Repayment & Payroll

Once a loan is approved, repayment happens automatically through payroll — you don't need to record deductions by hand.

How deductions work

When you generate payroll for a month, the system:

1. finds each employee's approved loans with an installment due that month;
2. adds the installment to the payslip as a deduction labelled "Loan Repayment – {loan type}";
3. reduces the payslip's net salary and increases total deductions accordingly;
4. decreases the loan's outstanding balance and marks that installment as deducted.

The deduction therefore appears in the deductions section of the employee's payslip, alongside any other deductions.

The amount deducted depends on the deduction method chosen at approval: equal installments, a fixed monthly amount, or a percentage of salary. Each month's deduction is capped at the remaining outstanding balance, so the final installment is never overcharged.

When a loan is fully repaid

When the outstanding balance reaches zero, the loan status becomes Completed and no further deductions are taken.

Prepayment (paying early)

An approver/HR can record an early payment on an active loan:

1. Open the loan's detail page.
2. In Record Prepayment, enter the amount and submit.

The outstanding balance drops immediately, and if it reaches zero the loan is marked Completed.

Regenerating or deleting a payslip

If a payslip that included a loan deduction is regenerated or deleted, the system automatically reverses that deduction — the installment is returned to scheduled and the outstanding balance is restored — so balances always stay correct.

Where to see balances

• Loan detail page — approved amount, monthly installment, total payable, outstanding balance, and the full repayment schedule with each installment's status.
• Employee profile → Loans tab — a summary of the employee's loans and outstanding amounts.