www.loanperformer.com

Table of Contents (Online Help)

Loan Configuration

This module helps you to set the different parameters for loans that will give you various options while dealing with loan transactions.

How to configure Loan Transactions

To configure loans you go to System->Configurations->Loans Configurations and a screen like the one below shows up:

• Due dates have to be reported at cheque clearing: Normally due dates are calculated at Loan Application and updated at Disbursement. When loan disbursements are made by cheque, you might want to start calculation of due dates from the date of cheque clearing. In that case you have to mark this option. The due dates will be updated not at the entry of disbursement, but when you clear the cheque at System->Cheque Clearing.

At this point you will get a pop up screen containing two options about the way due dates have to be updated from which to select:
-  Update due dates with.... days which is the difference between application and cheque clearing date.
-  Recalculate due dates based on the disbursement date.
If you press the button Ok, Loan Performer will recalculate or update all due dates according to the option selected. Hence the first option should be selected in case you want to start calculation of due dates from the date of cheque clearing.

• Repayment priorities modifiable: At the entry of a Loan Repayment, Loan Performer breaks down the repayment amount in the following order: 1) Penalties due; 2) Commissions due; 3) Interest past due; 4) Principal past due; 5) Interest due; 6) Principal due; 7) Interest pre-paid; 8) Principal pre-paid. If you want to be able to make changes in the repayment allocations, please mark this option box.
  
  
• Group members have different interest rates: Activating this option will enable you to specify different interest rates for each group member at the entry of group Loan Application that is if you track group loans at group member level.
  
  
• Client may apply for a 2nd loan when first loan is still outstanding: This option is checked by default. Please remove the check mark if you don't want to allow your clients to apply for follow up loans when they still have outstanding amounts.
• Client may receive a 2nd loan when first loan is still outstanding: This option is checked by default. It allows disbursements of follow up loans to the clients with outstanding amounts. Please remove the check mark if you don't want your clients to receive follow up loans before they fully repaid previous ones.
• Follow-up loan only allowed if no arrears: If this option is activated, Loan Performer will not allow entry of loan applications for clients with loan amounts in arrears.
• Disallow disbursement if partner has an outstanding loan: If this option is activated, Loan Performer will not allow entry of loan applications for clients whose co-account holders (partners) have outstanding loans.
• Credit officer may change repayment schedule: This option is checked by default. Please remove the check mark if you don't want credit officers to modify or change the due dates and amounts at the entry of loan applications.
• Client can pay installments in advance: This option is checked by default. If you remove the mark, Loan Performer will not allow entry of loan repayments in advance.
• Default disbursement: Select from the drop down list the most frequently used mode of loan disbursement, e.g., "Cash". This mode will be the first available option at the entry of loan disbursement, but you will be able to select another, if necessary.
  Note that disbursements can be made by cash, cheque, transfer to clients' savings account or transfer to clients' bank account.
• Default loan repayment: Select from the drop down list the most frequently used mode of loan repayment, e.g., "Cash". This mode will be the first available option at the entry of loan repayments, but you will be able to select another, if necessary.
  

• Note that repayments can be made by cash, cheque, transfer from clients' savings account or transfer from the clients' bank account.

• Group loan tracking at group member level: You must activate this option if you have group loans and want to have them tracked at group member level. When this option is marked, two other options become available:
  1. Groups have sub-groups?: Mark this option if you have sub-groups within the groups. At entry of group client you will have to name the sub-groups and indicate to which sub-group each member of the group belongs.
  2. Member gets individual loans?: This option should be marked if every member of the group can get an individual loan. As opposed to individual loans these loans do not require guarantor or collateral. This methodology is often referred to as Grameen methodology of lending. 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.

  3. Note that once you start at group level, you cannot change the tracking options to group member level. If you start at group member level, you can always switch to group level later on 

  Provision to be monitored loan by loan basis. If this is ticked, Loan Performer will keep track of the amounts provided for on a loan, on a loan by loan basis.

• Loan number modifiable at loan application: If activated – though it is not recommended – then at entry of loan applications you will be able to change the automatically assigned loan number to any number of your own. This option can be used when you want to enter loans using previously used loan numbers. However you should know that the numbers you enter can never be changed afterwards. Though you can later revert to Loan Performer automatically generated numbers.
• Loan cycle modifiable at disbursement: If activated, the user can change the loan cycle at entry of loan disbursement.
• Print receipt at disbursement: Please activate this option if you want Loan Performer to generate and print receipts at loan disbursement. Printing of receipts will be made a default option, but you will be able to disable it when entering disbursement. Printing of receipts has to be activated in System->Configuration/Receipts menu.
• Print loan contract at disbursement: Activate this option if you want compulsory printing of loan contracts at loan disbursement. Printing of contracts will be made a compulsory option on the disbursements screen. Printing of contracts has to be activated at System->Configuration->Loan Product Settings->Contracts.
• Max. number of days to update due dates after disbursement: Here you can indicate the maximum number of days for which the postponements of loans due dates after disbursement are allowed at Loans->Postpone Due Dates.
• Exclude prepayments in the calculation of repayment rate: When this option is selected, it enables Loan Performer to exclude prepayments in calculating the repayment rate for loans. (This gives a more accurate picture of the rate of repayment). N.B: This will depends on the institution’s policy whether to include or exclude the prepayments. You can look at the payments made during a period and active portfolio per credit officer reports when this option is both checked and unchecked to find out the effect on the reports.
• Consider loans falling due on reporting date to be in arrears: Select this option so as to have all loans that are due for payment on the reporting date to be shown as being in arrears.
• Guarantor can guarantee several loans: This option is active by default and allows one Guarantor to guarantee several loans. If your organisation does not allow this, deactivate the option.
• Allow Loans to be overpaid: When this option is selected, Loan Performer will allow overpayment of total principal and interest on loans outstanding. The General Ledger account to which overpayments have to be posted must be defined in the Chart of accounts and linked at System->Configuration->Loan Product Settings->GL Accounts 1/2.
• Total of principal, interest, penalty and commission used for the calculation of arrears: By default the calculation of arrears includes all these elements. If you untick this option then the calculation of arrears will only include the principal element of the loan.
• Notify User at start up if penalties are not calculated on time: If you have set the system to automatically calculate penalty at System->Configuration->Loan Product Settings->Penalties then ticking this option l give you a pop up reminder message at log on that penalties are due for calculation.

Click on the Save button to save the loans settings.

You can click on the Print button to view\print the parameters of the loans configuration 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.