Loan Product Fields
Loan Product Fields
Field Name (attribute) | Description | Example | Validations (if applicable) |
|---|---|---|---|
Details Section | |||
| Product name | The product name is a unique identifier for the lending product. The product name is used:
| Home Building Loan A | Required field Alphanumeric Maximum 100 characters |
| Short name | The short name is a unique identifier for the lending product. The short name is used:
| BldA | Required field Alphanumeric Maximum 4 characters |
| Description | The description is used to provide additional information regarding the purpose and characteristics of the loan product. The description is used:
| Home Building Loan A is available for new construction only | Alphanumeric Maximum 500 characters |
| Fund | Loan products may be assigned to a fund set up by your financial institution. If available, the fund field can be used for tracking and reporting on groups of loans. If your financial institution has set up funds, the Fund list will be populated and you will be able to select a fund. | May be left blank or select from list. | |
| Start date | The date that the loan product will be active and available to clients. If blank, the loan product will be active as soon as it is created. Select the date from the calendar popup. | 01 Jan 2013 | Date dd mmm yyyy |
| Close date | The date that the loan product will become inactive and unavailable to clients. If blank, the load product will never become inactive. Select the date from the calendar popup. | 31 Dec 2020 | Date dd mmm yyyy |
| Include borrower loan counter | A borrower loan counter (cycle) is used for tracking how many time the client has taken this particular product. This is useful for measuring social indicators with each loan a client has taken. It is used for PPI related reporting. Check this checkbox to include a loan counter for a borrower (client). Uncheck this checkbox to not include a loan counter for a borrower (client). | ||
| External Id | The Id provided additionally to identify the loan product | ||
| Applicable for | An admin would be able to map the loan product to the client level, group level or for all the customer using this field. Select the relevant drop-down value from this field i.e.,
| Vehicle Loan should be sanctioned only to the client level where the restriction would be Government officer (Client classification) | |
| Currency Section | |||
| Currency | The currency in which the loan will be disbursed. Currencies are set up by your financial institution. Select the loan product's currency from the Currency list. | Required field | |
| Decimal places | The number of decimal places to be used to track and report on loans. | 2 | Required field Numeric |
| Currency in multiples of | You can enter multiples of currency value. For example, if you put "multiples of 100", the currency value will be rounded off to 200, 300, 400, etc. | 0 | Required field Numeric |
| Installment in multiples of | You can enter multiples of installment value. For example, if you put "multiples of 10", the installment value will be rounded off to 10, 20, 30, etc. | ||
Terms Section | |||
| Terms vary based on Loan Cycle | A loan cycle tracks the number of times a borrower has taken a particular loan. Leave this checkbox unchecked if the terms do not vary based on the Loan Cycle. Check this checkbox if terms vary based on the Loan Cycle. See additional fields for additional information required for this type of loan product. | ||
Principal: Minimum Default Maximum | These fields are used to define the minimum, default, and maximum principal allowed for the loan product. When a client applies for a loan account, the loan account application will be populated with the default principal amount. The lending officer may modify the default within the minimum to maximum range. Using the example values (see column to the right), a new loan account application for this loan product would default to a principal amount of 100 (in the selected currency). The lending officer may modify the principal as low as 25 and as high as 250. | Minimum: 25 Default: 100 Maximum: 250 | Required fields Numeric whole numbers |
Number of repayments: Minimum Default Maximum | These fields are used to define the minimum, default, and maximum number of repayments allowed for the loan product. When a client applies for a loan account, the loan account application will be populated with the default number of repayments. The lending officer may modify the default within the minimum to maximum range. Using the example values (see column to the right), a new loan account application for this loan product would default to 12 repayments. The lending officer may modify the number of repayments as low as 6 and as high as 60. | Minimum: 6 Default: 12 Maximum: 60 | Required fields Numeric whole numbers |
| Is Linked to floating interest rate? | Sets a flag to link the floating interest rate with the product. | ||
Nominal interest rate: Minimum Default Maximum Period | These fields are used to define the minimum, default, maximum, and period for the nominal interest rate allowed for the loan product. The minimum, default, and maximum nominal interest rates are expressed as percentages. The period value is selected from the choices in the list (Per Month, Per Year). The period value is not modifiable on individual loan accounts. When a client applies for a loan account, the loan account application will be populated with the nominal interest rate. The lending officer may modify the default within the minimum to maximum range. Using the example values (see column to the right), a new loan account application for this loan product would default to a nominal interest rate of 1.5. The lending officer may modify the nominal interest rate as low as 1.25 and as high as 2.0. In this example, the nominal interest rate will be applied monthly. | Minimum: 1.25 Default: 1.5 Maximum: 2.0 Period: Per Month | Required fields Numeric with decimals |
Repaid every | These fields are input to calculating the repayment schedule for a loan account and are used to determine when payments are due. Enter a number into the first field and then select the frequency from the list (Days, Weeks, Months). Using the example values (see column to the right), a new loan account application for this product would be initially set for repayments every 2 weeks. The lending officer may change the payment timing during the loan application process. | 2 Weeks | Required fields Numeric and select from list |
