A potential creditor must be confident in your ability to repay the debt before granting you access to loan instruments. One way to confirm this is to know where you work and how much money you make there. This is where proof of an employment letter for a bank loan comes in.
This is a letter that your employer prepares on your behalf, and its purpose is to inform the bank that you do indeed work for them and earn the amount of money that you claim to. We will look at the letter in more detail in the following sections of this article.
What is Proof of Employment Letter for Car Loan?
A proof of employment letter is a common requirement by a third party to ascertain that you have the necessary income to meet your monthly payment obligations. These payments could be a car loan, rent, or mortgage. The letter confirms your ability to meet certain debt responsibilities, as well as your earnings.
This can be requested by a current or former employee to certify their employment and salary details for a new employer. Many organizations have an official employment verification template that both former and current employees can use to speed up the process.
How to Write This Letter
Here is a step-by-step guide in writing a Proof of Employment Letter for a Car Loan:
Step 1: Use a Company Letterhead
You must use a standard letterhead to communicate the contents of the letter because it is an official communication from a bank. This is the only way the letter will be considered official and thus reliable. The letterhead includes the firm’s address, contact information, the company logo, and other distinguishing features.
Step 2: State the Purpose of Letter
Get right to the point of the letter. You must state the purpose of the letter here. You must reveal every detail that the requester desires in addition to the standard information that a letter of this type should normally contain.
Step 3: Proofread
Finish the letter by signing it and asking whoever is in charge to take appropriate steps to assist the person whose employment details are sought. To make the letter official, print your name on it and then sign it.
What to Include
The following details must be included in a letter of this kind:
- Name of Employee: The letter must include the name of the employee whose information is currently being pursued. This name must be official because it will appear on official state documents.
- Current or Former Job Title: Include the job holder’s title. The title gives the requester a rough idea of the employee’s status in that company.
- Employment Term: Indicate when the employee was employed and when the employment contract will expire or be terminated.
- Remuneration Details: Analyze the employee’s remuneration details. These include the basic pay, overtime benefits (if any), and other perks such as transportation, housing, and medical benefits.
- Number of Hours Worked: How many hours per day does the employee work? And how many hours per week does the same employee work? These details are required in order to provide the bank with a complete picture of the employee’s job security.
Sample and Template
Check out our provided sample and template before drafting your Proof of Employment Letter for Car Loan to help you along the way.
Letter #1: Proof of Employment Letter for Car Loan Template
[City, State Zip Code]
Dear [Mr./Ms. Last Name]
RE: Employment Verification for Car Loan
This is to confirm that ___ (the employee’s name) is a genuine employee of our company. His job title is _________ (job title), and he has been with us for __ (duration of employment) (he began working for us on ___ date).
He currently earns a base salary of ___ (amount of remuneration) per year. In addition to his base salary, he is permitted medical, commuter, housing, and paid vacation, making the total _________ (sum total allowances) per year.
Please accept his application so that he can loan money for a car. That way, he’ll have an easier time moving around our office.
Any assistance given to him will be greatly appreciated. Please contact us at [XXX-XXX-XXXXX] if you have any further questions.
Letter #2: Proof of Employment Letter for Car Loan Sample
February 14, 2020
Mr. John Bravo
Head of Human Resource Department
One Great Logistics,
3400 West Point Blvd.
Oklahoma City, OK 51234
To whom it may concern,
RE: Employment Verification Letter for Car Loan
This is to confirm that Mr. Daniel Ford is a genuine employee of our firm. His title is logistics personnel, and he has been with us for 11 years (he started working for us in July 2009).
He currently earns a base salary of $36,000 per year. In addition to his base salary, he is entitled to medical, public transportation, housing, and paid vacation, totaling $12,000 per year.
Please accept his request so that he can get a car loan. He’ll be able to move around our office more easily this way.
Any assistance given to him will be greatly appreciated. If you have any further questions, please call us at (405) 892-2345.
Mr. John Bravo
Things to Keep in Mind
There are some considerations to make when writing this type of letter. We’ll look at them below:
- Follow the law: The laws that govern these letters vary greatly from state to state and jurisdiction to jurisdiction. You must ensure that you strictly follow the law. That can only happen if you become acquainted with these laws and make the necessary agreements to operate within their specifications.
- Confidentiality: You must maintain strict confidentiality when writing and transmitting sensitive information. These pieces of information are subject to a restrictive code of conduct, which can be stressful throughout.
- Professional Tone: You must use a professional tone. This is supported by the fact that the letter itself is professional and must be interpreted as both serious and professional. Avoid words and pronunciations that are likely to undermine the letter’s persona and sincerity.
Proof of Employment Letter For Different Scenarios
- This is a letter that your employer drafts on your behalf, and its purpose is to inform the bank that you do, in fact, work with them and earn the amount of money that you profess to.
- When writing and conveying sensitive information of this disposition, you must maintain confidentiality at all times.
- Before ending your letter, ensure that you proofread it and edit for any further revisions.
- Keep your proof of employment letter in a professional tone.