Adjusting Loan EMI:

When an employee pays an additional amount toward an ongoing loan outside regular salary EMI deductions (e.g., cash payment), the loan EMI can be adjusted using the 'Receipt Recovered' option available on the Manage Loan page.


Navigate to Pre-process Menu -> Loans (EMI Based) first, Select and employee and click on 'Manage Loan' icon shown under action menu:



At Manage Loan page switch to 'Receipts Recovered' tab:



Click on the “Add New Receipt” option shown here for Loan's adjustment / Pre-payment. 



EMI Adjustment options:


Option 1: Adjust EMI Amount with All Current & Future Pending Months

This will reduce the EMI by adjusting current and future EMI amount. For example, If an employee takes a loan of ₹200,000, and the total loan amount after including interest is ₹202,000, but they have already paid two installments totaling ₹20,200, and then paid ₹100,000 in advance for adjustment:

  1. Click on the “Adjust EMI Amount with All Current & Future Pending Months” option.
  2. Insert the advance payment amount (₹100,000).

Formula: The adjusted amount is divided by the total remaining pending months to calculate the adjusted EMI receipt.



 

Option 2: Adjust EMI Amount with Pending Months from Last

This will adjust full amount of pending EMI from the final month’s EMI. For example, if an employee takes a loan of ₹200,000, and the total loan amount after including interest is ₹202,000, but they have already paid two installments totaling ₹20,200, and then paid ₹100,000 in advance for adjustment:

  1. Click on the “Adjust EMI Amount with Pending Months from Last” option.
  2. Insert the advance payment amount (₹100,000).

Formula: The advanced payment will be adjusted with the last months of the EMI. For example, if the EMI started in July 2024 and ended in February 2026, the adjustment will be applied from February 2026 to June 2025. The employee will then pay the remaining amount from September 2024 to May 2025.



Option 3: Adjust EMI Amount with Pending Months from Current

This will adjust full amount of pending EMI from current month. If an employee takes a loan of ₹200,000, and the total loan amount after including interest is ₹202,000, but they have already paid two installments totaling ₹20,200, and then paid ₹100,000 in advance for adjustment:

  1. Click on the “Adjust EMI Amount with Pending Months from Current” option.
  2. Insert the advance payment amount (₹100,000).

Formula: For example, if the loan tenure started in July 2024 and ends in February 2025, and the employee has already paid two months' EMI, the advance payment of ₹100,000 will adjust the EMI for the months from September 2024 to May 2025. The EMI will then resume from June 2025 with the remaining amount.