Loan Approval Workflow

Purpose

This article explains how loan requests created in HRStop can be reviewed, approved, or rejected by managers or administrators.
The approval workflow ensures that all loan requests are reviewed before disbursement and payroll deduction.

When You May Need This

Use this option when:

Employees raise loan requests through their self-service portal.
Administrators or finance teams need to approve or reject loans before disbursement.
Managers are allowed to review and approve requests as part of the workflow.

Note: The Loan module is always available to administrators by default.
To make the Loan option visible to employees, go to Control Panel → Settings → Payroll, scroll down, and enable Enable Loan Module Visibility for Employees.
If your organization follows a manager + administrator approval hierarchy, also enable Allow Managers to Approve Loan Request from the same section.

Approval Hierarchies in HRStop

1. Default Approval Flow (Administrator Only)

By default, once an administrator approves a loan, it is considered fully approved.
The loan then moves forward for disbursement by the finance team.

2. Manager + Administrator Approval Flow

If the “Allow Managers to Approve Loan” setting is enabled under
Control Panel → Settings → Payroll: Allow Loan, managers can also review and approve loans.
When a manager approves the request, the loan status updates to Manager Approved.
The administrator or finance team can still finalize the approval regardless of the manager’s action.
Administrators always retain the authority to approve or reject loans directly, even when the manager-level approval setting is active.
This provides flexibility — allowing both manager and admin oversight while maintaining admin control.

Step-by-Step Guide

To approve or reject a loan request, you must be logged in as an Administrator with authorized access to the Payroll module.
Navigate to: Control Panel → Payroll → Loan → All Loans
Locate the loan with status Pending or Manager Approved.
Click on the Approve or Reject icon under the Action column.
In the pop-up window, enter your Comments (these are visible to all approvers in the approval chain).
Click Submit to confirm your action.
The loan status will change accordingly to Approved, Manager Approved, or Rejected.
(The “Notes” field on the loan form is used for internal administrative comments and is not visible in the approval process.)

Where It Reflects

Approval updates are visible in the All Loans list (e.g., Pending, Manager Approved, Approved, Rejected).
Employees and managers can track loan approval progress in their Self-Service Portal → Payroll → Loan section.
Once the loan is marked Approved, it becomes eligible for disbursement.

Pro Tips

Always review loan details and attached documents before approving.
Use Comments for visible feedback and Notes for internal admin references.
Complete approvals before payroll processing to ensure EMI deductions begin on time.

Adding a Loan on Behalf of an Employee – Create and configure employee loans.
Marking a Loan as Disbursed – Mark loans as released for EMI deduction.
Recording Loan Repayments (EMI Transactions) – Record manual or automated EMI transactions.