| Loan Term | This is to define the term for a loan. Here you can provide min and max loan term. | ||
| minimum days between disbursal and first repayment date | Sets a gap of days should be there between disbursal date and the first repayment date. The gap can be in terms of days or number of repayments For an example the instance value is 15 days and the disbursal date is 5th June 2017 then the first repayment day should be on or after 20th June 2017 | ||
| Is Minimum duration check applicable for all disbursements | check this check box to configure minimum days for all disbursal. | ||
Setting Section | |||
| Amortization | The Amortization value is input to calculating the repayment amounts for repayment of the loan. Select Equal installments or Equal principal payments from the Amortization list. If Equal installments is selected all repayment amounts will be equal but the interest, fees, penalties, and principal amounts will vary with each repayment. If Equal principal payments is selected, the repayments amounts will vary depending upon the interest, fees, and penalty amounts in the repayment and the principal amount will be the same for all repayments. | Required field | |
| Interest method | The Interest method value is input to calculating the payments amount for repayment of the loan. Select Flat or Declining balance. | Required field | |
| Installment Calculation period | Installment calculation period can be daily/same as repayment period. Meaning the installment are calculated daily or on the repayment days. | ||
| Calculate IRR from Interest Rate | If this checkbox is selected IRR gets calculated automatically from the provided interest rate. | ||
| Interest calculation period |
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| Calculate interest for exact days in partial period | Check this checkbox to enable the interest calculation for exact days in a partial period. Say for an example if the client repays a loan within 20 days from the previous repayment date then the interest is calculated for only 20 days instead of month. To enable this the interest calculation period should be daily | ||
| Arrears tolerance | With 'Arrears tolerance' you can specify a tolerance amount and if the loan is behind (in arrears), but within the tolerance, it won't be classified as 'in arrears' and part of the portfolio at risk. | If 'Arrears Tolerance is $ 100 then upto that amount is not considered as arrears. | |
| Repayment strategy | Repayments have up to four components:
The repayment strategy determines the sequence in which each of the components is paid. Mifos Style Replicates the same payment order of our previous legacy mifos software. Payment order:
Early payment: Any payment that pays off an installment that occurs before the due date of the installment. There is no incentive/advantage to making an early payment as theres no decrease in cost of the loan. On time payment: Any payment that pays off an installment that occurs exactly on the due date of the installment. Late payment: Any payment that pays off an installment that occurs after the due date of the installment. There is no penalization for late payment. The total cost of the loan does not automatically increase, no penalties are automatically applied to the loan. Principal Interest Penalties Fees Order The key aspect of this strategy is the payment order. Payment order:
Early payment: Any payment that pays off an installment that occurs before the due date of the installment. There is no incentive/advantage to making an early payment as theres no decrease in cost of the loan. On time payment: Any payment that pays off an installment that occurs exactly on the due date of the installment. Late payment: Any payment that pays off an installment that occurs after the due date of the installment. There is no penalization for late payment. The total cost of the loan does not automatically increase, no penalties are automatically applied to the loan. Interest Principal Penalties Fees Order The key aspect of this strategy is the payment order. Payment order:
Early payment: Any payment that pays off an installment that occurs before the due date of the installment. There is no incentive/advantage to making an early payment as theres no decrease in cost of the loan. On time payment: Any payment that pays off an installment that occurs exactly on the due date of the installment. Late payment: Any payment that pays off an installment that occurs after the due date of the installment. There is no penalization for late payment. The total cost of the loan does not automatically increase, no penalties are automatically applied to the loan. RBI (India) Per RBI regulations, all interest must be paid (both current and overdue) before principal is paid. For example taking a loan with two installments due (one current and one overdue) of 220 each (200 principal + 20 interest) - A partial payment of 40 results in payment been broken up as 20 interest on installment #1 (200 principal remaining) and 20 payment to interest on installment #2 (200 principal remaining) Payment order:
Early payment: Any payment that pays off an installment that occurs before the due date of the installment. There is no incentive/advantage to making an early payment as theres no decrease in cost of the loan. On time payment: Any payment that pays off an installment that occurs exactly on the due date of the installment. Late payment: Any payment that pays off an installment that occurs after the due date of the installment. There is no penalization for late payment. The total cost of the loan does not automatically increase, no penalties are automatically applied to the loan. Early Payment Strategy This strategy works similar to the Interest Principal Penalties Fees Order for on-time and late payments, i.e Payment order:
