Employee Loan data
Employee Loan data is the loan. It carries the amount, the interest, the repayment schedule installment by installment, and the proof documents held on file. An approved loan request creates one of these by itself, and you can also create one directly.
What it is for
Employee Loan Request is the application. This is the loan. When a request is approved it creates this record and builds the schedule on it, so for a client running the full request process you will mostly open this screen to look, not to type.
You create one directly when there is no request to approve: a loan granted before the system went live, a loan the management agreed outside the policy, an advance paid in cash that now has to be recovered through pay. The same eligibility rules are checked when you do, with one exception. The loan type's request window - the days of the month applications are allowed in - applies to the request screen only. It is not checked here.
The schedule is the part that matters. Each line is one installment with its date, its amount, its share of the interest and its total. Employee Payroll Loan reads those lines once a period and turns the ones that have fallen due into deductions, and marks a line cleared when it has been fully recovered.
One thing to know before a client asks. The Balance field at the top is not maintained by the system and stays at zero. What a man still owes is the total of his installments that are not yet cleared, which is what the loan limit check reads and what Final Settlement recovers. Read the schedule, not the Balance field.
Every field, in plain words
Basic Data
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Transaction | The loan number | PYLE-000118 | Required. It numbers itself |
| Employee | Who has the loan | Tariq Javed | Required. Pick him from the list |
| Name | The employee in words | Tariq Javed | Fills itself. Leave it |
| Loan Type | Which loan this is | ADVANCE | Required. Pick it from the Loan Type list. It carries the rules checked against this loan and the wage type the deduction is made on |
| Notes | Anything the next person needs to know | Approved by management, house repair | Optional and worth filling, especially on a loan entered directly |
Loan Details
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Loan Amount | The principal | 150,000.00 | |
| Settled Amount | What has been settled against the loan | 0.00 | |
| Balance | The outstanding amount | Leave it | Not maintained by the system. It stays at zero. The real outstanding figure is the total of the uncleared installments on the schedule |
| Total | Principal plus interest, which the schedule has to add up to | 150,000.00 | The Installment Amount cannot be greater than this |
| Adjustment Amount | A correction applied to the loan | 0.00 | |
| Cleared Balance | What has been recovered so far | 37,500.00 | |
| Remaining Balance | What is left to recover | 112,500.00 |
Repayment
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Payment Start Date | The month the first installment falls due | 01 Mar 2026 | Required. A schedule built from a request runs monthly from this date |
| Installment Amount | How much comes off his pay each month | 12,500.00 | Required. It cannot be greater than the Total |
| No. of Installments | How many months to repay over | 12 | Required. An installment-based loan type caps this. A loan type that is not installment-based needs the whole amount in a single payment |
Interest
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Interest Type | Which kind of interest calculation | Leave it empty on an interest free loan | The list offers Fixed Rate and Reduced Rate, but both are stored under the same code, so the system cannot tell them apart. Treat the choice as a note for the reader and raise the duplicate with whoever maintains the list |
| Interest Rate | The rate | 0.00 | |
| Interest % | The rate as a percentage | 0.00 | Most staff loans at a Pakistani manufacturing client are interest free. Leave these at zero if so |
| Interest Amount | The interest in rupees | 0.00 | A schedule built from a request spreads this across the installments in proportion, with the last installment absorbing the rounding |
Internal Reference
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Reference no | The reference the client's own paperwork uses | HR/LOAN/2026/118 | Optional |
| Internal Reference | Any further internal reference | Board minute 14 Jan 2026 | Optional |
Approval
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Approved By | Who approved the loan | Head of HR | Pick from the list of responsible people |
| Approved Date | When it was approved | 10 Jan 2026 |
Schedule Loan
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Line # | The line number | Fills itself | Leave it |
| Installment No | Which installment this is | 1 | Required |
| Installment Date | The date it falls due | 05 Mar 2026 | This date is what decides which period collects it. An installment is collected by any period whose end date is on or after it |
| Installment Amount | The principal part of the installment | 12,500.00 | |
| Interest Amount | The interest part of the installment | 0.00 | |
| Total | The whole installment | 12,500.00 | This is the figure Employee Payroll Loan recovers |
| Cleared | Whether this installment has been fully recovered | Leave it | Ticked for you when its balance reaches zero. A cleared installment stops appearing on Employee Payroll Loan |
| Line Text | A note for this installment | Deferred by one month, agreed with HR | Optional |
Proof
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Line # | The line number | Fills itself | Leave it |
| Loan Proof | Which supporting document this line is about | MEDICAL | Required. Pick it from the Loan Proof list |
| Required proof | Whether this proof is required for this loan | Ticked | Required |
How to configure it
- For a loan that came through the request process, do nothing. Approving the Employee Loan Request creates this record and its schedule. Open it and check the schedule dates, then stop.
- For a loan entered directly, open the screen and pick the employee and the loan type. The eligibility rules on the loan type are still checked, except the request window.
- Type the Loan Amount and the Total. On an interest free loan they are the same figure.
- Set the Payment Start Date, the Installment Amount and the number of installments so that the installments come to the Total.
- Fill the interest fields only if the loan actually carries interest.
- Go to Schedule Loan and enter one line per installment, numbered from one, each with its due date and its total. Check that the line totals add up to the Total at the top - nothing recovers what is not on a schedule line.
- Add the proof lines.
- Fill the approval and reference fields so that the loan can be explained a year later.
- Save.
Scenarios
A loan that predates the system has to be brought in
Create the record directly with the original loan amount, and put only the installments still to be collected on the schedule. Do not enter installments that were already paid outside the system, or Employee Payroll Loan will collect them again. Put what was already recovered in Cleared Balance and say so in Notes.
A loan installment should skip one month
There are two ways and they are not the same. To skip a single month and catch up the next, leave the schedule alone and set that line's Clearing to zero on Employee Payroll Loan. To genuinely push the loan out by a month, come here and move the installment dates. Use the first for a one-off, the second when the man's repayment has actually been rescheduled.
We lent a man more than the policy allows
The same cap is checked here as on the request screen, so the screen will refuse it. Either change the cap on the loan type, or use a separate loan type for exceptions with its own cap. Do not try to split one loan into two records to get under the cap - the cap counts his existing loans of that type, so the second record will be refused too.
A man is leaving with a loan outstanding
Leave the record alone. Final Settlement finds every loan of his with uncleared installments and puts one recovery line on the settlement per loan, at the total of the installments still open. The reference on that line is this loan's number, so the recovery traces back here.
What it is connected to
- Needs Loan Type, Loan Proof, the employee confirmed, and his Recurring Payments and Deductions record for the percentage cap.
- Created by an approved Employee Loan Request, which also builds the schedule.
- Employee Payroll Loan reads the schedule and recovers the installments through pay.
- Final Settlement recovers whatever installments are still open when the man leaves.
- A loan cannot be deleted once Employee Payroll Loan has collected against it.
If something looks wrong
- "The Balance field says zero and he clearly owes money" - that field is not maintained. Add up the installments on the schedule that are not cleared.
- "It says the installment is more than the total" - the installment amount must be a part of the total, not the whole of it.
- "Employee Payroll Loan is not picking the loan up" - either there are no schedule lines, or no line has a date on or before the end of the period, or every line is already marked cleared.
- "It will not let me delete the loan" - Employee Payroll Loan has already collected against it. Adjust the schedule instead.
- "The interest type list shows two entries that look the same" - they are stored under one code, so the system cannot tell Fixed Rate from Reduced Rate. The choice is a note only.