Advances and employee loans, recovered automatically
Manage company advances, earned-wage access through ABHI and employee loans with approval chains, installment schedules and automatic payroll recovery.
HR Nova.ai manages advance salary and employee loans in separate ledgers. Advances can be company-issued or drawn through ABHI earned-wage access and are recovered in the next payroll. Loans follow an approval chain, run on an installment schedule from an agreed start date, and are recovered monthly within your deduction cap.
What is earned-wage access?
Earned-wage access lets employees draw part of the salary they have already earned before payday. HR Nova.ai pulls the amount drawn through ABHI into the advance ledger and deducts it in that month's payroll automatically.
What you get
Advance salary
Set eligibility, maximum amount and how many advances someone can hold, by grade and tenure. Approved advances are deducted automatically, and any balance left at exit is recovered from final settlement.
Employee loans
Loans move through an HR completeness check, a finance review and managing director approval, or your own chain. Each loan has a type, cap and tenor by grade, an installment schedule from the agreed start date, and the option of early or lump-sum repayment. Where a loan carries interest below your benchmark rate, HR Nova.ai calculates the taxable benefit.
Loans and Advance Salary
Approve advance salary and employee loans, then recover them from payroll automatically within your limits.
- Advance salary on request
- Employee loans with schedules
- Automatic recovery from payroll
- Deduction caps enforced
- BBenRequested
- OOliverApproved
- PPayrollScheduled
Common questions
Can't find your answer? Browse every question or contact us.
01Why are loans and advances kept separate?
They follow different eligibility rules, approval chains, tenors and tax treatment.
02What happens if an employee resigns with a loan outstanding?
The balance is recovered from final settlement, or as a lump sum at exit.
03Can loan deductions exceed our limit?
No. Loan installments count toward the same monthly deduction cap as other deductions.
AI drafts. A named person approves.
Nothing touches pay, ratings or an employee file until a named person signs off, and every approval is logged with their name and the date.
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Explore module| Account | Debit | Credit |
|---|---|---|
| Salaries expense | 1,280,000 | |
| Income tax payable | 192,000 | |
| Pension payable | 76,800 | |
| Loans and other deductions | 34,700 | |
| Salaries payable | 976,500 |
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