Payroll → Loan

This feature allows payroll administrators to record, manage, and recover employee loans through payroll.Loans can be given for personal, medical,or any other organization-approved purposes. Common loan types are Emergency Loan, Personal Loan, Medical Loan etc.

• Navigate to Payroll → Advance Salary

• Click the Add button.

• A window pop-up will appear, choose the Employee name and the Loan Name from the dropdown

• Enter the Requested Amount and Loan Tenure. The system will automatically calculate the Annual Interest Rate and EMI and prefill the values in the respective fields.

• Fill all mandatory fields in the form. Click Submit to save.

• The loan will be processed in payroll based on the specified Consideration Date and Loan Type. 

• If it is an Immediate Loan, the amount will be disbursed directly to the employee’s account before the payroll run and will appear as an Intermediate Loan in the payslip. 

• If it is a Salary Pay-Cycle Loan, the amount will be paid along with the regular salary on payday and will be shown under the Earnings section in the payslip.

• To edit an existing record, select the desired entry and click Edit. Make the necessary changes and click Submit. If the payslip has already been generated, the application will not allow any edits.

• To delete an existing record, select the desired entry and click the Delete button. Make the necessary changes and click Submit. If the payslip has already been generated, the application will not allow any delete.

• To approve a loan record, select the entry and click the Status button, then choose either Approve or Reject. The Requested Loan Amount and Approved Loan Amount will be prefilled. If you need to update the approved amount, enter the new amount and click Submit.
  

Fig: Loan Status Update

Fields Description