Loan Master
Why should I use this form?
Use this form to create/maintain various loan types. Loan type could be Housing Loan, Personal Loan, Salary Loan etc., while defining a loan type, attributes such as Interest type, Default Interest Rate, Maximum number of Installments in which the loan to be recovered from employee, Ceiling Amount of disbursement in the loan type, and Deduction Frequency are specified.
This form facilitates creating/maintaining various scheduler types for Loans, Advances or any other scheduled deductions.
What are the Pre-requisites?
N/A
Who can access this form?
This form shall be visible to all employees to whom the visibility is given in Product Setup ® Module Role Mapping/Module Administration.
How to navigate to this form?
Point to Payroll menu, select Loan Master under Loan.
Figure 2‑18 Loan Master
The grid in this form shows the list of existing Loan Masters. Use the filter section to filter records in the grid based on a condition.
Click the [+] icon on the left top of the grid to show/hide the grid.
The field guidelines are as follows;
Field Name |
Description |
Short Name |
Enter the short name of the Component. This accepts only alphabets and numbers. The Short name can start with alphabets only. |
Description |
Enter description, details regarding the loan |
Interest Type |
Select the Interest Type. Flat – This type of Interest will be calculated on the disbursed amount till the completion of loan. Diminishing - This type of Interest will be calculating interest on the principal outstanding of each month after deduction of previous month’s deduction towards principal is done. EMI - The EMI will be calculated basis total of amount disbursed to employee and the interest calculated on a diminishing balance method. This will be divided by the total number of installment to arrive at a constant deduction till completion of the loan. None – This means that there is no Interest for that particular loan type. |
Interest Rate |
Enter the default Interest rate for that loan type. The interest rate can be modified at the time of loan scheduler (disbursement) entry. |
No of Installments |
Enter the maximum number of installments in which the recovery to be completed for the loan. |
Perquisite Rate |
Enter the Perquisite Rate for income-tax calculation as per the banking norm. |
Ceiling Amount |
This will be the maximum amount that can be availed as loan. Ceiling can be set for number of months as well as for loan amount. Loan scheduler will restrict to this ceiling value entered while creating a loan scheduler entry. |
Deduc Frequency |
The period in which the deductions have to be made. Currently the application supports only monthly deduction frequency option. |
Click [Submit] to save the details.
Click [Reset] to refresh the form.
To modify any Loan Type, select the record from the grid. Selected Loan Type will be populated in the form. Make necessary changes and click [Submit] to save the changes.
To delete any record from the grid, select the record by clicking on the grid. Selected record will be populated in the form. Click [Delete] to delete the record.
Post Activity
Once the loan master form is submitted, the details from this form reflect in Loan Scheduler.