Creating a loan system for employees is crucial for handling loans properly, following the law, and preventing problems. It sets up a clear process for applying, approving, and paying back loans, and ensures that only eligible employees receive them. This policy promotes honesty & responsibility and safeguards the organization's money while also improving trust, happiness, and work efficiency among employees.

After enabling the Loan Workflow feature, you, as admin, must define the loan workflow policy as per the company’s requirements. You can customize the workflow levels to define and add reviewers for loan applications. The feature enables you to add up to 5 levels of reviewers for approval.

The Workflow Levels page in the greytHR Admin portal helps you to set up the policy and reviewers for the loan applications.

To view the Workflow Levels page, click Workflow > Setup > Workflow Levels.

You can perform the following actions on the Workflow Levels page:

Set up loan workflow policy.
Edit loan workflow policy.

Set up loan workflow policy

To set up a loan workflow policy, perform the following actions:

On the Workflow Levels page, click Add Workflow Levels. The form opens.
Under General Settings, from the Select workflow type dropdown list, select Loan.
In the Policy Name text box, enter a name for the policy.
In the Policy Description text box, enter a description of the policy.
From the Select Loan Component dropdown list, select the required loan component.
From the Select Employee Filter dropdown list, select the required option.
Click Save Policy to save the General Settings.
Click Next to move to the Workflow Levels settings.
Select any 1 of the 1 Level/2 Levels /3 Levels/ 4 Levels/ 5 Levels options as per your requirements.
From the Reviewer Level 1 dropdown list, select a job role as the first reviewer. When an employee applies for a loan, the application goes to the selected job role for approval first.
Note:
1. To add multiple reviewers, repeat steps 1-9.
2. You can also add the employees’ reporting managers as reviewers.
Select the Application Actions option as Accept & Froward/Reject/Accept as per your requirements.
Note: You can also override the employee’s application by selecting the Override option.
Click Save Policy to save the loan workflow levels settings.
Click Next to move to Workflow Policy settings.
In the Loan Settings section, from the Loan Component dropdown list, select the required loan component.
From the Loan Policy Document dropdown list, select the policy document.
In the Loan Limit text box, enter the required amount.
In the Max Loan Tenure text box, enter the duration of the loan.
In the Months to Start EMI text box, enter the required EMI months.
In the Interest Rate and Perquisite Rate text box, enter the rates.
From the Interest Type dropdown list, select the required interest type.
In the Eligibility Settings section, under the Max Eligibility, in the X Amount of text box, enter the loan eligibility amount of the employee.
From the Salary Component dropdown list, select the required component.
In the Months in service to apply loan text box, enter the number of months.
From the This loan cannot be applied with dropdown list, select the required option.
Select Attachment Mandatory and Remarks Mandatory options using the checkbox if required.
In the Disbursement Settings section, select the Last reviewer can update loan disbursement detail option.
Select Loan disbursement details mandatory to approve the loan option.
Note: Actions in the Disbursement Settings section are performed by the last reviewer of the application.
Click the Review and Submit button to create a loan workflow level.

Edit loan workflow policy

To edit a loan workflow policy, perform the following actions:

On the Workflow Levels page, click the Filter icon. The Apply Filters pop-up appears.
From the Workflow Type dropdown list, select Loan.
Click Apply to filter all the loan workflow policies created earlier.
Select and click the loan policy card you want to edit. The card expands.
Click View Details. A page opens.
Edit the policy settings as per your requirements.
Click Save Policy to save the settings.
Click Next to move to the Workflow Policy settings.
Update the required changes. Click Save Policy and Next to finish editing the loan workflow levels policy.

Note:

You can also delete, disable an active policy, and activate a draft policy using the Delete, Disable, and Activate buttons available on the required loan policy card.
You can also manage and control the activities that a manager can perform from the User Roles page. You must enable the access rights for the Apply Loan on Behalf of Employee feature to allow managers to apply for loans on behalf of employees.

After you have set up the loan workflow policy, employees are all set to apply for loans as per their requirements. After employees apply for loans, the next step is for you, as admin, to review the loan application.

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