To start with Loan Management, user has to first create a Loan type from Pre-process Menu – Loans Type option. 

On next screen click on "Add New" to create a new loan type and fill-up required details:

  • Loan Name: Provide the name of the loan (e.g., Home Loan, Education Loan).
  • Loan Code: Assign a unique code for the loan type.
  • Interest Rate: The applicable interest rate will be configured based on the loan type selected. Enter the desired interest rate (Ex: 5%, 7%). At last, Save the Loan Type.



Saved Loan Types will be shown on the list. User can view, edit and delete loan types as per the requirements here.



After completing the setup, the loan types, Payroll user can use them to allot a Loan to employee from Payroll module. Employees can also apply for a loan request through their ESS portal or Mobile App. Let us see both options below:


How to Assign a Loan to an Employee in the Payroll Module:


Step 1: Login into Payroll, navigate to the Pre-Process Menu - > Loan (EMI Based) option.

Step 2: On next page, click on the Add New button to initiate the process of assigning a loan.


Step 3: Enter Loan Details as:

  • Loan Type: Choose the loan type from the available options.
  • Interest Rate (%): The interest rate will be automatically updated based on the selected loan type.
  • Loan Date: Specify the date when the loan was taken.
  • Recover Mode: Select the mode of recovery.
  • Interest Applicable: Choose the interest applicability mode.
  • Loan Reason: Select the reason for the loan from the dropdown menu.
  • Loan Amount: Enter the amount of the loan requested by the employee.
  • Recover From: Select the month from which the loan recovery will begin.
  • EMI Amount/EMI No: Adjust based on the selected recovery mode.
  • Total Interest: This will be calculated based on the loan amount.
  • Remarks: Add any additional remarks or updates as needed.



Step 4 : Click on Save to finalize the loan assignment.

This process ensures that the loan is properly set up and assigned to the employee, and all necessary details are recorded in the payroll system.


How to Assign a Loan in bulk using the Payroll Module:


Step 1: At ‘Loans (EMI Based)’ page click on the Export Excel option to download the LoanList Excel. The file will be downloaded to your default download location.


Step 2: Open the downloaded Excel file. Fill in the required details for each loan in the provided fields.


Step 3 : Import the Updated File:

  • Go back to the Loans (EMI Based) section.
  • Click on the Bulk Import option.
  • Choose the updated LoanList Excel file.
  • Click on Read Selected File and Then Save to complete the bulk update process.

This process allows you to allot loans to multiple employees at once.



Additional Options for Managing Loan Details in Timelabs Payroll:


View Loan Details:

  1. To review all loan-related information for a specific loan, click on the View option under the Action menu on ‘Loan (EMI Based)’ page.
  2. This will display comprehensive details about the loan taken by the employee, including amounts, EMI schedules, and status.



Manage Loans:

  1. To edit, update, or delete loan records, click on the Manage option under the Action menu on the ‘Loan (EMI Based)’ page which will take you to the ‘Manage Loan’ section.


‘Manage Loan’ section allows you to make necessary changes to existing loan records, such as adjusting EMI amounts, Pre-payment of Loan EMI, skipping loan EMI etc.



EMI Recoverable (By Salary): EMI adjusted with Monthly Salary payment will be received automatically and shown here. 


Receipt Recovered: This refers to the total amount submitted in cash by the employee for loan repayment, for which the employee receives a receipt as proof of payment. This section tracks any payments made outside the regular EMI deductions from salary, such as advance or additional payments made towards the loan in form of Cash.