Loan Products

The Loan Product page lets you create, manage, and configure different loan products your financial institution offers. It allows you to define loan terms, interest rates, repayment schedules, and associated fees with flexibility. The page lets you link loan products to the appropriate General Ledger (GL) accounts for accurate financial tracking.

Accessing The Loan Product Page

1. Log into the application using your credentials.

2. From the dashboard, navigate to Accounts in the side menu.

3. Select Products from the dropdown list.

4. Select Loan Product from the Products dropdown list.

Create A Loan Product

To create a new current Loan product:

1. Click the Add button at the page's top left.

2. Fill in the following required Loan Product Information:

   • General Information

     • Name of Product - Enter the name of the product (Mandatory)

     • Product Code - Enter a 3 digit unique numeric code to represent the product (Mandatory)

     • Product Category - Select the most appropriate product category from the dropdown list of categories (Mandatory)

   • Loan Size

     • Limit - Specify if the product has a loan principal disbursement limit or it's unlimited

     • Security Deposit Requirement - Specify if the product requires equity contribution or not.

     • Security Deposit Type - If security deposit requirement is True, specify if it's a Flat or Percentage on Loan Amount. If the chosen option is Flat, you will be required to enter the amount or enter the percentage rate if the chosen option is percentage on loan amount option.

   • Tenure/Principal

     • Principal Repayment Type - Select the repayment type from the dropdown list of options (Prorated, End of Contral, Upfront or Equal Monthly Instalment)

     • Principal To Be Repaid Every - Specify the number of times principal is to be repaid within a specific Frequency (Days, Weeks, Months or Years) E.g. Principal to be repaid every [1] [Week] for a weekly principal repayment or; Principal to be repaid every [1] [Month] for a monthly repayment or; Principal to be repaid every [3] [Months] for a quarterly repayment. Over How Many Instalments - Specify the number of instalments the principal amount will be divided into. This must be in line with the frequency option E.g. [1] - [Week] - [4] will be interpreted as a 4 weeks loan with a principal repayment interval of once a week over 4 instalments counts [1] - [Month] - [6] will be interpreted as a 6 months loan with a principal repayment interval of once a month over 6 instalments counts [3] - [Month] - [4] will be interpreted as a 12 months loan with a principal repayment interval of quarterly over 4 instalments counts.

     • Interest Repayment Type - Select the repayment type from the dropdown list of options (Prorated, End of Contral, Upfront or Equal Monthly Instalment)

     • Interest To Be Repaid Every - Specify the number of times interest is to be repaid within a specific Frequency (Days, Weeks, Months or Years) E.g. Interest to be repaid every [1] [Week] for a weekly interest repayment or; Interest to be repaid every [1] [Month] for a monthly repayment or; Interest to be repaid every [3] [Months] for a quarterly repayment. Over How Many Instalments - Specify the number of instalments the interest amount will be divided into. This must be in line with the frequency option E.g. [1] - [Week] - [4] will be interpreted as a 4 weeks loan with an interest repayment interval of once a week over 4 instalments counts [1] - [Month] - [6] will be interpreted as a 6 months loan with an interest repayment interval of once a month over 6 instalments counts [3] - [Month] - [4] will be interpreted as a 12 months loan with an interest repayment interval of quarterly over 4 instalments counts.

   • Interest Repayment

     • Interest Accrual Mode - Select the applicable interest accrual mode from the dropdown list (Fixed, Reducing Balance or Reducing But Equal)

     • Apply Default Loan Interest - Toggle "On" the switch button If you desire to penalize loan customers who have defaulted in meeting their repayment obligation as at the due dates else, the toggle "Off" the button.

     • Grace Period To Start Default Loan Interest Charge - Specify the number of days the system should delay before it starts accruing default charge on the defaulted amount. Enter "0" if you want the system to commence immediate accrual of default charge.