Early payment: Any payment that pays off an installment that occurs before the due date of the installment. There is no incentive/advantage to making an early payment as theres no decrease in cost of the loan. However, early payments are allocated only towards principal payments of future installments. Interest and fees/penalties of future installments are not paid and may be waived manually if required On time payment: Any payment that pays off an installment that occurs exactly on the due date of the installment. Late payment: Any payment that pays off an installment that occurs after the due date of the installment. There is no penalization for late payment. The total cost of the loan does not automatically increase, no penalties are automatically applied to the loan. | ||
| Initial broken-period interest computation | For Ex: If the loan amount 10000 disbursed on 1 Jan, repay every 1 month. But while applying for a loan repay on is given as 15 Feb. Hence the frequency of repayment days are extended by 15 days. In this scenario initial broken interest amount can be distributed by various way. There are three options i.e., 1.Distribute equally among all installments : Upon selecting this option will distribute the broken period interest equally for all the installments.Refer Distribute equally among all installments for calculation 2.Add to first installment interest: Upon selecting this option will add the broken period interest to the first installment 3.Post interest: Upon selecting this option will add the broken period interest to the balance amount. Say for an example the broken period interest is 50 and loan amount balance 10000, interest is calculated on 10050 (Balance +broken period interest). Refer Post Interest for calculation. | ||
| Interest free period | If the Interest Free Period is '4' and the client's Repayment Frequency is every week, then for the first four weeks the client need not to pay interest, he has to pay principle due for that week only. | ||
Moratorium On principal payment On interest payment | Suppose, If Morotorium
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| Days in year | Days in a year can be Actual/360/364/365 days and this days are used for the calculation of Interest when interest calculation period is daily and interest method is declining balance. | ||
| Days in month | Days in a month can be Actual/30 days and this is used for the calculation of interest. | ||
| Weeks in year | Weeks in a year can be 52/48 weeks and this is used for the calculation of interest. | ||
| Allow fixing of the installment amount | You can overwrite the installment amount in the loan account by selecting this checkbox. | ||
| Adjust first Installment for rounding | This sets the flag to allow adjustment of first installment for rounding. | ||
| First Installment in multiples of | You can enter multiples of first installment value. For example, if you put "multiples of 10", the installment value will be rounded off to 10, 20, 30, etc. | ||
| Adjust Interest for rounding | You can round the interest amount by selecting this check bx | ||
| Close Loan On Over Payment | You can set the product to close the loan account in case any over payment done. | ||
| Number of days a loan may be overdue before moving into arrears | A loan is in arrears once the number of days entered into this field is exceeded. If this field is blank, the loan will be in arrears the day after a scheduled payment is missed. If 5 is specified, as in the example value, the loan will be in arrears on the 6th day after a scheduled payment is missed. | 5 | |
| Maximum number of days a loan may be overdue before becoming a NPA (non performing asset) | A loan is a NPA (non performing asset) once the number of days entered into this field is exceeded. If this field is blank, the loan will be an NPA the day after a scheduled payment is missed. If 35 is specified, as in the example value, the loan will be an NPA on the 36th day after a scheduled payment is missed. | 35 | |
| Account moves out of NPA only after all arrears have been cleared? | The Loan account moves out of the NPA (Non performing Asset) state only after all the arrears have been cleared. | ||
| Principal Threshold (%) for Last Installment | add the extra amount to previous installment | ||
| Is Variable Installments Allowed? | The product supports variable installment if the checkbox is selected | ||
| Minimum gap between installments | Integer value that denotes the minimum number of days that need to be present between any two installments for this loan product. | Mandatory field This field is enabled if only if "Is Variable Installments Allowed?" is enabled. | |
| Maximum gap between installments | Integer value that denotes the maximum number of days that need to be present between any two installments for this loan product. | Optional Field This field is enabled if only if "Is Variable Installments Allowed?" is enabled. | |
| Validate Actual Disbursement Date Against Expected Disbursement Date? | Sets minimum gap of days between the Actual Disbursement date and expected d | ||
| Is allowed to be used for providing Topup Loans? | If selected the product can be used as top-up loans | ||
| Is Upfront Amount Collection Allowed | Sets a flag to allow upfront amount collection. | ||
| Principal (%) To be transferred to savings account | Sets a flag to transfer a part of principal amount (% of principal) from loan account to saving account | ||
Interest Recalculation Section | |||
| Recalculate Interest | Please check the box if you want to recalculate interest for each period based on outstanding for that month/week. Once you check it, it shows hidden fields to Recalculate Interest as shown here. | ||
Guarantee Requirements Section | |||
| Place Guarantee Funds On-Hold? | Sets a flag to hold the Guarantee fund. | ||
Tranche Details Section | |||
| Enable Multiple Disbursals | Leave this checkbox unchecked if the loan is a single disburse loan. Check this checkbox if the loan is a multi disburse loan. See additional fields for additional information required for this type of loan. | ||
Charges Section | |||
| Charges | Select a charge from the Charges list and click Add. If more charges apply to the loan product, select additional charges and click Add for each. | ||
Overdue Charges Section | |||
| Overdue Charges | Select an overdue charge from the Overdue Charges list and click Add. If more overdue charges apply to the loan product, select additional overdue charges and click Add for each. | ||
Accounting Section | |||
| Accounting | Select one from:
If Cash, Accrual (periodic), or Accrual (up front) is selected, see additional fields. | ||