Advance and loan limits
How much a person can ask for as a salary advance or a loan, how the limits are checked again when HR approves or issues, issuing over the limit with a reason, and where the limits are set.
Salary advances and loans have limits, so nobody owes more than they can pay back from their salary. The limits are checked by the server every time: when a person asks, when a manager or HR approves, and when HR issues a loan.
What staff see
Before typing an amount, a person sees their own limit, for example You can ask for up to ₹25,000. The amount box stops at that number, and Send stays off above it.
If they can’t ask at all right now, the form says why in plain words, for example:
- “You can ask for an advance after a few months of work here.”
- “You can’t take an advance while a loan is open.”
- “You already owe the most allowed. Pay some back first.”
- “Your monthly cuts from salary are already at the limit.”
When HR raises a request for someone else, the limit is shown only to people who can see private values.
The limits
All of these are your company’s settings. The defaults are:
| Limit | Default | What it means |
|---|---|---|
| Most a person can owe | 3 × monthly gross | Open advances, open loans and the new amount together. |
| Most cut from salary each month | 50% of monthly wages | All advance and loan cuts together. The Code on Wages allows up to 50%. |
| Loans open at once | 1 per policy | Set on each loan policy. |
| Advance while a loan is open | Allowed | Turn off to stop a person having both at the same time. |
| Months of work before an advance | 3 | 0 lets new joiners ask at once. |
The salary advance cap (a percent of one month’s salary) and the longest recovery still apply as before. A loan policy’s maximum amount still applies to loans.
If the monthly cuts would go over the limit, the refusal suggests a number of months that fits.
Partial recoveries count. An advance that has been partly paid back only counts what is still owed, the same as a loan. This also makes full and final settlements show the right amount still owed.
When HR approves or issues
The limits are checked again when an advance is approved and when HR issues a loan from Payroll › Loans, because the person’s pay or other loans may have changed since they asked. The issue form shows the person’s limits and how far over the amount is.
Issuing over the limit
Sometimes you need to lend more, for example for a medical emergency. Only a person who can approve payroll for the whole organisation, or the tenant admin, can issue over the limit, and they must write a reason. The reason is saved on the loan and shows on it in Payroll › Loans as Issued over the limit. with the reason beside it.
Where to set them
- Setup › Settings › Advances and loans: most a person can owe, most cut from salary each month, advance while a loan is open, and months of work before an advance. A change applies to requests raised, approved or issued after you save. Money already lent is not changed.
- Payroll › Loans › Policies: each policy’s maximum amount, longest repayment and how many loans a person can have open at once.
See also Payroll money inputs and My pay.