Payroll FAQs

• Pending: Loan request created but awaiting approvals.
• Approved: All required approvals (manager/admin) are complete and the loan is ready for disbursement.
• Disbursed: The loan amount has been released to the employee, and EMI deductions will begin from the defined start month.

• Flat Interest: Charged on the total loan amount throughout the repayment period.
  Example: For a ₹12,00,000 loan at 3% interest, 3% is applied on ₹12,00,000 each period.
• Reducing Interest: Charged on the outstanding balance after each EMI repayment.
  Example: If ₹1,00,000 has been repaid, interest next period applies to ₹11,00,000.

When Flexible / Not Fixed is selected, the administrator defines a fixed EMI deduction amount instead of specifying the number of repayment months. The loan continues until the entire principal plus interest is recovered.

Once a loan entry is created, employees can view their loan details and repayment history under Main Panel → Payroll → Loan in the self-service portal. They can see the amount, interest, status, and EMI transactions updated after each payroll cycle.

Upload supporting documents such as the employee’s signed loan request, internal approval note, or scanned loan agreement. This helps maintain verifiable proof of the loan request and approval.

When all EMI transactions are recorded and the total repayment equals the loan principal plus interest, HRStop automatically updates the loan status to Repaid.

Yes. Once the loan is marked Disbursed and the EMI Start Month is set, EMI deductions automatically appear in the employee’s payroll from that month onward.

The remaining loan balance can be recovered in the employee’s final settlement. Administrators can also record manual transactions to close the loan before exit.

If the loan is in the Pending stage, all details can be edited by the administrator.
If the loan is in the Approved stage, only the EMI Start Month and Payment Details can be updated.
Once the loan is marked as Disbursed, only the EMI amount can be modified. You will also be able to now add EMI transactions. No other details can be changed.

No. Once the loan has been marked as Disbursed and the EMI Start Month has been defined, it cannot be changed any further.

No.
If the Allow Managers to Approve Loan Request setting is not enabled under Control Panel → Settings → Payroll, managers will not have the option to review or approve loan requests.
In such cases, all loan requests — whether created by employees or by administrators on their behalf — will directly route to the administrator or finance team for approval and disbursement.

Note: Administrators always have full approval access to the Loan module, regardless of whether manager approvals are enabled or not.

The administrator’s decision is final. Even if the manager rejects a loan, the administrator can override the decision and approve or disburse it.

Yes. Comments entered during the loan approval or rejection process are visible to all approvers in the workflow and to the employee in the loan details view. Internal Notes remain private to administrators.

No. Once a loan is marked as Disbursed the EMI Start Month cannot be changed. To correct an incorrect EMI Start Month, contact Payroll/Finance to either reverse the disbursement or apply an adjustment (for example, add manual transactions or process a corrective entry). Do not change the loan status directly in the UI.

The EMI deductions will still begin automatically from the selected EMI start month. Therefore, loans should only be marked Disbursed after confirming payment to the employee.

After a loan is marked as Disbursed, only the EMI Amount can be modified. All other loan configuration fields, including duration, loan amount, and interest settings, become locked and cannot be changed.

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.

Only administrators and authorized finance users can view the full approval and disbursement audit trail. Employees can see only the current loan status and summary information in their self-service view.

Yes. The Loan Transaction Details page displays all repayments — both automated EMIs deducted through payroll and manual repayments added by the administrator.

To make the Loan option visible to employees, follow these steps:

1. Go to Control Panel → Settings → Payroll.
2. Scroll down to the Allow Loan section.
3. Enable the checkbox Allow Loan.
4. (Optional) Enable Allow Managers to Approve Loan Request if manager approvals are required.
5. Click Update Details to save.

Once enabled, the Loan option will appear for employees under Main Panel → Compensation → Loans, allowing them to raise loan requests and view their transactions.

Note: The Loan module is always available to administrators by default. Enabling this setting only affects employee visibility.

This setting ensures that employees can apply for a loan only after completing a minimum period of service within the current organization.
Experience from previous employers is not counted.
For example, if the minimum tenure is set as 1 year and 6 months, an employee must complete that period in the company before becoming eligible.

Yes. Administrators can define the maximum loan amount an employee can apply for by configuring the setting Maximum Loan an Employee Can Apply For (Times of Monthly CTC) under Control Panel → Settings → Payroll → Configure Loan Settings.

The system calculates the loan limit by multiplying the employee’s Monthly CTC with the configured multiplier value.
For example, if the multiplier is set to 3 and the employee’s Monthly CTC is ₹60,000, the maximum loan amount will be ₹1,80,000.

If this field is left blank, employees will be able to apply for any loan amount, and no upper limit will be enforced.

That depends on how the administrator has configured the setting Employee Must Have No Outstanding Loan under Control Panel → Settings → Payroll → Configure Loan Settings.

If this option is enabled, employees who already have an active or unpaid loan will not be able to submit a new loan request until the existing one is fully repaid.
If it is disabled, employees can apply for a new loan even if a previous loan is still active.

This setting defines the mandatory waiting period between the repayment of one loan and the submission of another loan request.
For example, if this value is set to 6 months, employees can apply for a new loan only six months after repaying their previous one.

That depends on how the administrator has configured the setting Document Upload Required with Loan Application:

• Optional: Employees can apply without attaching any document.
• Mandatory: A document (e.g., signed application form or internal approval proof) must be uploaded before the system allows submission.

The Interest Rate per Annum by SBI is used to calculate the taxable interest benefit (Loan Perquisite).
If a company gives a loan at a lower interest rate than the State Bank of India’s standard rate, the difference is treated as a taxable benefit under income tax computation.

Any updates saved in Configure Loan Settings are applied immediately.
All future loan requests and payroll cycles will follow the updated configuration.