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Table of Contents (Online Help)

Definitions

If you work with concepts like 'Past Due', 'Due', 'Pre-Payments', 'Arrears', 'Portfolio at Risk' etc. you have to define them so that everybody understands the same thing and we can communicate correctly with each other.

• An active loan: This is a loan that is not fully paid off. The active portfolio is the portfolio of outstanding loans.
• A loan is in Arrears from the date after the installment was due to be paid.
• Bi-Weekly installments: This means installments after every 14 days.
• A Blacklisted client: This is a client who has a bad repayment behavior and is not eligible for a follow-up loan. The user defines who shall be blacklisted. You can blacklist a single individual, a whole group or just a group member. The blacklisting can be temporary. It is also possible to remove someone from the list.
• A loan is Expired or Matured on the day that the loan should have been paid off completely.
• The Grace Period: This is the period between the disbursement of the loan and the start of the first installment.
• An installment becomes Past-Due the day after it was due.
• An installment is Pre-paid if a client pays more than the amount due or before the installment is due.
• Portfolio at Risk: This is the percentage of the principal amount outstanding of loans in arrears with regard to the total amount of principal outstanding of all loans. Sometimes the Portfolio at Risk can also be expressed as the amount of principal outstanding of loans in arrears.
• On-time Repayment Rate: This is the amount paid in this period as due, divided by the amount due for the same period. The on-time repayment rate is a rate for a specific period in time (the user defines the period).
• Overall Repayment Rate: This is the total amount paid as due and past due on a loan divided by the total due until the reporting date. The overall repayment rate is a rate for the period of the loan since disbursement up till the reporting date. Of course this period is different for every loan.
• Qualitative Repayment Rate: This is calculated according to the following formula: Payments - Prepayments (P+I) divided by Dues (P+I) since disbursement
• Quantitative Repayment Rate: Thisis calculated according to the following formula: Payments (P+I) divided by Dues (P+I) since disbursement.
• A loan is defined to be “at Risk” when the total principal amount due till the start of the current period has not been paid back. If that is the case the loan is part of the “Portfolio at Risk”.
• A System Account: This is an account that is classified by Loan Performer as belonging to the system. All accounts that you see under the configuration are system accounts. If account A is defined as the Cash account in the configuration and you change that to account C, account A will no longer be a system account and you can delete it (provided you didn't book anything on this account). Now account C becomes the system account.
• A Written Off Loan is not part of the active portfolio anymore. It is a non-performing loan that has been booked off from the provision. Although it is no longer part of the active loan portfolio, "special" credit officers should still chase this client and try to recover whatever is possible (even if the costs are higher than what they may recover as this sets an example for other potential defaulters). If a repayment is received for a written off loan, the amount received will be booked as a profit.
• Application folder: This is the folder that contains the Loan Performer program files. By default it is the folder "C:\LPFXXX" if Loan Performer is installed on drive C:.
• Database folder: This is the folder that contains the Loan Performer database files. By default it is the folder labelled "data" that is located in the application folder as "C:\LPFXXX\data"
• Dormant accounts: A savings account showing no activity (other than posting interest) for some specified period.
• Mapping: Mapping here refers to the process of making the path to the data point to a common data directory on the server. Once this is done and saved (as indicated above), the mapping is done automatically at login, as long as the server is started before the individual logins. However, if the login is done when the server is not available, users might disable the automatic mapping by changing the server data directory to a local database for example. This is not advisable, as users may forget to map again the data directory to the server, hence sending data to the alternative copy. If the Administrator does not want this to happen, he should delete local database copies on all machines other than the server.

Related Topics

License, Disclaimer, Menu, System Configuration, Network Installation

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