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Table of Contents (Online Help)

Loan Entry Part 4 Groups

This window allows the user attach collateral value and items to a group loan applied. It is the forth stage in the processing of a group loan.

Note that processing a group loan goes through four stages (The Loan application window presents four tabs) whereas processing an individual loan goes through three stages (The Loan application window presents three tabs).

How do you attach collateral value and items to a loan?

Go to Loans/Loan Application. To get to the fourth tab (See the image below), you must have entered all the relevant information at Loan Entry Part 1, Loan Entry Part 2 and Loan Entry Part 3 Groups.

• Collateral is based on value (other wise by type): When you check this option, only the fields of Collateral and Value will be active to enable you enter the appropriate details. However when the option is unchecked more fields become active such as Type, Unit value, Unit, and Total Value. Type the loan guarantee item in the field Collateral e.g. "Motor cycle" and the number of items in the field Unit e.g. "2". When you select the guarantee item from the drop down menu Type, its Unit value appears e.g. "2,000,000" and the Total value is automatically calculated e.g "8,000,000".

• Note that for the Collateral types and the unit values to appear in this window they should have been defined under Support Files/Loan Guarantee Items.

• Expected disbursement date: Enter here the expected disbursement date, e.g., "02/02/2016". Loan Performer will update the previously created Loan Contract template with the expected disbursement date. It should be a date after application.
• Collateral Contract: This is the contract made between the MFI and the guarantor of the client asking for the loan. In some cases the client can be the guarantor himself. The contract contains the details of the collateral item given. This should have been defined as Collateral Contracts at System/Configuration/ Loan Product settings/Contracts.
• Print contract when savings: Check this option and the contract will be printed when saving. Usually Loan performer prints the contract for the each member but will prompt give the option to print for the whole group.
• Check Savings?: Click this button to view the current balances on the client's savings accounts (if any) depending on the savings tracking method chosen under System/Configuration/Savings/Savings Accounts Settings. This is a good validation for loans linked to savings under System/Configuration/ Loan Product settings Loan Product General Settings and System/Configuration/ Loan Product settings Guarantee Settings.
• Preview: Click on this button to see the loan repayment schedule of the entire group (See the image below).
• 

• Note:
  
  1. If the repayment amounts have decimals or are difficult to pay in cash, you can round them off. To do this, click on the button "Members Repayment Schedule" to enable you modify the repayment amounts of the group members.
  
  2. In case you have rounded up, the values added to the interest and principal amounts will be deducted from the corresponding amounts of the last installment.
  
  3. In case you have rounded down, the values deducted from the interest and principal amounts will be added to the corresponding amounts of the last installment.

• Members Repayment Schedule: This button enables you to see and modify the repayment schedule of the loan in order to get rid of decimal values and amounts difficult to pay in cash. When you click on this button the following screen appears:
• 
• Click Yes to continue, the following screen appears:
• 
• Membership No: This number appears here automatically depending on the member installment selected in the grid above e.g "0004".
• Principal: The principal to repay with the selected installment appears here e.g. "125,000". You can modify it if you wish and click on the Update button to effect the changes.
• Interest: The interest amount to pay with the selected installment appears here e.g. "6,164.39". You can modify it if you wish and click on the Update button to effect the changes.
• Commission: Enter in this field the commission amount to add to the repayment installments e.g. "100" and then click on the Update button to effect the changes.

• Note:
  
  1. You have to specify if the changes you want to make to the repayment amounts of the group members should affect a "Single installment" or "All installments" or "All members" by selecting the corresponding radio button.
  
  2. For modification of repayment installments, the targeted member number appears so that the change affects only the selected installment or all installments of the member.
  
  3. On the hand, for a modification concerning all members of the group, it is the transaction date that appears instead of the group member number. The modification done affects only the last installment of each member of the group.
  

• R<<: Click this button to round down the interest and principal amounts if they contain decimals values. The small amounts removed are added to the corresponding amounts of the last installment.
• R>>: Click this button to round up the interest and principal amounts if they contain decimals values. The small amounts added will be deducted from the corresponding amounts of the last installment.
• Reset: Click on this button to cancel the modification and revert to the original values.

• Note that you wouldn't be able to modify the repayment schedule if the option "Credit officer may change repayment schedule" is not activated under System/Configuration/Loans.

• View: Click on this button to see the loan repayment schedule of the group members.
• 
• Print: Click on the print button to print the group members repayment schedule.
• Return: Click on the return button to return to the main tab (Loan Entry part 4). If print Contract is activated, the system prompts the user to print the contract of either the entire group or for each member upon clicking the save button as seen in the image below.
• 
• Click the appropriate option of how you want the contract printed.

Related Topics

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