     • Default Loan Interest Charge Duration - Select from the options whether to charge default interest continuosly or discontinue charging after a set period

     • Defaulting Loan Interest Rate - Enter the default interest rate value. Note that this rate should be converted to daily equivalent. E.g 60% interest per annum should be entered as 0.16 (60% divided by 365days)

     • Discontinue Default Loan Interest Charge (In Days) - Where default interest charge is set to be discontinuos, Enter the number of days after which the system is expected to discontinue default charge accrual.

     • Unpaid Default Loan Interest Charge Account - Select from the dropdown list of active Unpaid Default Loan Interest Charge general ledgers to record Default Loan Interest Charges. If this field is empty, kindly refer to General Ledgers on how to create a general ledger Here are the properties for creating an Unpaid Default Loan Interest Charge GL. Step 1 - GL Creation

       • GL Name: XYZ Unpaid Default Loan Interest Charge Account

       • Level 1 Category: Asset

       • Level 2 Category: Other Assets

       • Level 3 Category: Miscellanous Other Assets

       • IFRS Category: Other Assets

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: Due and Unpaid Fees

       • Account: Select the XYZ Unpaid Default Loan Interest Charge Account

     • Suspended Default Loan Interest Charge Account -

       Here are the properties for creating a Suspended Default Loan Interest Charge Account. Step 1 - GL Creation

       • GL Name: XYZ Suspended Default Loan Interest Charge Account

       • Level 1 Category: Liability

       • Level 2 Category: Other Liabilities

       • Level 3 Category: Unearned Income

       • IFRS Category: Other Liabilities

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: Fees In Suspense

       • Account: Select the XYZ Suspended Default Loan Interest ChargeAccount

     • Default Loan Interest Charge Income Account -

       Here are the properties for creating a Default Loan Interest Income Charge Account. Step 1 - GL Creation

       • GL Name: XYZ Default Loan Interest Income Charge Account

       • Level 1 Category: Income

       • Level 2 Category: Income Fron Non Financial Services

       • Level 3 Category: Other Income From Non Financial Services

       • IFRS Category: Other Income

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: NA

       • Account: NA

   • Reportings

     • Principal Due and Unpaid - Select from the dropdown list of active Principal Due and Unpaid general ledgers to record Due and Unpaid Principal Amount. If this field is empty, kindly refer to General Ledgers on how to create a general ledger

     • Here are the properties for creating a Loan Principal Due and Unpaid Account. Step 1 - GL Creation

       • GL Name: XYZ Principal Due and Unpaid Account

       • Level 1 Category: Asset

       • Level 2 Category: Loans, Advances and Leases

       • Level 3 Category: For Micro Loan Product - Select Due and Unpaid Micro Loan Principal For Small & Medium Loan Product - Select Due and Unpaid Small & Medium Principal For Staff Loan Product - Select Due and Unpaid Staff Loan Principal For Hore Purchase Loan Product - Select Due and Unpaid Hire Purchase Loan Principal

       • IFRS Category: Loans and Advances To Customers

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: For Micro Loan Product - Select Due and Unpaid Micro Loan Principal For Small & Medium Loan Product - Select Due and Unpaid Small & Medium Principal For Staff Loan Product - Select Due and Unpaid Staff Loan Principal For Hore Purchase Loan Product - Select Due and Unpaid Hire Purchase Loan Principal

       • Account: Select the XYZ Principal Due and Unpaid Account

       Here are the properties for creating an Loan Interest Receivable Account. Step 1 - GL Creation

       • GL Name: XYZ Loan Interest Receivable Account

       • Level 1 Category: Asset

       • Level 2 Category: Other Assets

       • Level 3 Category: Accrued Interest Receivable

       • IFRS Category: Other Assets

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: Interest Receivable

       • Account: Select the XYZ Loan Interest Receivable Account

       Here are the properties for creating an Loan Interest Due and Unpaid Account. Step 1 - GL Creation

       • GL Name: XYZ Loan Interest Due and Unpaid Account

       • Level 1 Category: Asset

       • Level 2 Category: Loans, Advances and Leases

       • Level 3 Category: Interest Due and Unpaid

       • IFRS Category: Loans and Advances To Customers

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: Due and Unpaid Interest

       • Account: Select the XYZ Loan Interest Due and Unpaid Account

     • Here are the properties for creating an Loan Interest In Suspense Account. Step 1 - GL Creation

