Loans & Advances

Manage employee loans, salary advances, and penalties — from application and approval through automatic monthly repayment via payroll.

Module Overview

The Finance section includes several related areas:

• My Loans — employees view and request their own loans and advances.
• Loan, Advance & Penalty — HR and finance manage all employee loans.
• Loan, Advance & Penalty Ledger — detailed transaction history for every loan.

Types of Financial Support

• Loans — longer-term amounts repaid in monthly installments over several months.
• Salary Advances — short-term amounts recovered in full from the next payslip.
• Penalties — deductions applied for policy violations or agreed-upon charges.

Employee: Requesting a Loan or Advance

1. Go to Finance → My Loans.
2. Submit a request with the amount needed and preferred repayment terms.
3. Wait for manager or HR approval.
4. Once approved, the amount is disbursed and repayment begins automatically.

HR / Finance: Approving Loans

1. Open Finance → Loan, Advance & Penalty.
2. Review pending requests — check eligibility and amount.
3. Approve or reject the request.
4. On approval, set the installment amount and repayment schedule.

Automatic Repayment

When payslips are generated each month, active loan installments are deducted automatically. Employees can track their remaining balance under My Loans and in the ledger.

Early Settlement

Employees can pay off a loan early. HR marks the loan as settled in the system, and no further installments are deducted.

Loan Reports

Export loan and advance data from Reports → Loan, Advance & Penalty Report for finance and audit review.