Loan Type
Loan Types define the employee lending schemes you offer — each with its own repayment rules. They sit on top of loan allowances, which is what payroll uses to deduct the instalment.
Where to find it
Go to HRM > Settings > Loan Type.
Set up in order
- Create a loan allowance in Allowances Setup.
- Create the loan type here, built on that allowance.
- Employees can then apply through Loan Application.
The loan allowance must exist first. Without it there is nothing for payroll to deduct against, and the loan type cannot be created — this is the step people miss when loans "will not set up".
Field reference
| Field | Description |
|---|---|
| Loan Type Name | The scheme, for example Staff Loan or Vehicle Loan. |
| Loan Allowance | The allowance payroll deducts against. |
| Minimum EMI / Maximum EMI | The permitted monthly repayment range. Applications outside it are refused. |
| Interest | Where the scheme charges interest. |
Advance salary is different
Advance Salary needs none of this setup — it is a short-term, interest-free draw against pay already being earned, not a lending scheme.
Related pages
- Allowances Setup — create the loan allowance first
- Loan Application — applying under a type
- Loan Approve — approving applications
- Advance Salary — the short-term alternative