Employee Loan Request
Employee Loan Request is the application. A man asks for a loan, the screen checks him against the rules on the loan type, and when the request is approved it creates the loan itself and works out the installment schedule.
What it is for
A client with five hundred men has a loan policy, and the policy is not a sentence. It is a set of rules: who may borrow, after how long, how much, over how many months, and with what proof attached. Enforced by hand, those rules last about four months before somebody's cousin gets an exception.
This screen enforces them. Every rule it checks comes off the Loan Type, so the policy is configured once and applied the same way to everybody. It refuses a request rather than quietly approving a wrong one, and it says which rule it refused on.
The rules it checks, all of them from the loan type:
- The man must be confirmed. An unconfirmed employee is refused outright.
- A man serving notice cannot borrow.
- The request has to fall inside the loan type's request window, which is a day from and a day to within the month. This window applies to this screen only, not to a loan entered directly on Employee Loan data.
- The loan type can require a number of months of service, counted from the confirmation date, not the joining date.
- The amount is capped, either as a percentage of the man's earning wages or as a flat maximum. Whichever it is, the cap is reduced by what he already has outstanding on that loan type and by any request of his still sitting in approval. Whether the existing loans count at their outstanding balance or at their original amount is itself a setting on the loan type.
- An installment-based loan type caps the number of installments. A loan type that is not installment-based has to be repaid in a single payment.
When the request is approved, the screen creates the Employee Loan data record and builds the installment schedule on it. The installments are monthly from the Payment Start Date, the interest is spread across them in proportion, and the last installment absorbs whatever the rounding left over so that the schedule adds up to the total exactly.
Every field, in plain words
Loan Details
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Transaction | The request number | PYLR-000231 | It numbers itself |
| Transaction Date | The date of the request | 08 Jan 2026 | Required. This is the date tested against the loan type's request window |
| Employee | Who is asking | Tariq Javed | Required. Pick him from the list |
| Name | The employee in words | Tariq Javed | Fills itself. Leave it |
| Loan Type | Which loan he is asking for | ADVANCE | Required. Pick it from the Loan Type list. Every rule the screen checks comes from here |
| Loan Amount | How much he is asking for | 150,000.00 | Required. This is what is checked against the cap |
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. The schedule runs monthly from here |
| Installment Amount | How much comes off his pay each month | 12,500.00 | It cannot be greater than the Total. The screen refuses that |
| No. of Installments | How many months to repay over | 12 | An installment-based loan type caps this. A loan type that is not installment-based needs a single payment |
| Total | Loan amount plus interest | 150,000.00 | The amount the schedule has to add up to |
Interest
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Interest % | The rate, if the loan carries interest | 0.00 | Most staff loans at a Pakistani manufacturing client are interest free. Leave it at zero if so |
| Interest Amount | The interest in rupees | 0.00 | Spread proportionally across the installments when the schedule is built |
Approval
| Field | What it means | What to put in it | Notes |
|---|---|---|---|
| Approved By | Who approved it | Head of HR | Pick from the list of responsible people |
| Approved Date | When it was approved | 10 Jan 2026 |
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 request | Ticked | Required |
How to configure it
- Make sure the Loan Type is set up with the request window, the service requirement, the cap and the installment limit. All the checking this screen does lives there.
- Make sure the proofs the client asks for exist on Loan Proof.
- Open the screen and set the Transaction Date to the real date of the application. Backdating it to get round a closed request window is exactly what the window exists to stop.
- Pick the employee and the loan type.
- Type the Loan Amount. If the screen refuses it, read the message - it names which rule it failed.
- Set the Payment Start Date to the first month you want the deduction to start. Give the man a month's grace if the client's practice is to pay the loan out at the end of one month and start recovering in the next.
- Set the number of installments and the installment amount so that they come to the Total.
- Fill the interest only if the loan actually carries interest.
- Add the proof lines.
- Save, then get it approved. On approval the loan record and the installment schedule are created for you.
Scenarios
A man asks for more than the policy allows
The screen refuses the amount and says so. The cap is worked out from the loan type - either a percentage of his earning wages or a flat maximum - and what he already owes on that loan type is taken off it, as is any earlier request of his still waiting for approval. So a man with a car loan half repaid can borrow less than a man with none, which is the point.
We want to lend him more than the policy allows anyway
Then it is a decision, not a request, and somebody has to own it. Enter it directly on Employee Loan data. The same eligibility rules are checked there, except the request window, which applies only to this screen. If the client wants a genuine exception route, change the cap on the loan type for the one loan type that exceptions go on.
He asked in the middle of the month and the screen will not take it
The loan type has a request window, a day from and a day to of the month, and today is outside it. That is deliberate: it is how a client keeps loan requests to the first week so payroll can process them together. Either wait, or ask the client whether the window is still what they want.
A man who joined six weeks ago wants an advance
If he is not confirmed, the screen refuses him. If he is confirmed, the loan type's service requirement is counted from his confirmation date, not his joining date, so a man confirmed last week has one week of qualifying service however long he has been on site.
He has a loan and is now resigning
He cannot raise a new request while he is serving notice. What he still owes is recovered on his Final Settlement, which reads the installments not yet cleared, one line per loan.
What it is connected to
- Needs Loan Type, Loan Proof, the employee confirmed, and his Recurring Payments and Deductions record for the percentage cap.
- Creates the Employee Loan data record and its installment schedule on approval.
- Employee Payroll Loan is what actually recovers the installments through pay.
- A request cannot be used twice. Once a loan record references it, it is finished.
If something looks wrong
- "It says the employee is not confirmed" - an unconfirmed employee cannot borrow. That is a rule on the loan type and it is checked here and on Employee Loan data.
- "It says he is in the notice period" - a man serving notice cannot raise a request. Recover what he owes on his final settlement instead.
- "It refuses the amount and we are sure he qualifies" - the cap has had his existing loans of that type and his pending requests taken off it. Check both.
- "It says the installment is more than the total" - the installment amount must be a part of the total, not the whole of it.
- "We approved it and no loan appeared" - check whether another loan record already references this request. A request is only good for one loan.