Employers each set up their own 401k plan for their employess and are not required to allow loans from their plan, and they are allowed to set certain rules at their discretion.

Employers have every right to require whatever they like within the legal boundaries. The purpose of approval, is often that the employer knows your individual situation. Lets say you only bring home 300 weekly... and have garnishments of child support whatever the case take out, leaving you with only a couple hundred... if you are asking for a loan with payments that will leave you with nothing, the employer is likely to deny the loan, knowing you cannot stop the payments once started, and you cannot live on nothing. It may be your money, but it is in THEIR plan, and they govern what you can and cannot do with it. THe SUmmary Plan Document should state the approvals needed and every detail to your plan.

I've taken out two small loans on two different 401Ks with different plan administrators and I only had to discuss the details with the plan administrator and NOT my employer in either situation. I would call the plan administrator first or go to their website and see what their requirements are for requesting a loan.

Detailed, no biased and to the point.