What is a Deferred Loan? Understanding Employee Repayments

Deferred Loan

LOAN

Deferred Loan

Pause loan EMI recovery for specific cycles or employees — useful during probation, unpaid leave, or grace periods.

Deferred EMI
👥 WHO USES THIS
▸Payroll admins managing EMI holds
▸HR handling leave-related deferrals
▸Finance tracking deferred recovery
✨ WHAT YOU'LL ACHIEVE
▸Skip EMI for selected cycles
▸Resume recovery automatically
▸Maintain correct loan schedules

Payroll → Loan → Deferred Loan

Deferred Loan refers to a type of loan where the repayment or deduction of the loan starts after a specific deferment period such as Grace period. If an employee takes a loan with a deferred repayment period of 3 months, their salary will remain unaffected during those 3 months. Once the repayment starts, a fixed amount (e.g., 50000/-) will be deducted monthly from the employee's salary until the loan is repaid.

Users can configure a deferred loan by providing the required information, including the employee's name, the loan name, and the deferment period (in months). Additionally, the user must select the approval authority for the loan and then submit the configuration for processing.



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