Once the Loan Application is approved by the manager, a Loan record and repayment schedule can be created for the Applicant using the Loan.

1. Prerequisites

Before creating a Loan record, it is necessary that you create the following documents:

• Loan Type
• Loan Application
• Chart of Accounts

2. How to create a Loan record

To access Loan list, go to:

Loans > Loan

Note: Check "Repay from Salary" if the loan repayment will be deducted from the salary

You can alternatively create a Loan record directly from Loan Application

3. Features

3.1 Creation of Disbursement Entry

After submitting the Loan document, if the status is "Sanctioned", you can click on "Create Disbursement Entry" to create a Journal Entry of the Loan.

3.2 Loan repayment deduction from Salary

To auto deduct the Loan repayment from Salary, check "Repay from Salary" in Loan. It will appear as Loan Repayment in Salary Slip.

3.3 Extending the Loan

Loan amount is deducted from the salary. If the employee is on leave without pay for some period, the existing loan can be extended without the need for creating a new loan. This can be done be editing the Repayment Schedule table even after submitting the loan.