These are the types of loan products being offered to customers.
Use this sub-module to setup / create new loan products or edit existing loan products.
Under this setup sub module, you can also attach loan Indefinite Charges that are applicable to a loan product, as well as loan products to be offset and the Appraisal Products to be considered.
To access this window, click:Accounts Management- > Setup - > Financial Products - > Loans.
The following window will open up:
Select a loan product and notice the enlisted tabs below:
Click on the ADD NEW Button to open the following screen:
Primary Details Tab:
On this Create screen, fill in the following fields.
Name - Enter the name of the Loan Product
Term (Months) - Enter the term in months (Loan period)
Annual Percentage Rate - Set the annual interest percentage rate by clicking on the arrows pointing up or down
Minimum Principal Amount - Enter the Minimum amount for that Loan Product to be applied for.
Maximum Principal Amount - Enter the Maximum amount for that Loan Product to be applied
Minimum Membership Period (months) - Enter the minimum period that a customer should have been a member of the Sacco before applying for the loan product.
Grace Period (Days)-Set the appropriate Grace Period (number of days/months the loan should wait before the first recovery) by clicking on the arrow pointing up or down to set the desired grace period for that Loan Product.
Minimum Guarantors - Enter the minimum number of guarantors accepted for that Loan Product
Maximum Guarantees - Enter the maximum number of guarantees an individual can make for a Loan Product
Interest Charge Mode - Click on the arrow pointing downwards and select the appropriate Interest charge Mode, this can either be periodic or upfront.
Minimum Chargeable Interest Amount - This is the minimum amount of interest that a member should repay (mostly applies for small amount of loans issued)
Interest recovery mode-Select the appropriate interest recovery mode whether upfront or periodic. Upfront means interest will be recovered there and then at the point of issuing a loan. Periodic means that the interest will be spread through out the loan period.
Interest Calculation Mode - Click on the arrow pointing downwards and select the appropriate Interest calculation Mode;
Section- select the section (Cost center) that the loan product belongs to. (FOSA/BOSA).
Category - Select the appropriate category, short term or long term, according to the product being offered.
Guarantor Security Mode - Select the correct guarantor security mode, either income or investment.
Aggregate Check-off Recovery Mode - Select the appropriate aggregate check-off recovery mode, either Outstanding balance or Per standing order.
Payment Due Date- Select the suitable payment due date, either at the beginning of the period or at the end of the period.
Rounding Type - Select the rounding type from the drop down list of options
Rounding Type :
Payment Frequency per year- Select the appropriate Payment Frequency Per Year(how often is the loan paid in a year) by clicking on the arrow pointing downwards.
Maximum self-guarantee eligible - Type in the maximum self-guarantee eligible percentage.
Take Home Type - Select the appropriate, whether fixed amount or percentage.
Take Home Value - Select/ input the appropriate value in accordance with the previously selected take home type, amount for fixed amount and percentage for percentage.
Payout Recovery Mode - Select whether Per Standing order or outstanding percentage.
Standing Order Trigger- Select the appropriate standing order trigger either checkoff, micro loan, payout,schedule or sweep.
Recovery Priority- Set the appropriate Recovery Priority by clicking on the arrow pointing up or down to set the desired recovery priority for that loan Product.
Principal G/L Account - Click on the look up icon to select the G/L Account for the loan product.
Consecutive Income- Set the appropriate Appraisal Factor(The number of times to multiply by the shares/produce) by clicking on the arrow pointing up or down to set the desired appraisal factor multiplier for that Loan Product as per to the Loan policy.
Interest Receivable G/L Account - Click on the look up icon to select G/L account for interest receivable(Interest Accrued).
Investment Multiplier - Click on the arrows to set the appropriate multiplier or alternatively key in the multiplier figure.
Interest Received G/L Account - Click on the look up icon to select G/L Account for the interest received(interest paid).
Secondary Details Tab:
i) Charges Button:
The indefinite charges button displays charges that can be enforced upon the loan product being offered.
Select/ check the appropriate.
ii) Offsetable Loan Products Button:
The button displays attached loan products that can be associated with the loan product being offered.
