www.loanperformer.com

Table of Contents (Online Help)

Group Loan Settings

The Group Loan Settings menu enables you to set parameters for groups loans that will be applied during the various group loan transactions.

How to make Groups Loan Settings:

To make group loan settings you go to System-> Configuration->Loan Product Settings -> Group Loan and a screen will be displayed as follows:

Loan Product: From the drop down select the loan product that you are making settings for, e.g., "Loans General".

Note that the settings are made uniquely for each loan product. This means that you have to make settings for each loan product separately.

• Loan Amount:Here, you enter the amount that will be shown as a default loan amount at the Loan Application Entry when the corresponding loan product is selected, e.g., "500,000". If the check-box next to this option is marked (on the right), the amount will become compulsory, i.e., will be automatically applied at the time of entering loan applications in the selected loan product and will not be changeable.
• Annual Interest Rate:Here you enter the annual interest rate and this will be shown as default interest rate at the loan application entry when the corresponding loan product is selected. If the check-box next to this option is marked (on the right), the percentage will become compulsory and will not be changeable.
• Grace period (in days):Here enter the number of days for the grace period. These are the days that are given to clients before they actually start repayments and will be shown as default number of days at the loan application entry when the corresponding loan product is selected.
• Installments:Enter the number of installments that will be shown as the default at the loan application entry when the corresponding loan product is selected, e.g., "6".
• Installment Type:Loan Performer gives you several installment types that include; Daily, Weekly, Bi-weekly, Half-monthly, Four-weekly, Monthly, Two-monthly, Quarterly, Four-monthly, Semi-annualand Annual. From the drop down select the installment type that you want to appear as the default installment type at the loan application entry when the corresponding loan product is selected.
• Int. Calculation:From the drop-down list choose the interest calculation method that will be shown as the default at the loan application entry when the corresponding loan product is selected. Loan Performer supports the following interest calculation methods: Flat Rate, Declining Balance Discounted, Declining Balance Amortization.
• Loan Commission (% of Loan) (if split into installments):If clients are charged a commission which is calculated as a percentage of a loan amount and is divided into equal amounts to be paid with every installment, enter here the applicable percentage which will be shown as a default loan commission at the loan application entry.
• Minimum/Maximum Loan Amount per Member:Define here a range within which the loan amount of a corresponding loan product will fall. At the loan application entry and at the Importation of loan applications the data entry person will not be able to enter a loan amount that is below or beyond the defined range. For group loans (both, with tracking at group member level and at group level) these settings are validated at group member level (i.e. the amounts apply to a member loan, not to the whole group loan).

The minimum/maximum amount set above gives the full range for the product and takes precedence over any other limits set else where in Loan Performer. Therefore what is defined at the Loan Cycles page and at Loan Entry should fall within this range.

• Loan Guarantee savings checked member level: When this option is ticked Loan Performer will verify whether each members has enough guarantee savings rather than verifying the guarantee savings for the group as a whole.
• Minimum period of membership before disbursement for groups/group members: Enter here a minimum number of days the Group/Group Member has to be registered with the institution in order to get a loan. At the time of entering loan disbursement Loan Performer will check the client's registration date and will not allow disbursements to groups/group members that have not been registered for required number of days.
• Maximum Grace Period Duration (in days):Enter the maximum allowed number of days to be given as grace period on loans, e.g., "999:. These are the days that are given to clients before they actually start on loan repayments.
• Up-front Interest Payment:Mark this check-box if as a rule you allow upfront interest payments. With this option Loan Performer maintains the number of installments and installment amounts. When a client makes a repayment, Loan Performer ensures that the interest component is completely repaid before the principal component is taken care of.

Note that this option works only with flat rate loans.

• Calculate interest for grace period:Select this option if you want Loan Performer to calculate interest for the grace period as well and distribute it equally among all due installments. When this option is selected the Interest on grace period compounded; Interest to be paid also in Grace period and the Separate installment for interest in grace period fields become active.
  • Interest on grace period compounded:Mark this check-box, if the interest for the grace period is to be compounded. This means that the interest for the grace period is calculated and the resulting amount is added to the amount of principal. Then the interest on loan is calculated on that compounded amount.
  • Interest to be paid also in Grace period:This option only works in combination with the "Calculate interest in grace period" and selecting it means that the whole interest amount for the grace period is to be paid with thefirst due installment.
  • Separate installment for interest in grace period:Activating this option means that Loan Performer will create an additional installment at the end of the grace period for repayment of the interest for that period. Grace period will be split according to installment days.
    
    In cases where the length of the grace period exceeds the installment period (e.g., grace period of 60 days and a monthly loan) we will have several separate installments for interest payments during the grace period.
• Interest deducted at disbursement:Mark this check-box if you want to deduct the whole interest amount at disbursement.

Please note that this option works only with flat rate loans.

• Interest Calculation in days:Mark this check-box if calculation of interest is done according to the number of days the loan is held. This is especially important for the loans on declining balance.
• Lump sum Up-Front Interest Payment:This option only works in combination with the "Up-front Interest Payment". If the option is selected the client will have to repay the whole interest amount with the first installment and then continue with the capital repayments.

• Loan Amount per Group Member: Here, you enter the default amount number that each group member should get and it will be shown as a default loan amount at the Loan Application Entry when the corresponding loan product is selected.
• Cycle No. Group Member: Here, you enter the starting loan cycle for each group member and it will be shown as a default starting loan cycle for each member Loan Application Entry.
• Default Business Sector: Select the business sector from the drop down list that will appear as the default during loan entry. The business sector should be defined at Support files->Business Sector.
• Minimum/Maximum Loan Period (Months):The range within which the loan period (in months) that this product will lie can be set here. At the loan application entry, the data entry person will not be able to enter a loan with a period longer or less than the one set here.
• Increase Loan Cycle: He

Click on the Save button to save the group loan settings.

You can click on the Print button to view\print the parameters of the group loan settings and keep them for future reference or click on the Close button to exit the menu.

Related Topics

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