       • GL Name: XYZ Loan Interest In Suspense Account

       • Level 1 Category: Liability

       • Level 2 Category: Other Liabilities

       • Level 3 Category: Interest In Suspense

       • IFRS Category: Other Liabilities

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: Interest In Suspense

       • Account: Select the XYZ Loan Interest In Suspense Account

       Here are the properties for creating an Loan Interest Income Account. Step 1 - GL Creation

       • GL Name: XYZ Loan Interest Income Account

       • Level 1 Category: Income

       • Level 2 Category: Interest Income

       • Level 3 Category: Interest On Loans and Advances

       • IFRS Category: Interest and Similar Income

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: NA

       • Account: NA

       Here are the properties for creating an Specific Loan Loss Account. Step 1 - GL Creation

       • GL Name: Specific Loan Loss Account

       • Level 1 Category: Liabilities

       • Level 2 Category: Loans Loss Provision

       • Level 3 Category: Specific Loan Loss Account

       • IFRS Category: Other Liabilities

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: Specific Loan Loss Account

       • Account: Select the Specific Loan Loss Account

       Here are the properties for creating an General Loan Loss Account. Step 1 - GL Creation

       • GL Name: General Loan Loss Account

       • Level 1 Category: Liability

       • Level 2 Category: Loan Loss Provision

       • Level 3 Category: General Loan Loss Account

       • IFRS Category: Other Liabilities

       • Transaction Permission: Open

       • Currency: Select your currency

       Step 2 - Other Business Automation set-up

       • Account Type: General Loan Loss Account

       • Account: Select the General Loan Loss Account

   • Loan Fee Apply Loan Fees - Toggle "On" the switch button to apply Loan Fee on the product, else toggle it "Off". Loan Fee - Select the applicable loan fees to be applied on the Loan product. Where there are more than one fee to be applied, user can select multiple. If the dropdown field is empty, kindly refer to Fees on how to create a Loan Fee.

     Here are the properties for creating an Unpaid Loan Fee Account. Step 1 - GL Creation

     • GL Name: XYZ Unpaid Loan Fees Account

     • Level 1 Category: Asset

     • Level 2 Category: Other Assets

     • Level 3 Category: Miscellanous Other Assets

     • IFRS Category: Other Assets

     • Transaction Permission: Open

     • Currency: Select your currency

     Step 2 - Other Business Automation set-up

     • Account Type: Due and Unpaid Fees

     • Account: Select the XYZ Unpaid Loan Fees Account

   • Here are the properties for creating an Suspended Loan Fees Account. Step 1 - GL Creation

     • GL Name: XYZ Suspended Loan Fees Account

     • Level 1 Category: Liability

     • Level 2 Category: Other Liabilities

     • Level 3 Category: Unearned Income

     • IFRS Category: Other Liabilities

     • Transaction Permission: Open

     • Currency: Select your currency

     Step 2 - Other Business Automation set-up

     • Account Type: Fees In Suspense

     • Account: Select the XYZ Suspended Loan Fees Account

   • Penalty

   • Other Configurations

3. Click the Save button to apply.

4. Confirm the action by clicking the “Yes, I want to proceed” button.

Modify A Loan Product

Here's how to modify a Loan Product below:

1. In the Actions column, click the three vertical dots (⋮).

2. Select Modify from the dropdown menu.

3. Update the necessary Loan Product details.

4. Click Update to save and apply the changes.

5. Confirm the action by selecting “Yes, I want to proceed.”

Activate/Deactivate A Loan Product:

To activate/deactivate an existing Loan Product:

1. In the Actions column, click the three vertical dots (⋮) next to the Loan Product you wish to deactivate/activate.

2. Select Deactivate/Activate from the dropdown menu.

3. Confirm the action by selecting “Yes, I want to proceed.”