www.loanperformer.com

Table of Contents (Online Help)

 

Write off Several Loans

A write-off is a deduction in the value of the loan Portfolio by the amount of an expense or loss or non performing part of that portfolio. LPF provides for a user to write off a single loans and also to write off several loans. The feature Write off Several Loans allows a user to write off many loans at once.

Writing off loans is fairly easy. You have to have the write off date and proper user access to post the write off the transaction.

How to Write off Several Loans

To Write off Several Loans you go to Loans/Write off Several Loans and a screen like the one below shows up:

Note:
1.  "Write off only loans in arrears beyond the expiry date" is ticked, all loans that are in arrears and are expired will be displayed.

2.  In normal practices, loans are usually written off when they are provided for 100%. However the LPF feature to "Write off loans having provision less than 100%" is meant to write off loans in circumstances when they are not 100% provided for but there is every business reason to suggest that the loans will not be recovered e.g when the borrower dies, files for bankruptcy or some kind of disaster happens to the business or borrower.

3. Note that the Loans Written off account will be netted off against the Outstanding Principal to get the Net Portfolio for the period.

4. Ensure the loan reserve fund is not depleted or else the system will not write off the selected loans.

5. Note that you can view the report on the written off loans that have been repaid at Portfolio/Reports on Repayments/Repayments of Written-off Loans Report.

To write off several Loans click on the "Write off Several Loans" item under the "Loans" menu. In the dialog screen "Write off Several Loans"  you first choose the date of write off in the

 

Click on the OK button to display the loans to be written of and a report ;like one below appears. Ensure that the loan loss reserve is sufficient to meet the amount of write off by providing for write off

 

Contact LPF live support for more information
This service requires an Internet connection.

Comment on the documentation
Crystal Clear Software Ltd appreciates your feedback. To evaluate this topic, select a corresponding score below:
Poor1 2 3 4 5 Resolved
Name: Email: Organisation:
To send your feedback to the documentation department, type your comment below and click the send button.


The Nº 1 Software for Microfinance