Introduction/Purpose:

The Process Loan module in HRMS (Human Resource Management System) is designed to streamline the loan management and disbursement process within an organisation. The purpose of the process loan module is to disburse the loan amount within the system.It also includes the pre-payment, loan waiver,  loan settlement, download receipt, change installment, pre-payment history and loan transfer.

Dependency:

• Approved Loan Request: Before moving to the loan disbursement, the loan request must be approved by the designated approval authorities. The approval process ensures that eligible individuals receive loans in accordance with the organization’s policies and guidelines. Only after all necessary approvals have been obtained can the loan disbursement process begin.  

• Mandatory Fields: The Repay Start Date, Disburse Amount, Disbursement Date, Payment Method, Reference No., and Remarks fields must be declared as necessary within the system for the processing of the loan and the disbursement of the amount.

Process Flow:

How To Navigate: 

The navigation to a Process loan in a HRMS typically involves the following steps:

• Click on the main navigation icon: The main navigation icon located in the top  right corner of the screen. Clicking on this icon will open the navigation menu, which typically includes links to various sections of the HRMS system.

• Click on the Loan & Advance section: The Process loan is located under the transaction section. By clicking on the process loan, it will display an employee code, name, request code, loan name, interest rate, request approval by, request approval date, total amount, outstanding amount, paid amount, approval status and action.

Listing: 

• Filter : User can filter the data based on the following categories:
  • Employee Name
  • Employee Code
  • Request Code
  • Disbursement Date
  • Loan Name
  • Is Disbursed
• Change View: By using this feature, users can change the layout of the data in a listing. It provides different options like table view, grid view and list view.

• Change Sorting:  By using this feature, users can arrange the entries in the ascending order based on selection of any respective fields in a listing. 

• Quick Search: By using this feature, users can quickly search for specific records within a listing.By using the filter search based on the respective column details.

• Export: By using this feature, the user can extract data from the system and save it in a compatible format like Excel, CSV, or PDF (only PDF supports landscape and portable formats). 

• Show all listing records: By using this feature, the user can refresh the listing records within the system.

• Advanced Search: By using this feature, the user can use the advanced filter option to find the listing records within the system.

• Pagination: By using this feature, the user can view the records of the various pages and also increase or decrease the listing rows in a page.

Recording & Update:

The process loan in HRMS typically include the following:

• Repay Start Date: This refers to the date on which the user is expected to start repaying the loan.

• Disburse amount: This indicates the total amount of money that will be disbursed.

• Disbursement Date: This is the specific date on which the loan amount will be provided to the user.

• Payment Method: This field refers to the chosen method through which the user will make loan repayments. 

• Reference No: The reference number serves as an identifier for the loan disbursement transaction. 

• Remarks: This field provides an optional space for any additional comments, or notes related to the loan disbursement.

The user can perform the following actions in this section:

• Disburse Loan: This option allows the user to disburse the loan to the respective loan request generated by the user in the system.

The user can also perform the following actions after the loan is disbursed:

1. Pre-Payment: Prepayment refers to the act of paying off a debt or an obligation before it is due, typically in part or in full. It involves making a payment before the scheduled payment date or before the entire amount becomes due. Prepayments are commonly made in various financial transactions, such as loans.
   • Pre-Payment – Recording & Update:
     • Payment Date: The date on which the pre-payment is made by the borrower.
     • Payment Method*: The chosen method or medium used to make the pre-payment, such as cash, check, bank transfer, or online payment.
     • Amount: The total amount of the pre-payment made by the borrower.
     • Reduce: Indicates the intention to reduce the outstanding loan balance with below pre-payment option
     • Installment: By selecting this option, the user can reduce the loan installment.
     • Installment Amount: By selecting this option, the user can reduce the loan installment amount.
     • Reference No: A reference number assigned to the pre-payment transaction for tracking and documentation purposes.
     • Remarks: Users can add additional comments, notes, or instructions related to the pre-payment.
     • The user can perform the following actions in this section:
       • Discard: This option allows the user to discard the changes before saving them.
       • Payment Received: This option allows the user to submit the pre-payment details in the system.

2. Loan Waiver: A loan waiver refers to a financial arrangement in which a lender or creditor forgives a borrower’s outstanding debt, typically in part or in full. Loan waivers can apply to various types of loans, including personal loans, agricultural loans, student loans, or other forms of financial assistance.

