An employee loan is a type of loan provided by an employer to an employee. It is typically an interest-free or low-interest loan that is given to the employee to help them in times of financial need. Employee loans may be used to pay for various expenses such as medical bills, home repairs, or personal debts.
Employee loans are usually structured as a payroll deduction, meaning that the loan payments are automatically deducted from the employee's paycheck each pay period until the loan is fully paid back. The repayment terms, interest rates, and loan amount will depend on the specific policies and procedures of the employer.
DizLog Employee Loan feature allows Employer to submit and process loan of their Employee which means only Employer is allowed to process a loan for their Employee depending on their verbal or written agreement.
To know how you may process loan, choose which feature you are using:
Using Merchant /Owner account
Click "Settings" dropdown list and select "Employees"
Navigate up to "Pay Item" and click on "Manage Loans"
Click on "+ Add Loan"
Select "Employee name" by clicking on dropdown list icon
Enter the agreed "Loan Amount"
Choose Deduction frequency from "Month" or "Year" : this refers to how often payments will be deducted from Employee Account
Note:Loan payment is default as "Auto Deduction from Employee Payslip" and will be deducted automatically as how deduction frequency has setEnter "Loan Term": refers to the specific period of time during which you Employee is obligated to repay a loan to the owner/lender. Example: 1 month, 6 months, 12 months or more
Loan Description: Sample will be Salary Loan, Calamity Loan or others
Note:Once Loan Term is selected the system will automatically calculate the monthly repayment depending on the number of months entered into loan term
Review all information and click on "Add Loan"
💡 As of now, Processing a loan for Employee only reflects on Merchant/Owner account, thus"Verbal and Written agreement" only so there's no way for Employee to track loan info from their account.
Using Merchant /Owner account
From the Homepage of the app, tap "HRMS" and tap "More"
Tap "Loans" and to create a loan tap "+Add Loan"
Select "Employee name" by tapping in dropdown list icon
Enter the agreed "Loan Amount"
The outstanding amount will be leave as blank
Choose Deduction frequency from "Month" or "Year" : this refers to how often payments will be deducted from Employee Account
Note:Loan payment is default as "Auto Deduction from Employee Payslip" and will be deducted automatically as how deduction frequency has setEnter "Loan Term": refers to the specific period of time during which you Employee is obligated to repay a loan to the owner/lender. Example: 1 month, 6 months, 12 months or more
Loan Description: Sample will be Salary Loan, Calamity Loan or others
Note:Once Loan Term is selected the system will automatically calculate the monthly repayment depending on the number of months entered into loan term
Review all information and click on "Add Loan"
💡 As of now, Processing a loan for Employee only reflects on Merchant/Owner account, thus"Verbal and Written agreement" only so there's no way for Employee to track loan info from their account.