Check the appropriate to be attached to the loan product being created.
iii) Eligible Income Deductions Button:
The button displays products from which income deductions are made.
Check the appropriate product from which the eligible income deductions are effected; either a loan, investment or savings product.
Loan Products Fig 6
iv) Appraisal Products(deposits) Button:
The button displays investment products upon which the loan appraisal will be carried out.
Check the appropriate product from which the appraisal will be referenced.
Auxiliary Guarantor Factors Button:
The button displays amount and the minimum number of guarantors upon which the loan appraisal will be carried out.
fill in the tiers appropriate for the product from which the appraisal will be referenced
Loan Products Fig 7
Auxiliary Disbursement Factors Button:
The button displays conditions for the amount to be disbursed of that particular loan product
fill in the disbursed amount and grace period for appropriate for the product.
check
to
iv) Auxiliary Appraisal Factors Button:
The button is used to define factors that will be used during the appraisal process, which will take preference over the investment multiplier earlier defined in under the primary details pane.
NOTE : The parameters defined in this window will only come into consideration if the Enforce investment products exemptions ? flag is checked under companies, and the customer in question is classified accordingly, and his/ her investment product balance are within the range defined herein.
Loan Products Fig 8
On the above screen, Tier Details Pane:
Deposits* Range(Lower Limit) - Type in the lower limit of the appraisal factor.
Loanee Multiplier - Select the multiplier factor using the scroll keys.
Guarantor Multiplier - Type in the appropriate guarantor multiplier factor.
Click on the add button to add the factor to the Tiers Pane just below:
Loan Products Fig 9
NOTE : The above process is typically definition of appraisal ranges for the loan product being created. Click on the add button to add each new factor to the tiers.
Ensure the tier is defined to the maximum amount allowed for any investment product attached as an appraisal product to this loan product.
The tier process is sequential. Therefore any violation of sequence different from the earlier defined by the user will result in the following error:
To remove an erroneous entry, select the entry then click on the remove button to effect the removal.
v) Auxiliary Lending Conditions Button:
Under this button, we define the auxiliary conditions that could be considered during the processing of the loan product being created.
Loan Products Fig 10
On the above screen:
Target Product - Click on the lookup icon to open the Loan Product Lookup dialog box:
Loan Products Fig 11
Select the loan product to be considered in the conditional lending citation.
Condition - Select the appropriate condition from the drop down menu:
Conditions Explained:
Maximum eligible % - Define the eligible loan amount the customer can have in percentage, depending on the selected condition.
Click on the add button to add the auxiliary lending condition to the Auxiliary Lending Condition Pane just below:
Loan Products Fig 12
To get rid of an erroneous entry, select the entry then click on the remove button to effect the removal.
NOTE : As many auxiliary lending conditions as desired can be defined for the loan product as long as its within the system's scope.
Click on the add button for every new condition that is defined.
vi) Loan Cycles Button:
Loan Products Fig 13
On the above screen:
Range(Lower Limit) - Define the lower limit for the loan cycle into this field.
Click on the add button to append the cycle into the Loan Cycles pane just below:
Loan Products Fig 14
NOTE : The cycle definition is also sequential, and its violation leads to the following error:
To remove any wrong entries, select the entry then click on the remove button to effect the change.
vii) Deductibles Button:
Define the deductibles to be effected on the loan amount.
Loan Products Fig 15
On the above screen:
Name - Type in the name of the deductible into this field.
Type - Select the appropriate product code from the drop down menu: investment, loan or savings.
NOTE : For Investment Products:
Investment Product - Click on the lookup icon and select the appropriate product to be attached to the deductible from the available list:
Loans Product fig 12
For Savings Products:
Savings Product - Click on the lookup icon and select the appropriate product to be attached to the deductible from the available list:
Loans Product fig 13
For Gl Account, select the specific gl account which which the product will be attached to the deductible.
lookup the gl account to be selected
Charge Type - Select the charge type to be enforced; either percentage or fixed amount
Charge - input the corresponding accordingly in the charge field.
