General Setup
for Profit Rate Loan Products
Overview
This section
details the general parameters for setting up Loan Products that utilize the
Profit Rate interest calculation method.
Path: Setup > Loan
Product > Add a New Loan Product
Important: The following fields
are required and must be completed: Description,
Interest Calculation Method, Payment Frequency, Default Number of Instalments,
Maximum Number of Instalments, Minimum Loan Amount, Maximum Loan Amount, Maximum
Administration Fee, Maximum Preparation of Business Plan Fee, and Maximum Number
of Days Between Date Granted and First Instalment Date.
Please note
that only field values applicable to your legal entity's country and the
selected interest calculation method will be displayed.
Interest will be recorded during the
Month End process,
which runs automatically on the back-end according to the date specified in the
General Accounting Setup. Any outstanding interest and fees will be recorded
upon the final payment of a loan. Interest and fees will also be recorded if a
special Month End is requested and executed for the Legal Entity on that
specific date.
Adding a New
Loan Product (General Screen)
- Click on Add a New Loan
Product.
- On the General Screen, complete the following
fields:
- Description: Provide a descriptive name for
the Loan Product.
- Enabled: Select this checkbox to activate the
loan product for use.
- Interest Calculation
Method: Select Profit Rate Interest Calculation
Method from
the list.
- Payment Frequency: Select
the applicable payment frequency (e.g., Fortnightly, Monthly,
Monthly by Rule).
- Initial Loan Amount: Specify the default
initial loan amount for this product.
- Minimum Loan Amount: Specify the lowest
permissible loan amount for this product.
- Maximum Loan Amount: Specify the highest
permissible loan amount for this product.
- Initial Number of
Instalments: Specify the
default number of installments for this product. This value cannot be less
than 1.
- Minimum Number of
Instalments: Specify the
lowest permissible number of installments for this product.
- Maximum Number of
Instalments: Specify the
highest permissible number of installments for this product.
- RSA Note: Affordability Guidelines suggest
that Credit Providers should not offer unsecured term loans for longer
than 5 years.
- Skip First Instalment
Date: Select this
checkbox if the first installment date should be skipped when calculating
installment dates.
- Print Loan Schedule: Select this checkbox if
you want the system to automatically print a loan schedule when a new loan
is created using this product.
- Min Days between Date Granted and
First Instalment Date: Enter the minimum number of days allowed between the loan's
granted date and the first installment date.
- Max Days between Date Granted and
First Instalment Date: Enter the maximum number of days allowed between the loan's
granted date and the first installment date.
Buttons
- Cancel: Click if you do not want to save the
information to the database.
- Save: Click to save the information to the
database.
- Close: Click to close the request and return to
the previous page without saving.
- Save & Close: Click to save the information
to the database and then return to the previous
page.