Administrators and loan managers configure available employee loan products and oversee application reviews and approval workflows in ClayHR.

Who does what?

• Employee: Requests the loan and accepts approved terms.
• Loan Manager: Maintains loan types, reviews applications and manages approval routing and loan records.
• Loan Approver: Approves or rejects assigned requests and records comments.
• Loan Coordinator: Supports employee communication and counseling.
• Finance/Payroll User: Coordinates disbursement and salary-linked installments.

Loan managers are users with the Loan Management permission. The design also shows Setup Admins and Site Admins able to view applications and participate in approval-flow assignment, subject to configured access.

1. Navigate to configuration

1. Open Compensation and Benefits.
2. Select Loans.
3. Choose Loan Type Configuration. The Loans area also provides Loan Configuration.

2. Add or update loan types

1. Open the Loan Types list and choose New Loan Type.
2. Enter the Loan Type Name, Purpose of Loan and annual Interest Rate.
3. Select Add Loan Type.
4. To edit an existing type, open it from the list, change the details and select Update Loan Type.

Examples include Personal, Mortgage and Vehicle Loans. The interest rate attached to the selected loan type is used for estimated repayments shown on the employee request form.

3. Design the approval workflow

Approval flows can vary with loan amount, organizational unit and employee group. For illustration, the preproduction demonstration separates applications below GHS 100,000 from applications above that amount for EXCO and non-EXCO employees. These are sample client-specific thresholds, not standard ClayHR defaults.

Specify the review participants, approval order and rules used for routing. The design shows sequential notifications and discusses parallel approvals as a possible workflow model.

4. Review loan applications

1. Open the Loans homepage and select Loan Applications.
2. Select an application to inspect requested amount, loan term, existing loans, monthly repayments, applicant details and attachments.
3. Review income, provident fund security, combined installments and eligibility. The illustrated policy sets the installment-to-income ratio below 50% and requests additional security where required.
4. Where supported by the configuration, adjust financial-assessment fields during administrator review and confirm the recalculated results.
5. Assign the relevant approval flow if it was not already assigned, and select Send for Approval when available.

5. Process approvals and request acceptance

Approvers receive email notifications and can approve or reject with comments. Following final approval, the loan team initiates Send for Acceptance, notifying the employee to review and accept the finalized offer.

Configuration note: The design includes both a manual approval-flow assignment step and a demonstrated flow that is automatically selected when a loan application is created. Check which process your organization uses.

After acceptance

Employee acceptance is followed by loan finalization or creation and disbursement arrangements; it is not the same as disbursement. For these activities, consult Managing Loan Creation, Disbursement and Repayment.

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