Check accordingly whether to compute charge on top up :
Click on the add button to save add the deductible to the deductibles pane just below:
Loans Product fig 14
Repeat the above steps to create more deductibles then add them to the Deductibles Pane.
Select an erroneous entry then click on the remove button to effect the removal.
Flags Tab:
Select appropriately the actions/ conditions/ rules to be attached to this Loan Product:
Loans Product Fig 15
Flags Explained:
Enforce Security Rule ? - Check this option to enforce all security rules for the loan product as set in the preceding tabs eg no. of Guarantors,Min and Max amount etc
Reject if owing? - Check this option to reject the loan application if there is a similar existent loan.
Allow self guarantee ? - Check this option to allow self guarantee for the particular loan product.
Charge clearance fee ? - Check if the loan product is charged a fee when loan is attached..
Micro credit ? - Check if the product is a micro credit.
Track arrears ? - Check this if you want to track and deduct previous arrears on the same loan product
Enforce System appraisal recommendation ? - Check this option if you want the system to only allow appraisals on the amount it recommends.
Disburse m-banking loan less deductions? - Check to enforce disbursement of micro loans with deductions already made.
Bypass verification? - Check to bypass verification(verification done automatically) of the product when an application is made.
Charge arrears fee ? - Check this if you want to charge arrears fee in case the customer has arrears on the same loan product.
Exclude outstanding loans on maximum entitlement? - Check to exclude recovery of any outstanding loans (for a particular loan product) from a member's maximum entitlement in case a member is exiting/ late.
Consider deposits balance for income-based loan appraisal? - Check to enforce the consideration of a member's deposits balance during the appraisal of an income based loan.
Throttle scheduled arrears recovery ? - Check this to block the automatic recovery of arrears through the scheduled process or if your arrears are recovered on demand.
Create Standing Order on loan Verification ? - Check this to create the loan's standing order upon it 's verification during the loaning process.
Conceal M banking Listing ? - check this to omit the product from product listing for certain operations e.g balance inquiry when user dials m banking ussd code.
Net off deductible investment balance ? - In case where the loaned customer contributes to an investment product which has a maximum balance, checking this ensures the system only deducts such that the amount does not exceed the product maximum balance.
Compute deductible charge on top-up ? - If a loan being issued is a top-up, checking this ensures the deductible charge is computed on the top-up amount and not on the disbursed loan amount.
Is locked ? - Check this box if this product is to be locked(stopped).
Enforce consecutive income validation? - Tick this to ensure income conditions have been met for the loan to be issued.
Permit m-banking offsetting? - Check to permit mobile loans offsetting
Validate minimums on loan registration ?-Check this to validate minimum requirements for loan registration
Charge for interest offsetting ?- check this to compute one-off interest using the offsetting interest rate for the attached loans
Disregard grace period for initial recovery date?-check this to disregard grace period for initial recovery date
Enable automated interest capitalization? -check to enable automated interest capitalization
Throttle m-banking loan disbursement?-Tick this to restrict loan disbursement through mobile for loans that may exceed mobile limit.
Evaluate standing order recovery history for arrearages recovery? -
Permit M-Banking scoring? - Tick this to allow m-banking scoring
Re-base payment due date? - Tick the flag to re-base payment due date
Top up loan appraisal deposits? -Check the flag for top up loan appraisal products
Loanee must borrow scored M-banking loan limit? -Tick this to restrict loanee from borrowing more than scored loan limit.
Capitalize interest per loan case parameters? -Tick the flag to capitalize interest per loan case parameters
Disregard deposits balance for investment based loans appraisal? -check the flag to disregard deposits balance for investment based loans appraisal
Throttle loan restructuring? - Check the flag throttle loan restructuring
Apply principal loan clearance fee? - Check this to apply principal loan clearance fee
Allow discretionary top up? -Tick this flag to allow top up of loans without off-setting the previous balance.
Permit partial offsetting? - check this to permit partial offsetting of the loan product
Charge deductibles fees? -Tick this to charge deductibles fees.
