Creating/Disbursing a Loan

Creating a loan involves specifying the loan amount, repayment terms, applicable fees and penalties, and other necessary details to ensure complete documentation and proper tracking.

Prerequisites

• A borrower profile must be created beforehand. If you haven't created a borrower yet, refer to the Creating a Borrower guide.

• Ensure that all relevant borrower files are attached and verified, as per your internal policies.

Detailed Step-by-Step Guide

1. Navigate to the Loans Section

   • From your main navigation menu, select "Loan Management -> Loans".

   • On the Loans page, click the "Ad Loan" button, typically found at the top right.

2. Select a loan status

   the loan status determines the current stage of the loan within your workflow and influences how it is managed and reported within the system.

3. Select Borrower

   • In the "Borrower" dropdown or search box, select the relevant borrower.

   • This association links the loan to the borrower’s profile and history.

4. Enter Loan Details

   • Loan Amount: Input the principal amount disbursed to the borrower.

   • Interest Rate: Enter the annual or periodic interest rate applicable for this loan.

   • Loan Term: Specify the duration of the loan, such as 6 months, 12 months, etc.

   • Repayment Schedule: Choose the frequency of payments—monthly, bi-weekly, weekly, or customized.

   • Loan Product: If you have any configured loan products, select from existing loan products, or customize terms such as repayment method, grace period, etc.

5. Configure Fees

   • Standard Fees: Add applicable fees such as processing fee, application fee, administration fee, or others.

   • Fee Type: Mention whether fees are fixed amount or percentage of the loan.

   • Fee Amount: Specify the exact fee value.

   • Fee Schedule: Decide if fees are deducted upfront or periodically.

6. Configure Penalties

   • Late Payment Penalty: Set the penalty amount or percentage for late payments.

   • Grace Period: Specify any grace period before penalties are enforced.

7. Fill Additional Fields (Extras)

   • Collateral Details: Describe collateral if applicable.

8. Review & Confirm

   • Double-check all loan parameters, fees, penalties, and borrower association.

   • Ensure that all required fields are correctly populated.

9. Create Loan

   • Click "Save" to finalize the loan application.

   • The system will then process and set the loan status to active or pending, based on your configured loan status.

Post-Creation Actions

• The loan can now be monitored through its repayment schedule.

• You can generate reports, send automated reminders, or update the loan as payments are made.