Multi-Level Approval Workflow

Complete loan lifecycle with Draft → Submitted → Department Approved → HR Approved → Paid/Disbursed → Done/Closed stages with role-based approval controls.

Flexible Interest & Installments

Support for No Interest, Flat, and Reducing Balance interest types with automatic EMI computation. Skip installment requests with configurable handling.

Full Accounting Integration

Automatic journal entries for loan disbursement and EMI recovery. Configure loan journals, receivable accounts, disbursement accounts, and interest income accounts per loan type.

Loan Policies & Eligibility

Configurable qualifying periods, gap between loans, monthly/yearly request limits, employee tag-based eligibility, and mandatory proof document uploads.

Native Odoo Integration

Seamlessly integrates with Odoo HR, Accounting, and optional Payroll modules. Supports payroll deduction and direct cash/bank repayment methods.

Configure User Access Rights

Assign Employee Loan Management security roles — Department Manager, HR Manager, and HR Officer — to control who can request, approve, and manage loans.

Navigate to Loan Types Configuration

Go to Employee Loans → Configuration → Loan Types to define different loan categories with interest settings, limits, repayment methods, and policies.

Configure Loan Type Details

Set up interest type, installment term, loan limits, repayment/disburse methods, policy rules, eligibility criteria, and required proofs for each loan type.

Create Loan Journal

Go to Invoicing → Configuration → Journals and create a dedicated Loan Journal for recording all loan-related accounting entries.

Configure Accounting on Loan Type

Scroll down on the Loan Type form to configure the Accounting section — set the Loan Journal, Loan Receivable Account, Bank/Cash Disbursement Account, Payroll Liability Account, and Interest Income Account.

Configure Loan Proofs

Navigate to Employee Loans → Configuration → Loan Proofs to define required proof document types (e.g., ID proof, salary slip, address proof) that employees must upload with their loan request.

Create a New Loan Request

Go to Employee Loans → Employee Loans and click New to create a loan request. Fill in employee details, select the loan type, amount, start date, and repayment method. The module auto-populates settings from the selected loan type.

Upload Loan Documents

Switch to the Documents tab on the loan form to upload all required proof documents before submitting the request.

Compute Installments

Click the Compute Installments button to automatically generate the EMI schedule based on the loan amount, interest type, rate, and installment term.

Submit Loan Request

Click Submit Request to send the loan for approval. The system validates all policy rules, eligibility criteria, and required proofs before allowing submission.

Department Manager Approval

The department manager receives an activity notification and can click Department Approve to advance the loan to the next approval stage.

Department Rejection Option

The department manager can also click Department Reject to reject the loan with a reason, notifying the employee.

HR Manager Approval

After department approval, the HR manager receives a notification and can click HR Approve for final approval.

HR Rejection Option

HR can also click HR Reject to reject the loan at this stage with a documented reason.

Loan Disbursement (Paid/Disbursed)

Once HR approved, the loan moves to Paid/Disbursed state. A disbursement journal entry is automatically created. The full approval trail is visible in the chatter.

Pay EMI Installment

Click the Pay EMI button on any pending installment line to initiate a manual cash/bank payment for that installment.

Confirm EMI Payment

The Pay Installment wizard opens with payment details pre-filled. Select the Payment Journal (Bank/Cash) and click Confirm Payment to record the EMI and create a recovery journal entry.

EMI Paid with Journal Entry

After payment, the installment shows as Paid with the Cash/Bank method and a linked Recovery Journal Entry. The Paid Amount and Balance Amount update automatically.

View Journal Entry

Click the Journal Entries smart button to view the posted disbursement and recovery journal entries with full audit trail.