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Loans Overview
The Loans module manages the lending lifecycle from product setup through application, account creation, disbursement, interest, collections, collateral, portfolio monitoring, and reporting.
Main Areas
Setup covers loan products and product behavior.
Operations covers applications, loan accounts, collections, interest in suspense, portfolio analytics, snapshots, collateral disposal, and PAR reporting.
Accounting setup controls how loan activity posts to the general ledger.
Workspace Reference
| Workspace | How Users Reach It | What Users Usually Do There |
|---|---|---|
| Loan Products | Loans -> Setup -> Products | Configure lending products, interest behavior, amount limits, repayment behavior, security requirements, availability, pricing, and accounting references. |
| Applications | Loans -> Operations -> Applications | Capture requests, review borrower eligibility, attach security details, and approve or reject demand before account activation. |
| Accounts | Loans -> Operations -> Accounts | Review active loan balances, disburse, record repayments, apply accrued interest, payoff, waive, recover, or write off according to permissions. |
| Collections | Loans -> Operations -> Collections | Open collection cases, log collection activities, and track follow-up for delinquent or watched accounts. |
| Interest Suspense | Loans -> Operations -> Interest Suspense | Move interest into suspense or release suspended interest according to policy. |
| Portfolio Analytics | Loans -> Operations -> Portfolio Analytics | Review portfolio health, exposure, repayment behavior, arrears, and risk indicators. |
| Portfolio Snapshots | Loans -> Operations -> Portfolio Snapshots | Capture dated portfolio positions for management and trend reporting. |
| Collateral Disposal | Loans -> Operations -> Collateral Disposal | Register and manage disposal of pledged collateral after policy and recovery approval. |
| PAR Report | Loans -> Operations -> PAR Report | Monitor portfolio-at-risk by aging bucket and portfolio segment. |
TIP
For daily users, the usual flow is Applications first, then Accounts after approval. Finance users should use the journal and reporting workspaces to verify the financial outcome instead of treating loan screens as a replacement for ledger review.
Typical Loan Lifecycle
- Configure the loan product.
- Capture a loan application.
- Review and approve the application.
- Create or activate the loan account.
- Disburse funds through the configured payment channel.
- Apply interest and charges according to product rules.
- Collect repayments.
- Monitor arrears, portfolio quality, collateral, and write-off or recovery activity where applicable.
For a concrete lending example, see Loan Application To Repayment.
Key Controls
Loan products control many downstream behaviors. Product flags, interest settings, accounting method, fees, schedules, arrears rules, and approval rules should be reviewed before live lending begins.