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Employee Loan Policies
Employee Loan Policies

Introduction and setting up employee loan policies

Manisha Chincholia avatar
Written by Manisha Chincholia
Updated over 2 years ago

We are excited to introduce our new feature which will help companies facilitate employee loan requests. This will help HR administrators to manage employee loan policies and loan requests easily.

It is also integrated with payroll, therefore provides automated loan amount disbursements and recurring deductions.

Set up Employee loan policies

Step 1: Create an Employee Loan policy

Go to Configuration > Payroll > Employee Loan policies > Create loan policy now

Step 2: Set up policy details

  • Clicking on 'Create New Loan Policy' will open up the loan policy wizard. Super Admins will be able to edit;

    • General

      • Specify a policy name in English

        • Mandatory in English if the language is set to English

      • Specify a policy name in Arabic

        • Mandatory in Arabic version if language is set to Arabic

      • Specify policy description in English

        • Optional

      • Specify policy description in Arabic

        • Optional

      • Currency

        • Mandatory

        • Select from the drop-down currency list

  • Loan amounts

    • Define loan limits by (two button options, only one will be active)

      • Fixed amount

        • Having this selected will allow companies to specify a minimum and maximum loan flat amount.

        • It is mandatory information to set up the policy, the minimum loan amount should be >0 and there is no maximum limit.

      • Percentage of an employee's salary

        • It is a mandatory information

        • Having this selected will allow companies to specify a % amount. There’s no max % amount.

  • Repayments

    • Repayment installments are (two button options, only one will be active. The fields will be visible based on the selection)

      • Static

        • If selected allows Super admins to specify minimum and maximum payment period.

        • Mandatory field

      • Flexible

        • if selected allow Super admins to specify the maximum monthly deductible value from gross salary

        • Mandatory field

Step 3: Add employees to the loan policy

  • Super Admin will be able to manage the employees from the list that has to be excluded or included in the policy.

  • Enable or disable to restrict employees on probation to be excluded from the policy.

  • Upon clicking 'Next', it will lead HR to the final reviewing page to finalize and save the policy.

  • The toggle will be switched on by default as Active, the Super admins have an option to edit it to deactivate.

  • Clicking on Save will show a confirmation that the policy has been saved.


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