What is the difference between an advance and a loan?

Created by HR HUB, Modified on Thu, 22 Aug, 2024 at 12:39 PM by HR HUB

In the loan management module of HR HUB:

  • Advance Amount: This is a short-term financial assistance given to an employee, typically repaid through future salary deductions. It is usually smaller and meant for immediate needs.
  • Loan Amount: This is a larger sum provided for longer-term financial requirements, often with a formal agreement on interest rates and a structured repayment plan over an extended period.

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