• Loan Waiver – Recording & Update:
  • Date: This field represents the date on which the loan waiver was processed or approved. It typically indicates the specific day, month, and year when the loan waiver transaction took place.
  • Amount: This field denotes the amount of the loan that is being waived or forgiven. 
  • Remarks: The remarks field allows for additional comments or information related to the loan waiver.
  • The user can perform the following actions in this section:
    • Discard: This option allows the user to discard the changes before saving them.
    • Payment Received: This option allows the user to submit the Loan Waiver details in the system.

3. Loan Settlement: Loan settlement refers to the process of fully repaying a loan, including any outstanding principal amount, accrued interest, and other applicable fees or charges. The loan settlement module helps the user change the loan amount or loan date.

• Recording & Update:
  • Installment Date: By using this the user can change the installment date of the loan.
    • Select Date Option*: This field offers different options for choosing the installment date. In this case, the available option is “Custom Date,” 
  • Installment Date: This field allows you to select or enter the desired date for the installment payment.
  • Custom Date: This field is specifically for entering a custom or specific date for the installment payment.
  • Current Installment Amount: This field displays the amount of the installment payment due for the selected or specified installment date. 
  • The user can perform the following actions in this section:
    • Discard: This option allows the user to discard the changes before saving them.
    • Submit: This option allows the user to save the Loan installment date details in the system.
  • Installment Amount:  By using this the user can change the installment amount of the loan.
  • Installment Date: This field represents the date on which each installment is due to be paid.
  • Installment Amount: This field indicates the total amount of each installment that needs to be paid. 
  • Current Installment Amount: This field displays the amount of the current installment that has been paid. 
  • Remaining Amount: This field represents the outstanding balance remaining on the loan. It is calculated by subtracting the sum of the current installment amounts from the total loan amount.
  • Installment Amount: This field indicates the modified installment amount after making changes to the loan. It could be increased or decreased based on the adjustments required.
  • Remaining Installment: This field represents the remaining number of installments that need to be paid to complete the loan repayment. It is calculated by dividing the remaining amount by the modified installment amount.
  • Divided Equally into Remaining Installments: This phrase suggests that the modified remaining amount will be divided equally among the remaining installments. This means each installment will have the same adjusted amount.
  • Shift to Last: This action implies that the modified remaining amount will be added to the last installment. Instead of dividing it equally, the entire modified remaining amount will be paid in the final installment.
  • The user can perform the following actions in this section:
    • Discard: This option allows the user to discard the changes before saving them.
    • Submit: This option allows the user to save the Loan installment amount details in the system.

4. Recover Payment: The user will enter the loan recovery payment details into the system.

• The user can perform the following actions in this section:
  • Discard: This option allows the user to discard the changes before saving them.

• Payment Received: This option allows the user to submit the Loan settlement details in the system.

5.Download Receipt: It is a function or action that allows users to obtain and save loan receipts in a digital format. It provides a convenient way to access and store copies of loan payment receipts electronically.

6.Change Installment: It is a feature that enables users to modify the installment amount associated with a loan repayment. This functionality allows users to make adjustments to their loan repayment corresponding installment amounts.

Recording & Update:

User can change installment amount by the followings ways:

• Installment Amount* : This field indicates the modified installment amount after making changes to the loan. It could be increased or decreased based on the adjustments required.
• The user can perform the following actions in this section:
  • Discard: This option allows the user to discard the changes before saving them.
  • Submit: This option allows the user to save the Loan installment amount details in the system.

6.Pre-Payment History: Pre-Payment History refers to a record or log that captures the details of any pre-payments made towards a loan or debt before the scheduled repayment date. The information provided in the above details pertains to the pre-payment history. 

7.Loan Transfer: Loan Transfer refers to the process of transferring the responsibility of repaying a loan from one borrower to another. It typically involves the involvement of a loan guarantor, who takes on the obligation of repayment if the original borrower defaults.

Recording & Update:

• Loan Guarantor: This field indicates the individual who acts as the guarantor for the loan. A loan guarantor is someone who agrees to take on the responsibility of loan repayment if the primary borrower fails to fulfil their obligations.

• Repay Start Date: This field requires entering the starting date for loan repayment after the transfer. It represents the date from which the new borrower or loan guarantor will commence repaying the loan. 
• Reference No: This field requires entering a reference number associated with the loan transfer. The reference number can be used to uniquely identify and track the specific loan transfer transaction. 

• Remarks: This field allows for adding any additional comments or notes related to the loan transfer. It provides space to include relevant information or instructions regarding the transfer process or any specific details related to the loan.

The user can perform the following actions in this section:

• Discard: This option allows the user to discard the changes before saving them.

• Submit: This option allows the user to save the Loan transfer details in the system.