This page is used to enter loan repayments made by your clients. A loan repayment is usually done on the date when the installment is due. The following procedure describes the repayment process for individual and group loans when group-member level loan tracking is not activated (see: System/Configuration/Loans). But if loan tracking is at group member level, members can get individual loans.
Note: The loan acquired by a member as an individual loan can be paid for through the client's group member saving or the normal loan repayment under the loans module Loans/Repayments and Loans/Repayments/Group Member Repayments.
How to make a Loan Repayment
To make a loan repayment go to Loans/Repayments menu and a loan selection screen will appear:
Loan Number: Click the Choose button to select the loan you want to make payment for. e.g., "DB/000048" or enter the loan number in the field provided.
Click on the Next command button to proceed. A Repay Loan window is displayed as seen below:
Last Repayment: This field is read only and will show you the date when the last repayment was made. If no previous repayments were made then this filed stays blank.
Balance: This filed is read only and displays the outstanding amount of the loan, inclusive of interest and other charges , e.g., "3,300,000"
Transaction No: This is a non-modifiable unique code, generated by Loan Performer for identification purposes of this particular transaction, e.g., "1600000064".
Date: The repayment date should be entered in this box, e.g., "01/04/2016" or click on the Loan History tab and double click on an installment due for a particular date.
Note that the date entered should be the actual payment date since Loan Performer uses it for the various calculations. It can be any date as long as it is not after the current login date.
Close Loan: This option should only be checked if a client wants to repay off the entire loan and Close off the loan at the specified date. When the Next button is clicked the total outstanding amount on the loan will be displayed in the Total Amounts Paid box.
Voucher: Enter the voucher number in this textbox if required, e.g., "000123".
Recalculate interest: This option is available only for loans with interest calculations on declining balance. When this checkbox is ticked Loan Performer recalculates interest basing on the date entered. The interest calculations could be optional depending on the activated configurations under System/Configuration/Loan Product Settings.
No Interest: This option is displayed only if you activate the option Close Loan for flat rate loans only. If it is uncheked, you will pay the outstanding loan with all the outstanding interest and if it is checked you will only pay the outstanding principal without interest at the time of the loan closure. However, any past due interest will be included in the total outstanding amount to be paid at the time of closure.
Click on the Next command button to continue. A Repay Loan window is expanded to include other section as seen below:
Select the mode of payment by marking the appropriate check-box, e.g., "Cash Transaction".
Note. 1.The transaction data tab contains details about the current transaction or repayment. Initially all controls on the upper part are enabled and those on the bottom are disabled and when a repayment date is entered in the date box and the Next button is clicked, the controls on the upper part are disabled while those on the lower part are enabled. Most fields at the lower part will be active if the option "Repayment priorities modifiable " is checked at System/Configuration/Loans . Otherwise it will remain read only apart from the Total amount paid.
2. The repayment module accepts outstanding invoices from creditors/suppliers of the MFI to pay their loans using an outstanding invoice.
3. Ensure that the invoice received from the supplier under Accounting/Purchases and Sales/Invoices Received is linked to that particular client with a loan repayment to make. See the image below.
4. When that client is making a loan payment under the loans module, the feature "Pay with outstanding invoice amount" will appear. You will then have a choice to settle the loan amount with the outstanding invoice amount the institution owes the client/supplier.
Payment Mode
This specifies the mode of transacting which is important for the way in which the transaction will be booked. If you select a cash transaction, your cash account will be debited, a cheque transaction debits the suspense account cheques, a transfer from savings debits the savings account and a direct payment to the bank debits the MFI bank account.
Cash Transaction: When this option is activated, a specific cash account to which the amount should be booked has to be selected from the available drop-down list options.
Cheque Transaction: Activating this option subsequently pops-up a Cheque Particulars window where you can enter the details for the cheque, e.g., "The Paying Bank", "Cheque Number" and "Cheque type".
Savings Transfer: When this option is activated, a corresponding client savings product should be selected from the available options. This implies that the repayment amount should be deducted from the client’s savings account.
Co-Account Holder Transfer: When this option is activated, another co-account holder's account should be selected from the available options in order to make the repayments. The co-account holder must have been entered during the opening of savings account.
Direct to Bank: When this option is selected, the corresponding bank account to which the payment was made should be selected. This implies that the client paid to the bank and presented a banking slip or similar document as proof of payment. The banks available in this option are those banks configured under System/Configuration/Banks.
Amounts Paid Details
The total amount paid by the client is apportioned in the following order.
Total Amount Paid: This is the total amount of money paid by the client to cater for the loan installment due and any other associated charges.
Of which Stationary: The stationary charges entered here will be deducted first before the cheque clearing charges are deducted.
Cheque Clearing Charge: This amount will be deducted next from the total amount after deducting the stationary fees but before the penalties due.
Penalties Due: The amounts displayed here are those penalties, which should have been paid and now they are overdue. These are deducted after the cheque clearing charges but before deducting commissions due.
Commissions Due: The amount displayed here is the accrued commission, which should have been paid and now it is overdue. This commission is deducted after the Penalties due have been charged but before the Interest past due.
Interest Past Due: The amount displayed here is the accrued interest, which should have been paid and now is overdue. This interest is deducted after the commissions due have been charged but before the principal past due.
Principal Past Due: The amount displayed here is the accrued principal, which should have been paid and now is overdue. This principal is deducted after the Interest Past due have been charged but before the Interest due is deducted.
Interest Due: The amount displayed here is the current interest, which should be paid. This interest is deducted after the Principal Past due has been deducted but before the Principal due is deducted.
Principal Due: The amount displayed here is the current Principal of the loan, which is being paid. This principal is deducted after the Interest due has been deducted but before the Pre-paid interest is deducted.
Prepaid Interest: The amount displayed here is the future interest, which should have been paid with future installments. This interest is deducted after the Principal due has been deducted but before the Pre-Paid Principal is deducted.
Prepaid Principal: The amount displayed here is the future principal on the loan, which is being paid. This principal is the last amount to be deducted from the total amount entered in (a) above. Generally, whatever amount remains on a repayment amount is regarded as a pre-paid principal.
Note: The amounts displayed in the above options are automatically calculated by Loan Performer.
Note: If the loan to be repaid is a group loan and loan tracking is at group member level Configuration/Loans then you have to use the Group Members Repayments menu.
Loan Overpayment
Loan Performer allows you to pay a loan over and above the outstanding amount. To do this you should tick the "Allow overpayment" option at System/Configuration/Loans. See below:
If a loan is overpaid, the excess amount is posted to GL account which should have been set at Loan Product Settings\GL Accounts 1-2 . See image below.
