- Loan Application Fees required before or after Loan Approval: Tick this check-box if you charge any fees before or after loan approval (not at disbursement). This will automatically lead to the Loan Application Fees required before Approval (Otherwise after) option to be checked too (the later option could be unchecked). If the check-box for this option is marked then the loan application fees should be paid before the loan approval and in the Loan Performer loans menu you will see the item. This means that fees to be charged can be entered at the "Fees During application” option (i.e. for both individual and Group loans).
Note that when the option above is not selected, there are no fees to be charged at Loan application. They can only be charged at Loan Disbursement. The screen looks as follows:
The fees are entered separately for Individual Loans and Group Loans and at application or disbursement. It can be a flat amount or a percentage (%) of the loan amount.
Note that if you mark a check-box on the right, next to any type of fees, that fee will become compulsory; therefore it will not be modifiable at the data entry point and will be applied automatically.
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Commission set on the "Loan cycle" tab: When this is ticked then commission field gets deactivated and the commission to be charged will be entered in the under the Loan cycle tab in the field of Min commission at application and Min commission at disbursement.
- Loan commission to pay with every installment for individual loans: This feature allows commissions to be paid along side the loan installments either as a percentage of the loan or as a flat amount. In the example above the loan of 1,000,000 will have the installment 10% (12,500) of 125,000 be paid with every installment for individual loans as seen below.
- At the end of the loan schedule, 10% (100,000) of the principle (1,000,000) will have been paid in commission
- Flat amount split equally per installment: When this option is selected, then the commission amount entered in the corresponding field will be paid as commission with the loan installment.
- Stamp duty: Stamp duty in LPF is a tax levied on principal portfolio and interest income arising from portfolio that needs to be collected and handed to the tax body/ authority .
Stamp duty on principal (Expense account): Select the GL account where the stamp duty on principal will be booked. The statutory percentage of stamp duty on principal is defined under System/Configuration/Loan Product Settings/Fees this is an expense account.
Stamp duty on accrued interest (Expense account): Select the GL account where the stamp duty on accrued interest will be booked. The statutory percentage of stamp duty on accrued interest is defined under System/Configuration/Loan Product Settings/Fees it is also an expense account.
Stamp duty (Liability account): Select the stamp duty liability GL account where the stamp duty will be posted. This is the tax liability account used to collect the tax expenses before transferring it to the tax authority.
After configuring the stamp duty you can now calculate the stamp duty payable under menu Accounts/Calculate stamp duty.
Note that the booking to the GL will only happen when you print the report generated at calculation of Stamp Duty:
Click on the Save button to save the changes and on the Close button to exit the menu.