Loans: Cheap money from the boss

The construction is cheaper with the money from the employer.
When companies provide their employee’s loans, they want to retain valuable employees per se. The most benefit from special conditions. Especially often executives enjoy.

Wollen Employee of Munich HypoVereinsbank ( HVB ) to buy a house or an apartment, they borrow the money usually not from any financial institution, but by their employer. Because of its employees provides loans on special terms to, in their enjoyment normal customers do not come. While some other bank offers a slightly lower interest rate than the six percent per year, the HVB employees pay to their employers. But scores the employee offering Munich with attractive framework conditions: So the bankers can extend the term to 32 years, and can always make unscheduled payments without paying a prepayment penalty, banks often claim in such cases.
Not only banks such as HVB grant their employees loans with special conditions, but also companies in other industries. Especially often executives benefit from the so-called employer loans. So have 15 percent of the executives of German companies the opportunity to take a loan from their employer to complete, figures showed the consulting firm Kienbaum. The average altitude is 25,000 euros, for the employees on average pay five percent interest.

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Similar pattern as in bank loans
The loans usually work along the same lines as a conventional bank loan. The lender, in this case, the employer pays the agreed amount of its employees. This fact paid interest and wipes out the loan over an agreed term.
A popular employer loans are in large corporations, white Kienbaum compensation expert Tom Feldkamp. In small and medium-sized enterprises Loans to employees are usually only on the agenda when the boss sees a specific need for one of his employees. “Entrepreneurs help as employees out of trouble, from which they learn that they urgently need money,” said Feldkamp.
SMEs are compared to corporations and therefore hold back on awarding employees loan because it is a big administrative burden is connected. “The accounting department is having to worry about it, that makes a lot of work,” says Rolf Leuner, an accountant at Rödl & Partner.
Whether consolidated or medium-sized
Whether a corporation or small: Assigns the employer a loan, the employees can look almost always better terms than they would have offered them a bank. Most are particularly low-interest rates or flexible repayment schemes. Often the companies decide not to security, the banks usually ask for a loan.
The motivation of the company to forgive a loan is always similar: “With a discounted loan they want people to bind,” says Kienbaum expert Feldkamp. “Those who have taken out a loan from his employer is ultimately not left the company so quickly.”
But employers loans also have disadvantages for employees. Exceeds the loan a sum of 2,600 euros, they have to pay tax on a cash benefit under certain circumstances. The scale is the market interest rate, which the tax determined by reference to the statistics of the Deutsche Bundesbank here. If the interest rate on the loan including employees, the difference is taxable – minus four percent of the savings interest rate.
The only exception: Each employee can obtain tax-exempt so-called tangible benefits in the amount of 44 euros per month. “But who are exhausted usually already by other services,” says tax consultant Leuner – for example, by eating checks or gasoline vouchers.