How do I update the information on Loans taken by an employee?#
Loan components are generally created under the Total Deductions component.
To Edit or update information on a new loan, click on the Edit icon of the Loan component (see box 1) or right click on the Loan and click on the Edit menu option (see box 2).
The Loan screen will open up.
Create a new Loan by clicking on "Create New" button. (see box 1)
Update the details like Date of Loan, Deduct From, Amount, Interest Rate and Number of Installments.
Loan Type (see box 2), refers to the way Interest is calculated. You have various ways in which interest can be calculated.
In case you do not want an interest to be charged, then leave the Loan Type as "Flat Interest" and update the Interest Rate to 0. (see box 2 and box 3)
The Installments Details like Monthly Installment, Principal Balance and Interest Balance are computed automatically.
Loan Perquisites are automatically calculated based on the Interest Rate charged to the employee and a Statutory Interest Rate. You can specify the Statutory Interest rate in the Perquisite Rate field (see box 1).
Click on the Save button once all updates are complete.
The loan deduction will happen automatically and update in the payroll once the Payroll is processed. You do not need to perform any other activity.
Once the loan is completely recovered, the deductions will automatically stop.
If you wish to see all the deductions done till date, you can click on the Loan Details tab.
Please note that you can have only one current loan under an item at any point of time. You can close an existing loan and then start-off a fresh one.
If you need to have two simultaneous loans, then you would need to create two separate Loan components. For e.g. Personal Loan 1 and Personal Loan 2.