EazeWork HRMS provides a feature to manage loans and salary advances which are given to employees. To manage this process you will need to
1. Setup loan heads which you want to provide to your employees - refer article
2. Setup the process for loan request and approval - refer article

Loans are automatically recovered in payroll based on the monthly recovery amount but if an employee wants to prepay the amount he can do so. Refer to article on Prepayment of loans for more details.

As per Indian Income tax laws if an employer gives a loan at an interest rate which is less than the market interest rate then perquisite value is applied on the loan. Refer to write-up on Loans with perquisite for details on loans which are a part of perquisite taxation rules.

From this tab you can create loans for all employees (currently only loans without perquisite are supported). Refer to article on Requesting a loan for details on how an employee can submit a new loan / advance request.

A. New Loan Creation
- Click on "Create New Loan" and provide the details as shown in the popup below

Fill up the details as shown in the popup. All the fields need to be updated.
- Disbursement month is the month in which loan has been disbursed
- Recovery starting month is the month from which the recovery will been started

Note :
- All the details can be edited or loan can be deleted before deduction has started
- Any unpaid loan comes as outstanding amount during the Full and Final process
- Loan creation or Instalment change request created from this tab does not go for approval even if there is an approval workflow in setup
- Monthly deduction amount is calculated automatically based on the inputs and the last month will have the remainder amount if the loan amount is not an integral multiple of the monthly recovery
- If employee wants to pay full or part of the loan amount outside the payroll you can update the details, refer to the article on Updating Prepayment of Loan for more details.
- All the details can be edited or loan can be deleted before deduction has started. If starting month is less than first payroll month we cannot delete or edit even if payroll has not been run.

B. Changing Loan Instalment
Once the deduction of a loan has started in payroll then loan cannot be edited. Instalment can be changed through the Instalment change process. To do so click on "Change Instalment" button.

Any change you make in the instalment using this process will be implemented from next payroll and will be used till the Upto Month. After which the old instalment will be used. The updated instalment will be visible on the table after immediately if created by Payroll Manager.

Employee can request for instalment change, refer to article on Changing monthly loan installment for more details.

To understand how instalment change is handled, consider the following example -

Suppose Instalment = 2000 per month for a loan, deduction start from April-16 and the net amount to be recovered is 10,000, payroll has been processed till July-16. System will deduct Rs 2000.00 month in Aug-16, Sep-16, Oct-16, Nov-16 and Dec-16.

But if Instalment is changed to 1000 upto Sep-16 then system will deduct Rs 1000.00 for Aug-16 and Sep-16 and from Oct-16 onwards the old instalment of 2000 will start getting deducted.

C. Bulk Updation of Loans

If you want to update multiple loans you can use the "Bulk Upload" button to download an excel. Fill up the excel and use the "Upload" button on the popup to upload the excel.

System will check the data for completeness and accuracy. You would be able to download and see errors if there are any.