Please follow the below steps

Step1: Create a leave definition by enabling Annual Leave as shown below

Step2: Just like a regular leave employee can apply for annual leave

Step3:  Employee has to apply for Annual Leave Advance similar to applying for a loan by choosing Loan Type as Annual Leave Advance as shown below.

In the above screen once you choose Loan Type as Annual Leave Advance you can see list of Leave Types created with the option Annual Leave as shown in Step 1.

In the next drop-down (Select Leave) you need to select the applied leave as explain in Step 2

Step 4: Once employee applies for a loan it will follow the defined approval process for Loan Application. Once it is approved then request comes to Finance team for loan sanctioning. Please see sanctioning loan for Annual Leave Advance. Before sanctioning the loan please do the Payroll Simulation to check for on going EMI's for employee

Step 5: Once the loan is sanctioned employee will be notified and employee can request for loan disbursement.

Step 6: Once employee requests for loan disbursement Finance head disburse the loan and EMI's will be initiated similar to regular Loans.