24 docs tagged with "loans"

Only loans in the Processing state can be approved.

When a loan is created in the system, it is associated with a loan product. The terms set on the loan product will be the terms for the new loan. To set up a loan product, see Creating New Loan Products.

A loan product lets you create a template for a type of loan that you regularly offer. Loan products can be fine-tuned to accommodate every type of loan that might be offered. For example, a loan product could be designed to accommodate a specific loan amount, loan term, and interest rate.

Only loans in the Processing state can be deleted.

Only loans in the Approved state can be disbursed.

A client may decide to pay up their loan fully earlier than the initially agreed-upon tenure. This process, sometimes referred to as "early settlement," is supported by Lenda.

A loan can be edited only if it is still in the Processing state. In this state, the user can edit any field. Once the loan has been approved, to edit the loan the user must first undo the approval. Undoing the approval reverts the loan back to the Processing state. If the loan has already been disbursed (Open state), the user must undo the disbursement to revert back to the approved state and then undo the approval to revert back to the Processing state to be able to edit.

When creating loan products, you can configure reschedule installments that are due on non-working days. For more information about setting up non-working days, see Non-working days creation under Manage branches.

This page provides information on how interest is charged in the system.

This page provides information about each type of interest that the system supports.

Loan controls help regulate the type of loan data that can be entered into the system. The following are the various options available.

Loan details section provides information about the loan.

Loan fees can be added on a loan product or on a loan that has already been created.

Each time a loan is created, it is assigned an initial state of "Processing." From there, the loan goes through a series of states until it completes a cycle. Each state defines the loan's position and what can happen to it.

There are two ways to add payments to loans. You can go to the loan and make a payment, or you can choose to make bulk repayments.

Pure Groups

When a loan goes into default, the system changes the loan status from "Open" to "Arrears." The loan details will then display two new fields: "Amount in Arrears" and "Days in Arrears."

When a loan in Open state misses installments, its state is changed to Arrears. In arrears, depending on product configurations, penalties may be added automatically to a loan at specific intervals. You might want to limit penalties added to a particular loan, or on loan creation, you might want to restrict the system from adding penalties to a specific loan in case of default.

This page provides instructions on how to manage loan products are creation.

Refinancing is the process of replacing an existing loan with a new loan. Refinancing is usually done to take advantage of more favorable terms, such as a lower interest rate, reduced monthly payments, or a longer period of time to repay the loan. Refinance allows you to change all the loan terms if necessary including loan product.

Only loans in the Processing state can be rejected.

When a payment is made in the system, it is allocated among principal, interest, penalty, and fees. The repayment order determines which of these is paid first. By default, the repayment order is penalty, fees, interest, and then principal.

Lenda system only supports single payment on solidarity loans. To add a payment:

Only loans in Open or Arrears state can be written off. Writing off a loan takes the remaining loan balances off the portfolio, registering them as a loss.