Introduction
Welcome to this user-friendly guide about the Loan Management Feature in Empress. This feature is a powerful tool that allows businesses to manage and track employee loans, making the process seamless and efficient.
Understanding the Loan Management Feature
Empress’s Loan Management feature is designed to streamline the entire loan process, from application to approval and repayment. This feature ensures transparency and efficiency in managing employee loans, offering a user-friendly interface without the need for technical jargon.
Creating a Loan Type
To start, you need to define the type of loans your company offers. Here’s how:
- Navigate to the Loan Type creation page.
- Fill in the necessary fields:
- Loan Name: The title of the loan type.
- Rate of Interest (% Yearly): The annual interest rate for this loan type.
- Maximum Loan Amount: The highest loan amount for this loan type.
- Description: A brief description of the loan type.
Applying for a Loan
After setting up the loan type, your employees can apply for a loan. They will need to fill out the following:
- Applicant Type: This should be ‘Employee’.
- Applicant: The name of the employee applying for the loan.
- Loan Type: The type of loan the employee is applying for.
- Loan Amount: The amount the employee is requesting.
- Repayment Method: The method through which the loan will be repaid.
Approving a Loan
Once an employee applies for a loan, a Loan Approver will create a Loan document. The approver should fill in the following details:
- Repayment Start Date: The date when the employee will start repaying the loan.
- Mode of Payment: The method through which the loan will be repaid.
- Payment Account: The account where loan repayments will be deposited.
- Loan Account: The account from which the loan will be disbursed.
- Interest Income Account: The account where interest payments will be recorded.
Note: The initial status of the loan is ‘Sanctioned’. Loan Approvers also have an option to check ‘Repay from Salary’, allowing the employee to repay the loan amount from their salary.
Creating the Disbursement Entry
The final step is to create a Disbursement Entry. This can be done by clicking ‘Create Disbursement Entry’ at the top right corner of the Loan Document.
Conclusion
Empress’s Loan Management feature simplifies the process of managing employee loans, providing a smooth and efficient experience for both the employer and the employee. With its user-friendly interface and comprehensive functionality, it’s an invaluable tool for businesses.
For more information and support, please visit our Empress support page or contact our customer service team.