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Query on Loans

Our client, is giving a loan to employees. But have a query on few of their loan conditions:

The loan amount will be repaid over period of 5 years, i.e. 60 equal installments which will be deducted from salary.

1. If the employee wants, he can repay the loan outstanding amount at one go any time during the loan, but he cannot do this more than once, i.e. he cannot have multiple part repayments. Is there any way for the system to prevent part payments by employee more than once.

2. Secondly, regarding the loan interest:

  • The loan will be interest free only in cases where the employee remains employed with the company for a period of 5 years post availing the loan.
  • If an employee who has availed this loan leaves the company during the period 1-3 years post availing loan then interest will be charged @ declared by the SBI as on 1st April every year on reducing balance from the date of the loan.
  • If an employee who has availed this loan leaves the company during the period 3-5 years post availing loan then interest will be charged @ 10% on reducing balance from the date of the loan.

Is there any way these conditions of loan interest can be provided?


Request if somebody can advise me on the above points


Thank you

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    author's profile photo Former Member
    Former Member
    Posted on Jun 07, 2016 at 06:51 AM

    1) You can code this in user exit EXIT_SAPFP50M_002, the check would be on infotype 78.

    2) When will the interest be deducted in the second & third cases? Would it be at the time of separation? You could probably create separate loan conditions for each case.

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 28, 2016 at 06:50 AM

    One more query regard to this loan. The client has a requirement, that, the furniture loan is interest free if the employee remains with the company for a period of 5 years from the date of availing the loan. However, if the employee avails the furniture loan, and then the employee leaves the company within 3 years of availing the loan, then the interest should be charged at the rate declared by SBI as the prime lending rate, as on 1st April each year, on the reducing balance from the date of the loan.

    What they want, that, if suppose employee took the loan on 1 July 2016, then if the employee resigns in June 2019, then, the loan interest should be changed such that:

    the interest should be calculated for each year, at the interest rate declared by SBI as on 1 april of that year. So interest should be calculated separately for:

    1. the period july 2016 to march 2017 with interest rate as declared by SBI on 1 april 2016,
    2. then for the period april 2017 to march 2018 interest should be calculated with rate as declared by SBI on 1 april 2017
    3. then for the period april 2018 to march 2019 the interest should be calculated with rate as declared by SBI on 1 april 2018
    4. then for the period april 2019 to june 2019 the interest should be calculated with rate as declared by SBI on 1 april 2019

    Is it possible to meet this type of requirement?

    The interest rates for each year can be maintained as a constant which I will add in table T511K.

    But how to make the system calculate the interest in the way they require each year? Is there any way for this?

    And another requirement they have is that, once the loan infotype is maintained on infotype 0045, the HR should not be able to manually change the instalment amount or the number of instalments / loan tenure after that. Is this possible?

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 07, 2016 at 06:19 AM

    Dear All

    Request if somebody can advise me on this query. Can these requirements be provided by standard SAP or do we need to go for custom programming for this?

    Regards

    Madhur

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  • author's profile photo Former Member
    Former Member
    Posted on Jun 28, 2016 at 09:27 AM

    And another requirement they have is that, once the loan infotype record is maintained on infotype 0045, the HR should not be able to manually change the instalment amount or the number of instalments / loan tenure after that. Is this possible? Please advise me, thanks

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