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Manage Employee Loans

Employee loans let you record a principal, schedule installments, and recover EMI automatically when payroll calculates — as long as the loan is active and marked to deduct from payroll.

Create a loan​

  1. Go to Payroll → Employee loans.
  2. Create loan — choose the employee, loan type (personal, advance, emergency, and similar), amount, installments, and repayment start date.
  3. Biznsbook calculates total repayable and monthly EMI (simple interest applies when a rate is greater than zero).
  4. Save, then send the loan for approval when ready.

Approve and disburse​

  1. Approve the loan — status becomes Active.
  2. Disbursement may post to Accounting on approval when accounts are configured.
  3. Enable Deduct from payroll so active EMI is taken during payroll Calculate.

How recovery works​

  • On each calculated run after the repayment start date, the EMI is deducted when Deduct from payroll is on.
  • After the run is Posted, loan balances and repayment history update on Loan details.
  • Use the Loan recovery report to see EMI recovered through payroll across employees.

:::info Loan vs. expense advance Payroll loans are repaid through salary deduction. Cash advances that settle against expense claims live under Expense advances — different workflow, same company. :::

Next step​

Run payroll

Calculate a run so active loan EMI is deducted.

Run payroll reports

Open the loan recovery report after posting.