HRMates has a secure loan management system which ensures that all loans are sanctioned as per policy and are fully repaid.
- Employees request for Loans against salary
- Employees request for Loans repayment from third party again salary with bank details for repayment
- System validates the loan against policy and sends it for approval and repayment schedule as per policy.
- Repayments can include interest as per policy.
- Repayments are automatically deducted from salary as per schedule. Provision is available to adjust loan repayment while generating salary
- For third party loans bank advise is generated for deposit bank
Once Loan is approved the loan amount cannot be changed, repayment amount and schedule can be changed subject to overall repaid amount being equal to loan amount and interest if any.
Create a new Loan
Click on Add button, Enter the loan Amount, Type of Loan, Date (when the loan was given) and the reason.
Click the Generate Installments button to generate the installments and the dates of repayment. When the installment is repaid the status of Returned field in the grid will automatically update from No to Yes.
Once the advance is saved it cannot be modified or removed at the later stage.
Click on Generate button to add the installments starting First Month. You can manually Edit the installments. Note that HRMates will now allow to save Loan where Amount and total of installments do not match.
Adding new Advance Types
Use Payroll menu → Settings menu → Advance Types grid
You can use the Advance types in Creating a new Advance.
Every Advance type needs a corresponding salary component for deduction as per repayment schedule. Use Payroll builder to add the component and select the advance type as base.