---
title: "Loan Application"
space: "Frappe HR"
url: "https://docs.frappe.io/hr/loan-application"
updated: "2026-02-04"
---

**Loan Application is a document which contains the information regarding the Loan Applicant, Loan Type, Repayment Method, Loan Amount and Rate of Interest.**

Employee can apply for loan by going to:

> Human Resources > Loan > Loan Application

**1. Prerequisites**
--------------------

Before creating a Loan Application, it is advisable to create the following documents:

* [Employee](https://docs.frappe.io/hr/employee)
* [Loan Type](https://docs.frappe.io/hr/loan-type)

**2. How to create a Loan Application**
---------------------------------------

1. Go to: Loan Application > New.
2. Enter the Applicant name.
3. Enter loan information such as a Loan Type, Loan Amount and Required by Date.
4. Select the [Repayment Method](https://docs.frappe.io/hr/loan-application#3-1-repayment-method) and based on loan information, information such as Total Payable Amount and Interest will be calculated.
5. Save and Submit.

![Loan Application](https://frappehr.com/files/loan-application99399a.png)

**3. Features**
---------------

### **3.1 Repayment Method**

There are two types of Repayment Methods in Loan Application:

#### **1. Repay Fixed Amount Per Period**

* Enter the Monthly Payment Amount.
* Save.
* Once saved, based on the Rate of Interest, the Total Payable Interest and Total Payable Amount will be calculated along with Period in Months.
* Submit.

![Repayment Fixed Amount Per Period](https://frappehr.com/files/repayment-period-in-months.png)

#### **2. Repay Over Number Of Periods**

* Enter the Repayment Period in Months.
* Save.
* Once saved, based on the Rate of Interest, the Total Payable Interest and Total Payable Amount will be calculated along with Monthly Repayment Amount.
* Submit.

![Repayment Fixed Amount Per Period](https://frappehr.com/files/repayment2.png)

**4. Related Topics**
---------------------

1. [Loan Type](https://docs.frappe.io/hr/loan-type)
2. [Loan](https://docs.frappe.io/hr/loan)