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Payroll

Loans

Offer staff loans with clear rules, approve applications, and recover repayments through payroll.

Employees apply for loans from the KalHR app. A loan policy sets the rules; an approval workflow decides who approves; repayments are then taken from salary. Loans are under More → Loans.

Create a loan policy

Loan policies with their interest, tenure and limitLoan policies with their interest, tenure and limit

  1. Open Loans → Policies and select Create Loan Policy.
  2. Choose the company and enter a Policy Name and description.
  3. Choose how interest is calculated: None (interest-free), Flat Rate or Reducing Balance, and the Interest Rate (% per year).
  4. Set the shortest and longest repayment period (Min Tenure and Max Tenure, in months).
  5. Set a limit: a Max Amount, a Max Salary Multiple (for example 3 × monthly salary), or both. At least one is required.
  6. Set who qualifies: the Min Months of Service, and the Max Concurrent Loans someone can hold.
  7. Select Save Policy.

Set up loan approval

Open Loans → Settings → Approvals and set up who approves loan applications. See Approval workflows. Approvers act on applications in More → Approvals → Requests.

Manage applications

Loan applications and their statusLoan applications and their status

Loans → Applications lists every application. Filter by status, or search by employee or policy. Select one to see the amount, interest, total repayable, monthly repayment, what has been repaid and what's outstanding, plus who approved it.

  • Mark Disbursed: once an approved loan has been paid to the employee, record it.
  • Record Repayment: record a payment made outside payroll, with the amount, date and a reference.
  • Cancel Loan: cancel a pending or approved loan before it's paid out.

Repayments through payroll

Once a loan is approved, KalHR builds a Repayment Schedule: each month's due date, principal, interest and what remains. Monthly repayments are deducted from the employee's salary in each payroll run, shown as Loan Repayment on their payslip. Payments recorded by hand appear alongside under Repayment Transactions. Both lists export to CSV.

StatusMeaning
PendingWaiting for approval
ApprovedApproved, not yet paid out
Disbursed / ActivePaid out and being repaid
CompletedFully repaid
Rejected / CancelledNot going ahead

Last updated October 7, 2026

Still need help?

Try it in the app, or talk to us and we'll walk you through it.

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