Payroll
A staff loan tracked beside payroll is a staff loan that will be wrong.
Two records, two people maintaining them, and a monthly reconciliation that works until somebody takes unpaid leave, prepays a chunk, or resigns. Then the outstanding balance is whatever the spreadsheet says, and the employee has a different number.
Where recovery happens
Inside the run, not alongside it.
A loan is requested, approved, and on disbursement it mints its own schedule. Recovery then happens as part of the payroll run that pays the salary.
That single decision is why the outstanding balance and the payslip cannot disagree — they are produced by the same act rather than reconciled afterwards by somebody with two screens open.
- Instalments 1–6recovered on the payslip
- Lump-sum prepaymentremoved by the prepayment
- Instalments 7–12removed by the prepayment
- Remaining termremoved by the prepayment
- The schedule ends at exactly zero —
The last instalment absorbs the rounding, so a twenty-four month loan does not finish with a stray rupee that somebody has to write off.
- Month ends behave —
An instalment dated the thirty-first lands on the twenty-eighth in February rather than failing or drifting a day later every year.
- Prepayment shortens the term, not the instalment —
A lump sum clears what it clears and the remaining schedule is rebuilt at the same instalment with fewer months — the treatment people expect, and the one that does not quietly extend their repayment.
- It follows them to the exit —
An outstanding balance appears as a line on the final settlement on its own — which is the moment this most commonly gets missed.
- A waived instalment does not shrink the debt —
Which is the correct hardship treatment: the month is forgiven, the balance is not, and future interest keeps computing on what is actually outstanding.
- Writing one off says why, in every row —
The reason is recorded once and propagated onto every remaining instalment it cancels, so the history explains itself.
- Employees can see their own —
In the portal, with the schedule — so "how much do I still owe" is not a question anybody has to ask HR.
Straight answers
Mostly about the awkward cases.
›What happens if somebody prepays part of it?
The remaining schedule adjusts to what is actually left. They do not keep paying instalments against a balance that has already been cleared.
›What if they leave with a balance outstanding?
It appears as a recovery line on their final settlement, which is why a settlement can legitimately come out negative.
›Is interest calculated?
Yes — reducing balance, the standard treatment, with the final instalment absorbing the rounding so the schedule ends at exactly zero. An interest-free advance is the same machinery at zero per cent.
›What kinds of loan can we run?
Salary advance, personal, education, equipment and housing — with the rate, the tenure and the amounts all bounded so a typo cannot create a two-hundred-year loan at sixty per cent.
›Does it chase a missed instalment?
No. Marking a loan defaulted is a deliberate act with a reason on the record; nothing detects a missed recovery or ages the balance for you.
›Who raises a loan request?
HR books it today; the employee sees it and its schedule once it exists. If employee-initiated requests matter to you, raise it — it is a known gap rather than a design position.
›Can a loan be approved but not disbursed?
Yes — the schedule is minted on disbursement, so an approved loan that never went out has no recovery attached to it.
›Who can see somebody's loan?
They can, in the portal. Beyond that it is a permission question, and staff loans are one of the places where getting that wrong is felt personally.
Book a demo
Disburse one and prepay it.
The third step is the one that decides whether the two numbers can ever disagree.
- Approve a loan without disbursing it
- Disburse and look at the schedule
- Run payroll and find the recovery on the payslip
- Prepay a lump sum and check what is left