Cyborg ERP - Loan and Advance
Paperless, Transparent, Payroll-Synced Employee Finance
The Loan and Advance module streamlines salary advances, institutional loans, and recoveries—from application to approval, disbursement, EMI deduction, and reporting. Built into Cyborg HRMS & Payroll, it removes manual work, enforces policy, and keeps every rupee traceable across campuses, colleges, and departments.
What the Module Delivers
- 🔹 Self-service requests: Employees raise loan/advance applications from their ERP dashboard, attach documents, and choose repayment preferences.
- 🔹 Multi-level approvals: Route to HOD → Finance → Principal/Director (or your hierarchy) with remarks, timestamps, and maker–checker control.
- 🔹 Policy engine: Configure eligibility, sanction limits, tenure, interest type (interest-free or interest-bearing), and recovery rules per employee category.
- 🔹 Automatic EMI & payroll posting: System calculates EMI and posts deductions directly to Payroll, reflecting on payslips without manual edits.
- 🔹 Live visibility: Dashboards show outstanding balance, EMI schedule, approval trail, and disbursement history for employees and approvers.
- 🔹 Finance sync: Approved items flow to Finance & Accounts for ledgers and reconciliation—ready for audit.
Comprehensive Workflow of Loan and Advance Module
How It Works (End-to-End)
- Apply: Employee submits a Loan/Advance request with required documents and preferred tenure.
- Validate: System checks policy eligibility (service length, grade, limit, existing exposure) and routes for approvals.
- Sanction: HOD/Finance reviews terms (amount, tenure, interest, start month), records remarks, and sanctions.
- Disburse: Amount released; EMI schedule auto-generated with start date and deduction month.
- Recover: Monthly EMIs auto-deducted through Payroll; adjustments appear on payslips.
- Monitor: Employee tracks status, statements, and remaining balance; Finance monitors recoveries and exceptions.
Configuration Highlights
- 🔹 Eligibility & caps: By designation/grade/tenure; separate limits for Advance vs Loan.
- 🔹 Loan types: e.g., Personal, Emergency, Festival, Medical (rename/add per institution).
- 🔹 Interest settings: Interest-free or interest-bearing; recovery start month; grace periods (as per your policy).
- 🔹 Pre-closure/part-payment: Allow early closures or extra payments with automatic recalculation.
- 🔹 Document checklist: Define required proofs per loan type; enforce upload before approval.
- 🔹 Alerts: Pending approvals, disbursement reminders, missed/short EMI exceptions.
Payroll and Finance Alignment
- 🔹 Seamless payroll lines: EMI lines generated automatically; arrears and LWP (leave without pay) scenarios handled per policy (carry-forward, split, or manual approval).
- 🔹 Month-end lock: Prevents last-minute manual edits after payroll cutoff; changes post to the next cycle.
- 🔹 Ledger posting: Journal entries pushed to Finance; Recovery Register stays in sync with payroll.
- 🔹 Separation/exit: On resignation or F&F, system computes final outstanding and posts balance recovery per rules.
Employee Experience
- 🔹 Clear status: Submitted → Under Review → Sanctioned → Disbursed → In Recovery → Closed.
- 🔹 Statement on demand: Downloadable loan/advance statement with schedule, paid EMIs, and balance.
- 🔹 Notifications: Auto email/portal alerts for approval, disbursement, EMI start, pre-closure, and closure.
- 🔹 Privacy: Only the employee and authorised roles see request details.
Exceptions You Can Control
- 🔹 Missed/short EMI: Flag to Finance with reason codes (LWP, hold, system lock); carry-forward rules apply.
- 🔹 Multiple concurrent loans: Allow or block per grade; cap exposure by amount or EMI-to-salary ratio.
- 🔹 Change requests: Term/tenure change with approval; system re-plans schedule and updates payroll from the next cycle.
- 🔹 Back-dated recovery: Controlled by Finance; posts adjustments with audit remarks.
Reports & Analytics
- 🔹 Loan Summary / Outstanding Loans
- 🔹 Recovery Register / Advance Adjustment Summary
- 🔹 Sanction vs Disbursement vs Recovery
- 🔹 Aging & Exceptions (missed EMIs, holds, reversals)
- 🔹 Audit extracts to PDF/Excel with user/time stamps and remarks
Security & Compliance
- 🔹 Role-based access for Finance, HR, approvers, and employees
- 🔹 Maker–checker approvals and digital signatures for traceability
- 🔹 AES-256 encrypted storage, auto-audit trail, and transaction logs
- 🔹 Aligned with institutional policies; ISO 27001/GDPR-style practices where applicable
Why Institutions Pick Loan and Advance
- 🔹 Paperless processing: With predictable cycle times for faster disbursement.
- 🔹 Error-free EMI deductions: Automated through seamless payroll integration.
- 🔹 End-to-end transparency: Unified tracking across HR, Payroll, and Finance modules.
- 🔹 Policy consistency: Ensures uniform financial management across multi-campus structures.
- 🔹 Audit-ready records: Complete traceability—no manual collation at review time.
Streamline Employee Loans & Advances with Cyborg ERP
Empower your institution with a paperless, transparent, and payroll-integrated loan management system. From application to recovery, every step is automated, traceable, and policy-driven — ensuring financial discipline and zero manual errors across HR, Payroll, and Finance.
📚 Frequently Asked Questions (FAQs)
Yes—set eligibility, limits, tenure, and interest per designation or grade.
Per policy: carry-forward, split over future months, or manual approval for adjustments.
If enabled, pre-closure or part-payment recalculates the schedule and updates Payroll automatically.
Use your hierarchy (e.g., HOD → Finance → Principal/Director) with full maker–checker control.
Yes—employees can download statements anytime, including EMI history and outstanding balance.
Yes—sanctions, disbursements, and recoveries sync directly with Finance & Accounts for ledgers and reconciliation.
