Companies usually pay loans to employees with a little or no interest. AttendHRM makes the process easy by automating the loan recovery. This help document describes how you can issue and recover loans with AttendHRM.

I’m going to issue a loan to one of our employees. I’ll input the loan details and recovery plan in to AttendHRM and then the whole process of recovery is automated. The loan is to be repaid from employee salary in installments.

Step 1: Input Loan Details

Salary Loan
Add loan

Specify the type of the loan, date of disbursement, and the principal amount.

Loan type

Step 2: Calculate Interest

Our company is giving out an interest free loan, so, the interest is zero.

Loan interest

Step 3: Recovery Mode

The recovery can be made in lumpsum or in installments. My employee will repay in 10 installments.

Recovery mode

Step 4: Recovery Plan

Specify the recovery cycle, date from which recovery starts and also mention if the recovery is to be made from employee salary.

Recovery cycle
Save loan

If you choose to recover from salary, the system will automatically deduct loan installments from employee salary.

loan installments

Remember to include Salary Head ‘Loan Repayment’ in Employee’s Salary Group.

Salary group
Choose salary group
Add salary head
Save salary head
Salary structure

Step 5: Manual Loan Recovery

If you make a loan recovery out of salary, you have to update the system with the details.

Add recovery

My employee made a cash payment of 1000. Let me show you how to update this in the system.

Cash payment
Modified installments

Step 6: Altering Installment Amount

If you want to modify the installment amount for a month, the system can insert a new installment or adjust the amount in future installments.

My employee has requested to deduct only 500 instead of 1000 for this month, and he wants to extend the loan with another installment, let me show you how to do that.

Select installment
Modify installment
Extra installment

Alternatively, the system can adjust the amounts in the future installments instead of adding another installment. Let me show you how.

Installment amount
Loan Installment

Step 7: Loan repayment and balance

The loan repayment and balance amounts can show up in payslips.


Once you input the loan details, the system will automatically recover the loan repayments from employee salary until the loan is fully repaid.