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Function of HR:-

- HR Department collects the employees request for loan/advance.
- Verify and approve/disapprove the request.
- In case of approval of the loan/advances HR sends the Employee information (Like name, designation, employee id, Branch Name etc...) and loan/advance information (Like Loan type, loan amount, interest rate, Number of installment for principal and interest, moratium period, Office order number and remarks) to respective DDO/Finance Department/respective Employee.( for sanction the loan and their information.)

Function of DDO:-

- DDO intimates the finance department regarding the installment deduction for each borrower either in month/year wise.
- Once the entire installment (Principal) for one borrower is complete, DDO need to request the Finance Department for Interest amount and number of installment to repay the interest amount for the same borrower.
- Once the entire installment (Interest) for one borrower is complete, DDO need to request the Finance Department for issuing the clearance certificate for the employee.

Function of Finance:-

- Finance Department Calculate the Interest Amount and intimate it as a letter to Respective DDO.
- Finance Department issues the Clearance Certificate and intimates it as letter to Respective DDO, HR and respective employee.

The Logic to calculate the Interest:

- Interest Amount = (Total Outstanding Amount) * (1/12) * (1/100) * (Interest Rate)
- Total Outstanding Amount is equal to the summation of each month's balance amount (To be paid) till the balance amount is Zero (Up to Last Installment).


Download the Documents

Flow Chart

Data Flow Diagram

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