Employee Purpose Loan FAQ

As part of CIBC’s Employee Banking Program, CIBC Bank USA is offering an interest-free, short-term installment loan for your own personal use. Employees can request up to $5,000 and pay the loan back in up to 4 years. To apply, download and complete the Employee Purpose Loan Consumer Credit Application form (PDF, 410 KB) Opens in a new window.. You must email your completed application, from your work email address, to employeebanking@cibc.com Opens your email app.. The loan process will be entirely facilitated online and cannot be opened in-branch or over the phone. You may have one outstanding Purpose Loan at a time. Our Employee Banking Specialists will be assisting you via the Client Support Center.

Just about anything: dream vacation, small home remodel, getting yourself back on your feet after a financial hardship, building your credit and more. We want to enable you to pursue your vision. CIBC Bank USA won’t track your use of proceeds.

Yes, in order to comply with U.S. banking laws and regulations, loan use limitations are imposed. The loan isn’t to be used in the following cases: 

• to be used by anyone other than you, the borrower 
• to transact on behalf of a third party
• to pay off debt at an affiliate entity of CIBC Bank USA or otherwise have proceeds of this loan be transferred to an affiliate entity of CIBC Bank USA
• to purchase CIBC stock
• to pay for post-secondary education expenses 
• for the sale, distribution, marketing or production of medical or recreational marijuana, medical or recreational cannabis or any constituent cannabinoids such as THC, as well as any substance considered to be synthetic cannabinoids — this limitation applies broadly, regardless of whether the activity is conducted by collectives, collective caregivers, co-ops, growers or any other entity or organization
• for the sale, distribution or manufacture of any type of drug paraphernalia
• for any other illegal purpose

No, the Employee Purpose Loan is an individual loan intended for CIBC US Region employees only. Co-applicants, co-signers or guarantors aren’t allowed.

No, only a team of consumer loan underwriters will see your credit score and credit profile. Your income won’t be required or considered in the underwriting process for any reason. Employee privacy is a top priority of CIBC Bank USA. Also, your supervisor or Human Resources won’t be informed if you obtain the loan.

Depending on the volume of applications, you can expect your funds in less than 10 business days. Funds will be disbursed as preferred — internal DDA account, wire or check.

If you would like your Canadian credit profile evaluated for the Employee Purpose Loan, you may provide your Social Insurance Number (SIN) along with your Social Security Number in the designated space on the application. If you choose to provide your SIN and consent, your Canadian and U.S. credit report will be evaluated simultaneously. Based on depth of credit, it will be determined which credit report will be used for underwriting. Please note that providing your SIN is optional and may impact your credit score.

You have multiple options to repay your loan including ACH from an account at CIBC or elsewhere, cash, money order or check. Although a CIBC checking account isn’t a requirement of obtaining the loan, all employees are eligible to participate in CIBC Employee Banking. For more information on current offers for employees, visit the CIBC US Employee Banking page

Yes, just like any other loan, the Employee Purpose Loan will appear on your credit report and your repayment will be factored into your credit rating.

There are no costs associated with obtaining the loan. Late fees will be charged if you fail to pay as outlined in the terms of your note.

Should you leave CIBC Bank USA before you repay the loan in full, the outstanding balance will be subject to a new rate, aligned with CIBC Bank USA’s current unsecured loan products. The rate and payment will increase. All employees have the option to pay off the loan without a prepayment penalty. For reference, as of January 15, 2022, the consumer unsecured loan interest rate is 9.75%. You’ll have the ability to pay off your balance at this time or choose to continue your monthly payment schedule. You’ll receive a letter stating your new monthly payment and terms following your separation from CIBC Bank USA. 

The only way your rate will change is if you leave CIBC Bank USA — voluntarily or involuntarily — during repayment. As explained above, you can choose to pay off your loan balance upon separation from CIBC Bank USA. If you choose to keep making regular payments, your rate will be adjusted to reflect CIBC Bank USA’s current unsecured loan interest rate which is the rate available to the public.  

The answer depends on if you currently have a loan with CIBC Bank USA with a balance greater than $10,000. This includes the aggregate amount of all loans with CIBC Bank USA, including proceeds from the Employee Purpose Loan and any outstanding or future debt with CIBC Bank USA. This amount does not include any mortgage loans sold on the secondary market. If your only debt with CIBC Bank USA is the Employee Purpose Loan, you aren’t subject to a tax consequence, as the loan amount does not exceed $10,000. All employees who receive the Employee Purpose Loan will be subject to aggregate loan balance monitoring. Employees subject to a tax consequence will be notified in conjunction with IRS tax reporting. You are encouraged to consult your tax advisor for additional details.

If you have a “thin credit file” or no credit score at all, there isn’t enough information in your credit history to determine your creditworthiness. Per credit guidelines, CIBC Bank USA will grant you an amount you can repay. For helpful tips on understanding your credit history and improving your credit score, visit the Consumer Financial Protection Bureau website Opens in a new window.

Should you have any questions, call our Client Support Center at 833-824-2287 Opens your phone app. Or email employeebanking@cibc.com Opens your email app.