The Company as per its policy can decide on the amount of the loan, method of recovery, the number of installments to recover the loan
Follow the below steps to disburse a loan.
On the Home Page click “Transactions”
Go to “Spend, Loan Management”.
Click “Salary, Loans and Advances”.
Click “Disburse Loans” under “Workflow”.
Click “New” to record a fresh loan.
Enter the Employee “Code/Name”.
Select the “Loan Name” from the drop-down. The loans which you have configured in the loan master will appear here.
Enter the following details:
Loan Amount
Loan Description- details on the loan given.
Disbursement Date
Opening Balance- will be auto-fetched from the amount entered in "Loan Amount".
Repayment Start Date- from when the repayment should commence.
Select the “Recovery Type” from the drop-down if “Yearly/Half Yearly/Monthly/Quarterly”.
Select the “Interest Type” from the drop-down as “Adhoc / Bank Format / Fixed / No Interest / Reducing Balance”.
Adhoc- Here the interest rate can be changed whenever required.
Fixed Interest- the interest will remain the same throughout the loan period.
Bank Format- The interest will be based on the Bank Interest rates.
No Interest- It is a zero-interest loan where you are not required to pay any interest.
Reducing Balance-The reducing interest rate is calculated on the diminishing principal amount. Every month when you pay your EMI, your principal loan amount decreases. Interest will be calculated based on the reduced principal amount.
Enter the following:
Rate of Interest
Number of Instalments
No months paid.
Select “Round off Value”.
If perquisite must be calculated check the box” Yes”.
Check the box “Is External Loan” if the loan repayment needs to be paid to an external agency.
Click “Repayment Schedule”.
The “Repayment Schedule” will be displayed.
Click “Save”.
The video outlining the process is attached for your reference.