This module enables companies which provides loans to define and manage loans.
Employees can request loans, which are then reviewed and approved. For the approved loans,
repayment schedule for the entire loan cycle can be generated and automatic deduction from salary can also be set up.
To create a new Loan Type go to:
Human Resources > Loan Management > Loan Type > New Loan Type
Configure Loan limit and Rate of interest.
Employee can apply for loan by going to:
Human Resources > Loan Management > Loan Application > New Loan Application
In the Loan Application,
- Enter Employee details and Loan details
- Select the repayment method, and based on your selection enter Repayment Period in Months or repayment Amount
On save, Employee can see Repayment Information and make changes if required before submitting.
Once the Loan is approved, Manager can create Loan record for the Employee.
Human Resources > Loan Management > Loan > New Loan
In the Loan,
- Enter Employee and Loan Application
- Check "Repay from Salary" if the loan repayment will be deducted from the salary
- Enter Disbursement Date, Repayment Start Date, and Account Info
- If the amount has been disbursed and status is set to "Disbursed", as soon as you hit save, the repayment schedule is generated.
- The first repayment payment date would be set as per the "Repayment Start Date".
Loan Repayment for Members
- After submitting the document, if the status is "Disbursed" and "Repay from Salary" is unchecked, you can click on "Make Repayment Entry" and select the payments which haven't been paid till date.
- After selecting the rows, you will be routed to Journal Entry where the selected payments will be added and placed in their respective Debit/ Credit accounts.
- On submitting the Journal Entry, "Paid" will be checked in the payment rows of the Repayment Schedule, for which the Journal entry has been created.
Loan repayment deduction from Salary
To auto deduct the Loan repayment from Salary, check "Repay from Salary" in Loan. It will appear as Loan repayment in Salary Slip.