Loan Management
This feature requires the Loan Management addon to be enabled. Go to Settings > Addons and enable Loan Management before using these features.
Loan Management provides a complete system for managing employee loan requests, approvals, disbursements, and repayments. This includes configurable loan types, a multi-level approval workflow, EMI calculation, repayment tracking, and reporting.
All Loan Requests
Navigate to Loan Management > All Loan Requests to view and manage employee loan applications.
Viewing Loan Requests
The loan requests list displays:
- Employee name
- Loan type
- Requested amount
- Tenure (months)
- Purpose
- Status
- Submission and processing dates
Creating a Loan Request
- Click Add Loan Request
- Fill in the required fields:
- Loan Type: Select from configured loan types
- Amount: Requested loan amount
- Tenure (Months): Repayment period
- Purpose: Reason for the loan
- Remarks: Additional notes
- Expected Disbursement Date: When the employee expects to receive the funds
- Supporting Documents: Upload any required supporting documents
- Save the request
The system automatically calculates the EMI (Equated Monthly Installment) based on the loan amount, tenure, and interest rate defined in the loan type.
Loan Request Statuses
| Status | Description |
|---|---|
| Draft | Request is saved but not yet submitted |
| Pending | Request has been submitted and awaits review |
| Under Review | First-level review is in progress |
| Approved | Request has been approved (final approval) |
| Rejected | Request has been denied |
| Cancelled | Request has been cancelled |
| Disbursed | Loan amount has been disbursed to the employee |
| Closed | Loan has been fully repaid and closed |
Processing Loan Requests
The loan approval workflow involves multiple levels:
- Review: A reviewer examines the request and moves it to Under Review status
- Approve: The final approver grants approval, moving the request to Approved status
- Disburse: After approval, the loan is disbursed to the employee, changing the status to Disbursed
To reject a request, click Reject from the actions menu and provide a reason.
To cancel a request, click Cancel from the actions menu.
Employee Self-Service
Employees can view their own loan requests and statuses through the My Loans section in their self-service portal.
Loan Types
Navigate to Loan Management > Loan Types to configure the types of loans available to employees.
Viewing Loan Types
The list shows all configured loan types with their key parameters.
Creating a Loan Type
- Click Add Loan Type
- Fill in the fields:
- Name: Loan type name (e.g., "Personal Loan", "Emergency Loan", "Home Loan")
- Code: Unique code for the loan type
- Description: Details about the loan type
- Max Amount: Maximum loan amount allowed
- Interest Rate: Annual interest rate (percentage)
- Max Tenure (Months): Maximum repayment period
- Min Tenure (Months): Minimum repayment period
- Processing Fee: Fee charged for processing the loan
- Processing Fee Type: Whether the fee is a Fixed amount or a Percentage of the loan
- Eligibility Criteria: Conditions employees must meet
- Documents Required: List of documents employees must provide
- Is Active: Whether this loan type is available for new applications
- Save the loan type
Repayments
Navigate to Loan Management > Repayments to track and record loan repayments.
Viewing Repayments
The repayments list shows all scheduled and completed repayments with:
- Employee name
- Loan details
- EMI amount
- Due date
- Payment date
- Payment method
- Status
You can filter by status and date range.
Recording a Payment
- Find the repayment entry in the list
- Click Record Payment
- Select the payment method:
| Payment Method | Description |
|---|---|
| Bank Transfer | Payment via bank transfer |
| Cheque | Payment by cheque |
| Cash | Cash payment |
| Salary Deduction | Automatically deducted from salary |
| Other | Any other payment method |
- Enter the payment details
- Save the payment
Waiving a Repayment
In certain cases, a repayment can be waived. Click Waive from the actions menu on a pending repayment entry.
Repayment Statuses
| Status | Description |
|---|---|
| Pending | Payment is due but not yet recorded |
| Paid | Payment has been received in full |
| Partial | A partial payment has been recorded |
| Waived | The repayment has been waived |
Overdue Repayments
Navigate to Loan Management > Overdue Repayments to view repayments that are past their due date.
This view helps you quickly identify and follow up on missed payments. You can:
- Send Reminder: Send an individual reminder notification to the employee
- Bulk Reminders: Send reminders to all employees with overdue repayments at once
Reports
Navigate to Loan Management > Reports for loan analytics.
Summary Report
Navigate to Reports > Summary for an overall view of the loan program, including total disbursed amounts, outstanding balances, and repayment statistics.
Outstanding Loans Report
Navigate to Reports > Outstanding Loans to see all currently active loans with their remaining balances.
Overdue Payments Report
Navigate to Reports > Overdue Payments for a detailed breakdown of all overdue repayment entries.
Disbursement Report
Navigate to Reports > Disbursement to view loan disbursement history, including amounts, dates, and employee details.
Settings
Navigate to Loan Management > Settings to configure module-level settings for the loan management system.
Settings are organized into sections and allow you to customize the behavior of the loan module to match your organization's policies.
Next: Learn about Disciplinary Actions to manage warnings and appeals, or continue to HR Policies for policy management and acknowledgments.