Is defaulters product? - Check the flag to make it defaulters product
Disregard employer classification date? -Check this flag to disregard employer classification date
Require Customer Specimen Images? Check this to enforce specimen capture before loan processing
Recover arrearages per product section ? Check this to compute clearance charges tied to loan product instead of individual clearance charges
Click on the create button to commit the loan product into the system.
On successful completion you will get a pop up message confirming that the operation was successful.
Editing A Loan Product:
1. First Identify the the Loan product to be edited:
Loans Product Fig 16
Then click on the edit icon
against it to open the following window:
Loans Product Fig 17
On this Edit screen:
Make appropriate changes to the fields that are to be affected.
Proceed to the secondary tab and flags tab respectively and make the necessary amendments to the applicable fields accordingly.
Click update to commit the changes into the system.
On successful completion you will get a pop up message confirming that the operation was successful.
Support ›› Manual ›› Accounts Management ›› Setup ›› Financial Products ›› Loans ››
Loans Products With Auxiliary Investment Appraisal Factors.
These are the types of loan products being offered to customers with the appraisal factors subject to customer classification.
Use this sub-module to create a new loan product or edit an existing loan product to include the auxiliary investment appraisal factors investment ranges and corresponding multipliers.
Creating A Loan Product:
Please refer to Loan Products on comprehensive coverage on how to set up a loan product.
To access this window, click:
Accounts Management - > Setup - > Financial Products - > Loans > Loan Products With Auxiliary Investment Appraisal Factors.
The following window will open up:
Loan Products Auxiliary Investment Appraisal Factors Fig 1
Select a loan product and notice the enlisted tabs below:
The below tabs display much detailed information about the selected loan product.
Loan Products Auxiliary Investment Appraisal Factors Fig 2
Click on each to view the specific details.
We'll focus on the secondary details tab, with particular reference to the auxiliary Investment Appraisal Factors :
Secondary Details Tab:
Auxiliary investment Appraisal Factors Button:
This pane is used to define factors that will be used during a loan appraisal process, which will take preference over the investment multiplier earlier defined in under the primary details pane.
NOTE :
The parameters defined in this window will only come into consideration if the Enforce investment products exemptions ? flag is checked under companies, and the customer in question is classified accordingly, and his/ her investment product balance are within the ranges defined herein.
Loan Products Auxiliary Investment Appraisal Factors Fig 3
On the above screen, Tier Details Pane:
Deposits Range(Lower Limit) - Type in the lower limit of the appraisal factor.
Loanee Multiplier - Select the multiplier factor using the scroll keys.
Loanee Divisor- Select the divisor factor using the scroll keys
Guarantor Multiplier - Type in the appropriate guarantor multiplier factor.
Click on the add button to add the factor to the Tiers Pane just below:
Loan Products Auxiliary Investment Appraisal Factors Fig 4
NOTE : The above process is typically definition of appraisal ranges for the loan product being created.
Click on the add button to add each new factor to the tiers.
Ensure the tier is defined to the maximum amount allowed for any investment product attached as an appraisal product to this loan product.
The tier process is sequential. Therefore any violation of sequence different from the earlier defined by the user will result in the following error:
To remove an erroneous entry, select the entry then click on the remove button to effect the removal.
Click on the create button to commit the loan product into the system.
On successful completion you will get a pop up message confirming that the operation was successful.
Editing A Loan Product:
1. First Identify the the Loan product to be edited:
Loan Products Auxiliary Appraisal Factors Fig 5
Then click on the edit icon
against it to open the following window:
Loan Products Auxiliary Investment Appraisal Factors Fig 6
On this edit screen:
Make appropriate changes to the fields to be affected.
Proceed to the secondary tab and flags tab respectively and make the necessary amendments to the applicable fields accordingly.
Auxiliary Appraisal Factors :
Loan Products Auxiliary Investment Appraisal Factors Fig 7
Select an entry then click remove to get rid of it, in case it was erroneously captured.
Click update to commit the changes into the system.
On successful completion you will get a pop up message confirming that the operation was successful.
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