Being an official communique from a bank, you have to use a standard letterhead to communicate the contents of the letter. This is the only way in which the letter will be deemed official and hence reliable. The letterhead comprises the address of the firm, the contact details, company logo, and other unique identifiers.
Step II: State the Purpose of The Letter
Get down now to the core of the letter. It is here that you have to state the purpose of the letter. Exactly why are you drafting this letter? Here, you have to reveal every detail that the requester wants over and above the standard details that a letter of this kind ordinarily ought to contain. These include:
- Name of Employee
- Current or former job title
- Period of employment
- Salary amount
- Duties and responsibilities
- Job performance
- Status of employment.
Step III: Proofread and Edit
End the letter well by closing it with your name and asking whoever is concerned to take appropriate steps to help the person whose employment details are sought. Print your name on the letter and then append your signature to make it official.
What to Include
The following details must never miss in a letter of this kind:
- Name of Employee – The letter has to contain the name of the employee whose details are presently being sought. This name has to be official, as it would appear in the official state documents.
- Current Or Former Job Title – Next, specify the title of the job holder. It is the title that gives the requester a rough clue on the status of the employee in that company.
- Period Of Employment – Specify when the employee was hired and when the employment contract is to end or ended (if at all, the contract has already ended).
- Remuneration Details – Break down the remuneration details of the employee. These include the basic pay, the overtime benefits (if available), and other benefits like a commuter, housing, or health allowances.
- Number Of Hours Worked – How many hours in a typical day does the employee work. And how many hours per week does the same employee work? These details are necessary to give you the bank, a complete picture of the job security of the employee.
Employment Verification Letter for a Bank Loan Format
Date
Name
Title
Organization
Address
City, State Zip Code
Dear Mr. /Ms. Last Name:
RE: Employment Verification Letter for a Bank Loan
This is to verify that ____ (name of the employee), is a bona fide employee of our company. His job title is __________ (job title) and has been working for us for ___ (duration of employment) now (he started working for us in ¬____ date when he started working).
At present, he takes home a basic pay of ____ (amount of remuneration) per annum. Besides this basic pay, he is also entitled to medical, commuter, housing and paid vacation, all of which add up to __________ (sum total allowances) per annum.
Any support that may be accorded to him shall be highly welcome. Feel free to reach us on phone XXX-XXX-XXXXX for any further inquiries.
Regards,
Your Name
Sample Letter
Employment Verification Letter for a Bank Loan Sample
Tuesday, July 7, 2020
Mr. David Collins,
Head of Human Resource Department,
Armstrong Logistics,
4800 West Point Blvd.
Oklahoma City, OK 73179
To Whom It May Concern,
RE: Employment Verification Letter for a Bank Loan
This is to verify that Mr. Moses Bennet is a bona fide employee of our company. His job title is logistics personnel, and has been working for us for 11 years now (he started working for us in July 2009).
At present, he takes home a basic pay of $36,000 per annum. Besides this basic pay, he is also entitled to medical, commuter, housing, and paid vacation, all of which add up to $12,000 per annum.
Any support that may be accorded to him shall be highly welcome. Feel free to reach us on the phone (405) 947-8001 for any further inquiries.
Mr. David Collins,
Head of Human Resource Department
Things to Keep in Mind
There are things you have to keep in mind while drafting a letter of this kind. Below, we take a look at them:
Act within the law: The laws that govern letters of these kinds vary considerably from state to state and jurisdiction. You have to see to it that you act strictly within the law. That can only happen if you familiarize yourself with these laws and make appropriate arrangements to operate within their limits.
Confidentiality: You must observe utmost confidentiality when writing and transmitting sensitive information of these kinds. These pieces of information are governed by a strict code of conduct whose violation can land you in trouble.
Professional Tone: The tone you use has to be professional. This is informed by the fact that the letter itself is professional and has to be interpreted as serious and professional in equal stature. Stay away from words and pronunciations that are likely to compromise the character and seriousness of the letter.
Frequently Asked Questions (FAQs)
Follow these steps to request an employment verification request letter:
• Use a business letter format
• Be upfront but polite
• State the purpose of the letter
• Indicate the applicant’s consent
• Specify what you need to know
• Provide your name and contact details
By far, the best way to go about this is to approach the company that the person of interest works for.
There is no law at the moment that mandates an employee to draft a letter of this kind. As such, an employer can technically avoid furnishing this piece of information. The only exceptions are when the request emanates from the federal or state agencies.
Conclusion
We bring our look into the employment verification letter for a bank loan to an end there. As you can see, this is a critical document that ought never to be treated lightly. You have to see to it that you put in the necessary measures and expertise to be able to come up with the most suitable outcome.
