This section explains how to configure the general parameters for Loan Products that fall under the RSA Unsecured Credit Transaction category, adhering to South African National Credit Act (NCA) regulations.

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.

Only field values applicable to your legal entity's country and the selected interest calculation method will be displayed.

Interest is recorded during the Month End process, which automatically runs in the background based on the date specified in the General Accounting Setup. Any outstanding interest and fees will be recorded upon the final payment of a loan. Additionally, interest and fees will be recorded if a special Month End is requested and executed for the Legal Entity on that specific date.

Setting Up a New Loan Product (General Screen)

1. Provide a Description (name) for the Loan Product.
2. Select the Enabled checkbox to activate this loan product for use.
3. For Interest Calculation Method, select RSA Interest Calculation Method from the list.
4. Select the appropriate Credit Sector:
   • Mortgage Agreement
   • Credit Facility
   • Unsecured Credit Transaction
   • Development Credit Agreement - Small Business
   • Development Credit Agreement - Housing
   • Short Term Credit Transaction
   • Other Credit Agreement
   • Incidental Credit Agreement
   • Development Credit Agreement - Education
   • Development Credit Agreement - Co-operative
   • Development Credit Agreement - Other
5. Select the applicable Payment Frequency from the list.
6. Specify the Initial Loan Amount for this loan product.
7. Set the Minimum Loan Amount for this loan product.
8. Set the Maximum Loan Amount for this loan product.
9. Specify the Initial Number of Instalments. This field cannot accept values smaller than 1.
10. Set the Minimum Number of Instalments for this loan product.
11. Set the Maximum Number of Instalments for this loan product.
    • RSA Note: Affordability Guidelines suggest that Credit Providers should not offer unsecured term loans for longer than 5 years.
12. Select the Skip First Instalment Date checkbox if the first installment date should be skipped when calculating installment dates.
13. Select the Print Loan Schedule checkbox if you want the system to automatically print a loan schedule when a new loan is created using this product.
14. Set the Min Days between Date Granted and First Instalment Date. This is the minimum number of days allowed between the loan's granted date and the first installment date.
15. Set the Max Days between Date Granted and First Instalment Date. This is the maximum number of days allowed between the loan's granted date and the first installment date.

Buttons

• Cancel: Click if you don't 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 close the page, returning you to the previous screen.