## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/in/payroll/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Loans

The Loans module in Zoho Payroll helps you manage all the loans that you’ve provided to your employees. You can deduct repayments from the employees’ salaries each month, set perquisite rates and record manual repayments as well.

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## Recording Loans

To record a loan,

*   Go to the **Loans** module.
*   Click **Record Loan**.

![Record Loan](/in/payroll/help/images/loans/record-loan.png)

*   Select a **Loan Type**.
*   You can create loan types by clicking **Manage Loans**. Simply enter a name and the perquisite rate, then click **Save and Continue**.

> Note: Perquisite rate is the percentage of the loan amount which will be considered as a perquisite. It should ideally match the rate provided by the State Bank of India.

*   Select the employee for whom you’re recording the loan.
*   Enter the **Loan amount** and **Disbursement date**, which is the date on which the employee received the loan.
*   If the disbursement date falls in the prior payroll and the loan is partially repaid, enter the **Loan Opening Balance** and the **Perquiste Opening Balance** to continue the remaining repayments in Zoho Payroll. In case no repayments have been made, enter the actual loan amount as the Loan Opening Balance.

> Note: If you have enabled Zoho Books integration, you can select the bank account through which the loan was disbursed under **Paid Through Account**.

*   Enter a reason for providing the loan.
*   Select whether you want to exempt perquisite calculation for this loan. Loans provided for medical reasons and loans under Rs. 2,00,000 (Rs. 20,000 prior to April 1, 2026) should be exempted from perquisite calculation.
*   Enter the **Repayment Start Date** and **Instalment Amount**.
*   Click **Save**.

![Record Loan Details](/in/payroll/help/images/loans/loan-details.png)

Your employees can view the details of the loans they’ve received by logging in to their employee portal.

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## Recording Manual Repayments

Once you’ve recorded a loan, the repayments will be automatically deducted from the employee’s income each month. You can also record manual repayments by following these steps:

*   Go to the **Loans** module.
*   click the loan for which you want to record repayment.
*   Click **Record Repayment**.

![Record Repayments](/in/payroll/help/images/loans/record-repayment.png)

*   Enter the **Repayment Amount**.
*   Select a **Repayment Date**.
*   Select the **Payment Mode** used by the employee to make the repayment.

> Note: If you have enabled Zoho Books integration, you can select the bank account to which the loan was repaid under **Deposit to Account**.

*   Enter the **Reference Number**. (optional)
*   Click **Record Repayment**.

![Record Repayment Details](/in/payroll/help/images/loans/repayment-details.png)

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## Managing Loans

You can manage created loans by following these steps:

*   Go to **Loans module**.
*   Click **Manage Loans**.
*   Click the **Edit** icon to make changes to the **Loan Name** and **Perquisite Rate**.

> Note: Perquisite rate is the percentage of the loan amount which will be considered as a perquisite. Ideally, it should match the [rate provided by the State Bank of India](https://sbi.co.in/web/business/information/interest-rates-perquisite-calculation).

*   Click **Save**.
*   Click **\+ New Loan Type** to create a new loan type.

![Manage Loans](/in/payroll/help/images/loans/manage-loans.png)

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## Pause and Resume Loans

During times of great financial crisis, it would be great to offer financial support to your employees. Zoho Payroll allows you to pause employees’ loan instalment deductions briefly using the Pause option.

To pause a loan:

*   Go to the **Loans** module.
*   Select the employee for whom you want to halt the loan repayments temporarily.
*   Click the **More** icon (three horizontal dots) on the top right corner and select **Pause Instalment Deduction**.

![Pause Loans](/in/payroll/help/images/loans/pause-instalment-deduction.png)

*   You can choose to pause the loan instalment deductions **Immediately** or from a **Scheduled month**.
*   If you’ve selected **On Scheduled Month**, select the month from which the instalments need to be paused.
*   Select the month from which you want to resume the loan deductions. If you do not want to specify it, you can leave it empty.
*   Enter a reason and click **Save**.

![Pause Loans](/in/payroll/help/images/loans/loan-pause-details.png)

The loan deductions will be paused for the employee for the selected period. You can find these details in the respective employee’s profile under the **Loans** tab as well as in the **Loans** module. You can also select or edit the month on which you want to resume the loan deductions here.

![Pause Loans](/in/payroll/help/images/loans/loan-paused.png)

Alternatively, you can edit the resume month after you’ve processed the next pay run.

To change the resume month:

*   Go to the **Loans** module and click the loan you want to resume.
*   In the information banner on top of the loan details, click **Edit Resume Month**.

![Edit Resume Month](/in/payroll/help/images/loans/edit-resume-month.png)

*   In the pop-up, choose when you want to resume the loan deductions, **Immediately** or **On a Scheduled Month** and click **Save**.

![Resume Month](/in/payroll/help/images/loans/resume-loan.png)

Loans deductions will be resumed accordingly.

![Loan Overview](/in/payroll/help/images/loans/loan-overview.png)

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## Deleting Loans

**Prerequisites**

*   It should not be involved in the previous or the current pay runs.
*   It must not have any perquisite calculations associated with it.

To delete an open loan:

*   Go to the **Loans** module.
*   Select the employee for whom you want to delete the loan.
*   Click the **More** icon and select **Delete Loan**.
*   Select **Yes** to confirm that you want to delete the loan. 

To delete an open loan which was involved in a pay runs or multiple pay runs and has associated perquisite calculations, [revert the pay run](/in/payroll/kb/employer/pay-runs/how-to-revert-payroll.html) and then follow the mentioned steps above.

![Delete Loans](/in/payroll/help/images/loans/delete-loan.png)

### Deleting a Manual Repayment

You can delete manual records of loan repayment in the Loans module as long as the payroll for the repayment month is not processed. If the pay run is processed, you will have to [revert the pay run](/in/payroll/kb/employer/pay-runs/how-to-revert-payroll.html) and then delete the loan repayment record. To delete:

*   Go to the **Loans** module.
*   Select the employee for whom you want to delete the loan.
*   Click the **Trash** icon next to the manual repayment record. 
*   Select **Yes** to confirm that you want to delete the loan.

![Delete Manual Payment](/in/payroll/help/images/loans/delete-manual-payment.png)