To add a new loan type to the system, follow the below steps:
Click on Configuration or Admin and then click Settings.
Select Module Settings and then select Payroll Settings.
Select Employee Loan Type and then select Add Loan Type
This will open a new dialog with 3 fields:
Pay Element code - this must match payroll.
Description - enter a name/description for this loan type.
Pay Element type - select addition or deduction.
📌Note: You will need to create a loan type for additions and deductions. If you do not create a deduction type no payments will be deducted within HR.