How to Create a Loan? #
- If any employee wants to apply for a Loan and advance, go to Setup -> Request -> Loan & Payment.
- Click on “Create a New” in the top right corner.
- Fill in the required fields that appear on the screen and click Save.
What we can do here:
- Search employees for which you want to add a loan, Advance, or provident funds. Then add the description.
- Select Loan, Advance, or Provident fund of loan type.
- Loan Recovery Method: Select the method of payment recovery whether to deduct from per month’s salary or by cash.
- Payment Installment Amount: Select the installment method in which you want to deduct the loan from the employee’s salary whether Fixed Amount Percentage of Basic Salary.
- Add Loan Taken Date & Payment Start Date.
- Enter the Loan Amount.
- Enter deduction value: If the deduction is in Percentage(%), enter the percentage value in the “Deduction Field” Alternatively, if you selected a fixed amount in the “Payment Installment Amount” section above, enter that amount.
Repayments of Loan Amount #
- You can manage all of the loans you’ve provided for your employees using the loan module in Paypeople, and you may take repayments out of their salaries each month.
Manual Repayments of Loan by Cash #
- If any employee pays a sum that exceeds the installment amount deducted from his or her salary, add that sum to the loan balance using Add Payment.
- Click on “Add Payment” in the top right corner.
- You can add a date and an amount of installment here.
Auto Repayments of Loan by Salary #
- If we have any loans, you can integrate them with payroll so that your ‘Emi’ is deducted immediately from your salary account.
- Apply in the same way as a loan, but this time chooses advance for an advance salary or payment.
- If we have any Advances, you can integrate them with payroll so that your Advance is deducted straight from your salary account.
Provident Fund #
The method is the same as when applying for a loan or advance. You have two alternatives here if you choose the provident fund.
If you have given any Temporary PF loan it can manage the loans that you have provided for your employee and you can deduct repayments from the employee’s salaries each month.
An employee who takes out a permanent PF loan does not pay it back in monthly installments.