Loan Settings
The loan settings section is where you configure loan products, general settings, collateral categories, and loan provisions.
Last updated
The loan settings section is where you configure loan products, general settings, collateral categories, and loan provisions.
Last updated
Select 'Loan Settings', click 'Loan Products' then 'Add New Loan Product', fill in the appropriate information, and save.
Click 'System Settings', then 'Loan Settings', and select 'General Settings' to create a new loan or top up the principle.
When one makes a loan top-up, they can either create a new loan or choose to increase the current principal amount.
Under 'Loan Settings', select 'General Settings' then select 'Mandatory Savings' in order to add the percentage of money that a client adds to their loan payment that will go into their savings.
In order to set up an automatic SMS reminder for overdue payments, follow these steps: Go to 'Loan Settings', select 'General Settings', and choose 'Loan in Arrear'. Then, specify the number of days after which the client should be reminded. For instance, if you set it to 2 days, the client will receive an automatic SMS reminder every 2 days in case they are late on their payment.
Go to 'General Settings' and select 'Loan Write-offs'. Set the number of days before requesting a loan write-off.
You have the ability to determine how the system will manage clients who request multiple loans. There are two options available: 'One loan per borrower per loan product' ', which means that a client can have multiple loans, but they must be for different loan products. The second option is 'One loan per borrower regardless of loan product', which means that a client is limited to having only one loan.
This is to set your own loan assumptions so that you can align your loan collection process with your operational preferences. For example, if you select '30/360 Method' in days and '4/48 Method' in weeks, it means that your organization follows the calendar of 30 days every month per year regardless of other months like February which has 28/29 days. If you select 'Actual/365 Fixed(No leap year)', it means your organization counts every month as it is.
You have the capability to respond to early loan payoffs, so that the system's operations align with our institutions specific loan policies.
'No Early Loan Payoff': This option ensures that clients pay the full agreed-upon interest, regardless of how soon the loan is paid off.
'Early Loan Payoff with Penalty': This option allows clients to pay interest only for the period during which they had the loan, in addition to a penalty fee for early payoff.
'Early Loan Payoff with no Penalty': This option allows clients to pay interest only for the period during which they had the loan, with no additional penalty for early payoff.
You can set aside a portion of funds as loan provisions to cover potential loan losses. The system automatically calculates and reserves these funds, reducing the risk of financial shortfalls. By managing your loan provisions effectively, you ensure your organization's financial stability and security.
