Are we desperate to loan him out and no lowere league clubs clammering at the door to take him? If that's the case it says a lot about how he is rated. However, if it's not and he has options then we need to insist that whoever takes him, plays him so that we get him back more experienced and closer to being ready. If he is training/bench warming then he would learn more by staying as I would hope he benefits from better coaching by us than a lower/non league outfit.
We have pretty much had those clauses imposed on us when we've taken players from the PL to gain experience so we need to be stronger in our loaning out deals. It's the same when we have previously had ex-players hurting us and yet ones that we have taken have not been permitted to play against their former or parent club.