Loan Application in Frappe HR: Requesting an Employee Loan
A Loan Application is an employee’s request for a loan of a chosen product and amount, with a proposed repayment plan. It goes through approval before becoming an actual loan, so loans are reviewed and sanctioned rather than created directly.
You will find it under Home > Human Resources > Loans > Loan Application.
BEFORE YOU START
Have the Employee (applicant) and the Loan Product they’re applying for set up, since the application draws its terms from the product.
How to create a Loan Application
- Open the Loan Application list and click New.
- Select the Applicant (the employee) and the Loan Product.
- Enter the Loan Amount requested within the product’s maximum.
- Choose the Repayment Method, for example, a number of repayments or a fixed amount per period. The rate of interest is taken from the product.
- Save, then Submit for approval.
From application to a sanctioned loan
The application is the request-and-approval step. Once it’s approved, a Loan can be created from it — carrying over the amount, interest, and repayment plan. That keeps a clear trail: every sanctioned loan started as a reviewed application, never an ad-hoc entry.
TIP
Have the employee set a realistic repayment method on the application repayments are usually recovered from salary, so the per-period amount should be something their pay can comfortably absorb. Getting this right up front avoids painful deductions later.
Related Topics
- Loan Product
- Loan
- Loan Repayment
- Loan Interest Accrual
SUMMARY
A Loan Application is an employee’s request for a loan of a given product and amount, with a repayment method, subject to approval. Create it by selecting the applicant and loan product, entering the amount (within the product’s limit), and choosing a repayment method with the interest rate taken from the product. On approval, a Loan is created from it, keeping a clear trail from request to sanctioned loan. A realistic repayment method avoids harsh salary deductions later.
