Step 1 - Navigate to Loans & Salary Advances
Login to Asanify as an Admin.
From the left navigation pane, click on Payroll and then click on Loans & Salary Advances.
This will display all active and past loans for your employees.
Step 2 - Locate the Employee's Loan
You can use the search bar at the top to search by Employee Name or Employee ID.
You'll see key details including:
Employee Name
Loan Name
Status (must be Active)
Total Amount
Remaining Amount
Remaining Installments
Step 3 - Open the Foreclose Loan Dialog
For the loan you want to foreclose, click on the More dropdown button in the Actions column.
From the dropdown menu, click on Foreclose Loan (displayed in red).
Note: The Foreclose Loan option is only available for loans with Active status.
Step 4 - Review Foreclosure Details
A side panel will open titled Foreclose Loan.
You'll see an informational message:
"The outstanding loan balance will be adjusted in the upcoming payroll"
This means the full remaining loan amount (principal + interest) will be deducted from the employee's next salary when you run payroll.
Step 5 - Add a Reason (Optional)
If you want to document why the loan is being foreclosed, click on the + Reason button.
A text area will appear where you can enter an optional reason (up to 500 characters).
This helps maintain a record for future reference.
Step 6 - Foreclose the Loan
Click on the Foreclose Loan button at the bottom of the dialog.
The system will:
Calculate the total outstanding amount (remaining principal + interest)
Validate that the employee's next salary is sufficient to cover this amount
Mark the loan for full prepayment in the next payroll cycle
A success message will appear: "Loan foreclosed successfully"
Step 7 - Verify the Updated Installment Schedule
After foreclosing the loan, you can verify the changes.
Click on the More dropdown button again and select View Installments.
You'll see the updated installment schedule showing:
All previous installments that have been Paid
A final installment marked as Projected for the full remaining amount
The loan end date adjusted to the next payroll month
Step 8 - Process Payroll to Complete the Foreclosure
The loan foreclosure will be executed when you run your next payroll.
When you run payroll:
Navigate to Payroll > Run Payroll
Select the month and click Run Payroll
The foreclosed loan amount will automatically be deducted from the employee's salary
Review the Payslip Preview to see the loan deduction
Click Process Inputs and Review, then Confirm to complete the payroll
The loan will be marked as Closed once the payroll is processed.
Additional Information
How is the Foreclosure Amount Calculated?
The system automatically calculates the payoff amount based on the loan type:
Flat Interest Loans: The payoff amount includes the remaining principal plus all remaining interest installments
Reducing Interest Loans: The payoff amount includes the remaining principal plus one month's interest on the remaining balance
What if the Employee's Salary is Insufficient?
If the outstanding loan amount exceeds the employee's projected net salary for the next month, the foreclosure will fail with an error message:
"Payoff amount exceeding projected net salary for the next installment period"
In this case, you can either:
Wait for a future month when the employee's salary is sufficient
Pause the loan installment temporarily to allow the employee to build up their salary
Contact support for alternative arrangements
Can I Undo a Loan Foreclosure?
Once a loan has been foreclosed and marked for prepayment, you cannot undo this action. However, if the payroll has not yet been processed, you can delete the loan and recreate it with the original repayment schedule. Exercise caution before foreclosing a loan.
Viewing Foreclosure History
All loan modifications including foreclosures are tracked in the system. You can view the modification history by clicking More > View Info for any loan. This shows:
Modification type (FULL_PREPAYMENT)
Date of modification
Who made the modification
Reason (if provided)
Note: Loan foreclosure is a permanent action that changes the repayment schedule. Ensure you have discussed this with the employee and confirmed they want to prepay the loan before proceeding.