Employee personal loans, salary advances, and automated payroll installments
Disburse staff loans and schedule automated monthly deduction installments in payroll.
Manage company-issued personal loans and salary advances.
1. Loan Request and Approval: In HR → Loans → Add, enter the employee name, principal loan amount, loan date, repayment start date, and number of monthly installments.
2. Loan Disbursement: Approve the loan and post the disbursement payment voucher from your bank or cash account. The loan is tracked as an Employee Loan Asset.
3. Automated Payroll Deduction: During each monthly payroll calculation, the system automatically inserts the agreed loan installment as a deduction line and reduces the remaining loan balance.
4. Early Settlement: If an employee pays off their remaining loan balance early, record a manual receipt voucher to close the loan record.