Football loan transfer rules: Premier League guidelines, limits & full details

The Premier League may be the land of unlimited funds, but that doesn't stop the savvy operators working at the top from negotiating cut-price deals for players that'll join their club on a temporary basis.

The January transfer window is the opportune time for loan deals to be struck. Perhaps injuries have decimated key areas and a short-term solution must be found, or maybe that exciting young prospect is in need of regular first-team minutes?

There are many reasons why even the richest clubs dabble in the loan market, and here's everything you need to know about such deals.

What is a loan?

A loan deal involves a player joining another club on a temporary basis. At the end of the loan, the player in question will return to their parent club.

How long do loan spells last?

Loan deals are typically short-term. There are situations where an emergency loan could last just a couple of weeks, but the shortest loans are usually six months (January to the summer).

Season-long loans are common, while some players join clubs on two-year loans.

Can clubs buy loan players outright?

Of course, and such deals are becoming increasingly prominent. To spread out costs or delay payments, clubs like to strike loan deals that includes an option or obligation to buy.

An option clause means clubs essentially get a trial run with the loan player in question, as they can decide whether to sign the player permanently. An obligation means the club will purchase the player permanently at the end of their contracted temporary stint. These moves are particularly popular in Serie A.

What are the Premier League rules for loans?

Loan players are not allowed to play against their parent club in the Premier League, but they can compete against them in domestic cup competitions. However, they are not allowed to feature in any domestic cup clash if they've already competed in the competition for another club.

For example, Chris Wood, who joined Nottingham Forest from Newcastle on loan in January, is not allowed to play in Forest's remaining Carabao Cup fixtures this season because he's already featured in the competition for Newcastle.

Regarding other restrictions, new loan rules were introduced ahead of the 2019/20 season by the Premier League. Here they are:

• Clubs may not register more than two players on loan at any one time from other Premier Legaue clubs.
• The maximum number of loans registrable in the same season is four, and, under no circumstances, shall more than one be from the same club at any one time.
• Premier League clubs cannot loan to another Premier League club a player they have acquired in the same transfer window.
• A Premier League club may loan not more than one of its goalkeepers to another Premier League club.