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

**Loans can be categorized into different types based on their specific characteristics.**

In Frappe HR, you can define different Loan Types, their Rate of Interest and other related information in the Loan Type doctype.

To access Loan Type go to:

> Human Resources > Loans > Loan Type

**1. How to create a Loan Type**
--------------------------------

1. Go to: Loan Type.
2. Enter the Loan Name.
3. Enter the Rate of Interest (%) Yearly.
4. Optionally, you can also enter the Maximum Loan Amount and Description of the Loan Type.
5. Save.

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

**2. Related Topics**
---------------------

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