Understanding Loans

Many Malaysian organizations offer loans to meet the short-term and long-term needs of their payees. The loan is recovered by the organization over a period of time, through periodic installments that are deducted from the payroll. Global Payroll for Malaysia enables you to process loan payments, and monitor and process loan repayments.

Three types of loan deductions are delivered as sample data:

• Home loans (LN DEDUCT 2)

  These loans are used to purchase or construct a house, or to improve existing property.

• Car loans (LN DEDUCT 3)

  These loans are used to purchase new or used cars.

• Company loans (LN DEDUCT 1)

  These loans are used to purchase consumer goods, or to pay for education or weddings.

Global Payroll for Malaysia enables you to:

• Define different types of loans.

• Define repayment schedules based on loan type.

• Deduct loan repayments according to the loan schedule.

• Apply a straight-line interest calculation.

• Update loan balances as repayments are made.

• Provide loan and interest balances.

• Modify the loan recovery schedule.