> For the complete documentation index, see [llms.txt](https://vezolve.gitbook.io/activebooks/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://vezolve.gitbook.io/activebooks/hr/loans/loan-application.md).

# Loan Application

Loan Application is a document which contains the information regarding the Loan Applicant, Loan Type, Repayment Method, Loan Amount and Rate of Interest.

Employee can apply for loan by going to:

> Human Resources > Loan > Loan Application

### 1. Prerequisites[ ](https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/loan-application#1-prerequisites) <a href="#id-1-prerequisites" id="id-1-prerequisites"></a>

Before creating a Loan Application, it is advisable to create the following documents:

* [Employee](https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/employee)
* [Loan Type](https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/loan-type)

### 2. How to create a Loan Application[ ](https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/loan-application#2-how-to-create-a-loan-application) <a href="#id-2-how-to-create-a-loan-application" id="id-2-how-to-create-a-loan-application"></a>

1. Go to: Loan Application > New.
2. Enter the Applicant name.
3. Enter loan information such as a Loan Type, Loan Amount and Required by Date.
4. Select the [Repayment Method](https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/loan-application#31-repayment-method) and based on loan information, information such as Total Payable Amount and Interest will be calculated.
5. Save and Submit.

   <img src="https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/%7B%7Bdocs_base_url%7D%7D/v13/assets/img/human-resources/loan-application.png" alt="Loan Application" data-size="original">

### 3. Features[ ](https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/loan-application#3-features) <a href="#id-3-features" id="id-3-features"></a>

#### 3.1 Repayment Method[ ](https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/loan-application#31-repayment-method) <a href="#id-31-repayment-method" id="id-31-repayment-method"></a>

There are two types of Repayment Methods in Loan Application:

**1. Repay Fixed Amount Per Period**[ ](https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/loan-application#1-repay-fixed-amount-per-period)

* Enter the Monthly Payment Amount.
* Save.
* Once saved, based on the Rate of Interest, the Total Payable Interest and Total Payable Amount will be calculated along with Period in Months.
* Submit.

  <img src="https://docs.erpnext.com/files/repayment1.png" alt="Repayment Fixed Amount Per Period" data-size="original">

**2. Repay Over Number Of Periods**[ ](https://docs.erpnext.com/docs/v13/user/manual/en/human-resources/loan-application#2-repay-over-number-of-periods)

* Enter the Repayment Period in Months.
* Save.
* Once saved, based on the Rate of Interest, the Total Payable Interest and Total Payable Amount will be calculated along with Monthly Repayment Amount.
* Submit.

  <img src="https://docs.erpnext.com/files/repayment2.png" alt="Repayment Fixed Amount Per Period" data-size="original">

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