Recording Loan Repayments (EMI Transactions)

Oct 28, 2025

Purpose

This article explains how Administrators can record or track EMI transactions for employee loans in HRStop.
Loan repayments can either occur automatically through payroll processing or be entered manually by the administrator. Recording repayments ensures that loan balances and repayment status remain accurate across the system.


When You May Need This

Use this feature when you need to:

  • Track monthly EMI deductions processed through payroll.
  • Manually record loan repayments that were made outside payroll (such as direct transfers or adjustments).
  • Enter missed or historical EMI records for migrated loan data.

Types of EMI Transactions

1. Automated EMI Deductions (System-Generated)

  • Once a loan is created, approved, and marked as Disbursed, the system automatically starts deducting EMIs from the employee’s monthly salary after the defined EMI Start Month.
  • These deductions continue every payroll cycle until the entire loan amount, including interest, is recovered.
  • The EMI transactions are created automatically in the background during payroll processing, and employees can view them in their Self-Service Portal → Payroll → Loan section.

2. Manual EMI Entries (Administrator-Added)

If repayments occur outside payroll (for example, via direct bank transfer or a one-time adjustment), administrators can record them manually.

Steps:

  1. Log in as an Administrator with access to the Payroll module.
  2. Navigate to Control Panel → Payroll → Loan → All Loans.
  3. Locate the loan for which the repayment needs to be added.
  4. Click Add Transactions under the Action column.
  5. Enter the Transaction DateRepayment Amount, and Payment Reference (e.g., cheque or transfer ID).
  6. Click Save to record the EMI.
  7. Repeat for any additional or backdated repayments.

Where It Reflects

  • All automated and manual repayment records appear under View Loan Transaction Details.
  • The outstanding balance and total repayment progress update automatically.
  • Once the total repayment equals the loan principal plus interest, HRStop marks the loan as Repaid.
  • Employees can view updated repayment progress in their Self-Service Portal → Payroll → Loan section.

Pro Tips

  • Automated EMI deductions require the loan to be marked as Disbursed with an active EMI Start Month.
  • Use manual transactions only for repayments made outside payroll or before system migration.
  • For migrated loans, enter previous EMI transactions first to maintain correct interest and balance calculations.
  • Always cross-check transaction entries before processing payroll to avoid duplicate repayments.

Related Articles

FAQ

Automated loan EMIs are generated automatically by the system during payroll processing after the EMI Start Month is reached.

Manual loan EMI entries are added by the administrator for repayments that occurred outside payroll, such as direct bank transfers or historical loan repayments.

No. Manual loan repayments/ EMI Transacttions only update the loan balance and repayment record in the system. They do not impact payroll calculations.

Yes. Administrators can delete manually added loan repayments/ EMI transaction if needed and re-enter them with corrected details. However, loan EMIs generated automatically through payroll cannot be deleted directly; they are tied to payroll processing.