Loan Management System in Odoo helps businesses manage customer and supplier loans from application to closing. It allows users to create loan categories, manage borrower details, upload verification documents, approve requests, disburse funds, and track repayments. The system connects with Odoo Accounting to record loan transactions and journal entries properly. It also sends installment reminders for upcoming and overdue payments. Borrowers can view loan details, agreements, notices, and outstanding amounts from the portal. With reports and dashboard charts, managers can easily monitor approved loans, disbursed amounts, repayments, interest, overdue installments, and overall loan performance.