New Loan Application
A Loan Application is used by borrowers to apply for a loan. Through the loan application, borrowers reveal key details about their finances to the lender. The loan application is crucial to determining whether the lender will grant the request for funds or credit.Advance Salary Vs Loan
Here loan is a long term debit and which will be deducted on monthly salary in a constant proportion, whereas the Advance salary is something but the employee acquires a short term, It will be repaid through his salary on the end of the same month. Which is only that month level.
Loan Allowance
In order to use the loan, you have to create allowance(s) with loan type enabled. Example, Home loans, Personal loans, Educational Loans, etc. but some loans may get interest rate applied. So that can be also defined from the allowance setup.
Monthly EMI Range Settings
For each and every employee there is a percentage of salary can be collected as loan, based on that, you can create loan duration. This EMI Percentage can be set common to every employee from HRM Settings. And also you can change it each employee independently from their profile page. By default we provide 40% as EMI.
So, lets select the employee, and input the Loan amount, and Loan type, Periods, which they prefer to repay from salary. And loan date, and EMI start date. Based on this date and period, the end date will be auto calculated.
Once the loan form processed. The amount will be processed as Bank payment to the employee. After that each repayment process from the salary, or they can do manual repay from the Loan inquiry and its loan view.
Also loan has separate PDF, inquiry, View, and Bank payments, and deposits connectivity.