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Loan requests

How to request a loan or salary advance in Factura HRMS, read the repayment schedule, follow approval and see how deductions reach payroll.

For Employee, Manager or approver, HR admin · Last reviewed

Overview

The Loan Request module in Factura HRMS allows employees to request loans (salary advances, staff loans, welfare loans, etc.) and have them routed through a structured approval workflow. The system calculates repayment schedules, tracks disbursement status, and integrates loan deductions into payroll.

This guide covers:

Section What You'll Learn
1. Loan Types (Admin Setup) How administrators configure loan categories and their rules
2. Creating a Loan Request Full process from form entry to draft
3. Loan Payment Schedule How to preview the repayment plan before submitting
4. Submitting to Workflow How to send the request for approval
5. Initiator's View (After Submission) What the employee sees while the request is in progress
6. Approver's View How approvers review, approve, or reject loan requests
7. Approved Loans & Disbursement What happens after final approval
8. Quick Reference Status definitions, field reference, troubleshooting

Note: Loan requests use the same workflow approval system as Expense and Leave requests. For detailed information on configuring approvers, multi-level approval flow, and notification settings, see the Workflow Approval System Guide.

Articles in this guide

  1. How do I set up loan types?Before employees can request loans, an administrator must configure the Loan Types available in the system.
  2. How do I create a loan request?Click Transactions in the left sidebar.
  3. How is the loan repayment schedule built?Before submitting, you can preview the repayment schedule to understand exactly how much will be deducted…
  4. How do I submit a loan request for approval?After saving, open the draft from the 1.
  5. How do I follow my loan request after I submit it?Once you submit a loan request to workflow, you can track its progress.
  6. How do I approve or reject a loan request?When you are assigned as an approver, pending loan requests appear on your dashboard and in the loan request…
  7. What happens after a loan is approved?Loans: After all approval levels are completed, the request is marked as Approved .

Quick Reference

Loan Request Status Lifecycle

Status Meaning Tab
Draft Request created but not yet submitted for approval 1. Draft
Submitted for Approval Request is in the approval chain, awaiting an approver's action 2. In Progress
Approved All approval levels completed successfully 3. Approved
Rejected An approver rejected the request 4. Rejected
Cancelled The requestor withdrew the request while it was in progress 4. Rejected

Field Reference

Field Description
Employee The employee requesting the loan
Loan Type The category of loan (configured under Settings > Loan Type)
Principal Amount The total loan amount requested
No. of Installments Number of monthly repayment installments
Req. Disbursement Date Requested date for receiving the loan funds
Repayment Start Date Date the first repayment deduction begins
Remarks Additional notes or justification for the loan
Is Disbursed Whether the loan funds have been released to the employee

Loan Payment Schedule Columns

Column Description
S. No. Installment number
Repayment Date Monthly due date for the installment
Principal Amount Portion of payment applied to loan principal
Interest Amount Interest portion (0 for interest-free loans)
Installment Amount Total monthly deduction (Principal + Interest)

Roles Summary

Role Key Actions
Administrator Configure Loan Types in Settings, set up workflow approvers, mark loans as disbursed
Employee (Initiator) Create loan request, review payment schedule, submit to workflow, cancel if needed
Approver Review pending loan requests, check payment schedule, approve or reject with remarks
Finance / Final Notifier Receives notification when a loan is fully approved, processes disbursement

Troubleshooting

Issue Solution
Loan Type dropdown is empty No loan types have been configured. An administrator must add them under Settings > Loan Type.
Amount exceeds maximum The principal amount exceeds the maximum allowed for the selected loan type. Check the Loan Type settings for limits.
Installments exceed maximum The number of installments exceeds the maximum allowed. Check the loan type's Maximum Installments setting.
"Submit to Workflow" button not visible Ensure workflow is enabled for Loan Requests under Settings > Workflow Approvals.
Payment schedule shows 0 interest The loan type's interest rate is set to 0 (interest-free). This is correct for salary advances.
Loan not being deducted from salary Verify the loan type has a Deduction Component configured and the loan is marked as Disbursed.
Request stuck at a level The approver at that level has not yet taken action. Contact them directly or ask an administrator to check.
Not receiving notifications Check My Preferences > Workflow Notifications. See the Workflow Approval System Guide.
Cannot edit a submitted request Submitted requests are read-only. Cancel the current request and create a new one with updated details.

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