Frequently Asked Questions

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.

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.

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.

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.

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

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. 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.

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

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.

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.

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.

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.

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.

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

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.

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

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.

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.

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.

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