How to Set Up Employee Loans In My Payroll Master

In this video, let's discuss how to give loan to an employee. Employee loans can be defined as the money which is paid in advance by an organization to this employee in the form of financial assistance. Means an employer is free to make loans to his employees for any purpose and no cost or interest free loans are commonly offered as an employee benefit. This video shows how the admin can enter, manage, and store data regarding employee loans.

First, go to Loans and Assets and click Employee Loans. In this we create individually or in bulk.

First we are discussing how to create employee loans individually.

►For this, click on New button. In the form, add Employee Name, Loan Amount, Tenure, Interest Rate, and Remark.

► When you enter Loan amount and tenure, EMI amount and EMI end month will appear automatically

►EMI start month will come automatically as the current month.

► You also have the option to change the month.

► Next is interest rate. If the company wants to give interest rate to the loan, give here.

► Next, give remarks. Once you are done, click Save button

To see the loan details of the employee, select an employee and click on View Details. Here you can see the loan details. The loan details can be downloaded as PDF and Excel file.

Employee's EMI amount will be deducted from salary. That means after approving the employee's payroll, the EMI amount will be automatically deducted from the salary. After approving payroll, you can see the changes. EMI deducted from monthly salary will appear automatically.

After deducting the loan amount, Opening Balance and Closing Balance will also change. You can also see loan completion status here.

Next Section is update loan.

►For this, select an employee and click Update Loan.

►Here, Additional Payment for this month option is available. If the employee wants to pay additional EMI, the amount can be entered in the tab. Enter Remarks.

►Then click on Additional payment for this month. You may see the changes in Loan Details of the employee.

►To close this loan, click update loan. Then click update loan as completed.

►When clicking on Update Loan as completed, loan will be closed

Next is how to transfer EMI

►Here, it's showing EMI Deduction month.

► EMI Deducted month won't show in EMI transfer month filter .Select the month in which EMI has to transfer

►When you select April, if you didn't pay EMIs for February and March that will show here to transfer EMI. The month taken to transfer EMI won't be shown in two months.You can change EMI to any month from start month to end month.

►EMI start month here was February. Tenure is 10. So EMI completion month is November.

► If you are transferring EMI month, the completion month will be extended to the next month of actual completion month.

► To see the changes, click the view details. Red colour indication is showing close your completed loan entry.

Next we are discussing how to upload employee loan in bulk.

► For this, select the branch.

► Then click download.Enter the data in the downloaded Excel file. Here, Employee ID, Company Employee ID and Employee name will appear automatically.

►Then enter loan amount .If the company wants to give interest rate, option is here enter that.

► Tenure. Next, EMI start month. Follow the same format.From current month also,you can give EMI start month.

► If you give the month before the current month, Excel file won't get uploaded

► Next, Remarks. Once you are done, save the file. To upload file,Click Upload. Now you can see the added data here.

► You are having filter option to view month wise and employee wise.

Like this you can create loan entries for the employees.