Loans & Advances Setup – An Overview

This component enables you to setup and maintain loans & advances. Each loan or an advance is setup for a specific purpose for which it is granted to the employees.  A loan is repaid with a fixed rate of interest while employees do not pay any interest on an advance.

This component forms the basis for the other components in the Loans BPC.

Record Loans & Advances Setup: In this activity, you can introduce loans & advances.  You can define the various attributes of a loan/advance including the number of installments in which the principal and interest must be paid. You must also specify the eligible employees who can avail a loan/advance. The other details that are recorded in this activity include the financial book and account to which the loan & advance is posted, the documents that must be submitted to secure a loan/advance and the pay elements through which the loan/advance is recovered from the employee. You can change the attributes of existing loans/advances and delete the loan/advances that you no longer need.

Getting familiar with the activities inside