Content:
A4Tool allows organizations to disburse loans or salary advances to employees and automatically deduct the repayment installments from their monthly payroll.
Where to find it:
A4Tool allows organizations to disburse loans or salary advances to employees and automatically deduct the repayment installments from their monthly payroll.
- Navigate to Loans in the sidebar.
- Employees can request a loan by clicking Apply Loan.
- They specify the Loan Amount, the Reason, and the requested Number of Installments (months).
- The Reporting Manager or HR Admin reviews the request.
- If approved, the HR Admin must configure the Deduction Start Month.
- The system automatically creates an active Loan Deduction component for the employee.
- During the monthly Payroll Run, the system divides the total loan amount by the number of installments and automatically deducts the EMI from the employee's net pay.
- This continues automatically until the loan balance reaches zero.