Term Loans on My Docs

Customer Loan Types

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The Loan Types feature is used for creating a new term Loan. This is used in categorizing term loans. It is a needed component of the term loan feature.

Customer Loans

Tue, 13 Oct 2020 15:21:01 +0200

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Create

Creating and processing Loans is an activity that can be initiated from MONEY MARKET->Term Loans->Loans as shown in Fig 2.

Loan Repay Plans

Tue, 13 Oct 2020 15:21:01 +0200

These are schedules prepared ahead of time that both parties agree to. This schedules stipulate the loan principal and interests to be paid down on the loan, and the amounts outstanding on the loan. The repayment plan sub-module can be found by navigating to Money Market-> Term Loans-> Repayment Plans. Repayment Plans gives visibility ahead of time on the performance of the loan, expecially in the case of a loan draw down.

Loan Payment Entries

Tue, 13 Oct 2020 15:21:01 +0200

Fig 4 Repayment Entries

Concepts & Definitions

Repayment entries record each scheduled or actual payment made against a term loan. Each repayment reduces the outstanding principal and records the interest component for the period. The system generates a repayment schedule when a loan is disbursed — these entries represent the individual instalments as they fall due and are paid.

Loan Provision Entries

Tue, 13 Oct 2020 15:21:01 +0200

This Feature provides for a loan in the form of a caution on your accounting books. The aim is to reduce shock in case there is eventually a loan default. There is a certain percentage of the loan total sum that you must provision on the accounting books as pottential losses, which inturn reduces the impact of the loan on your financial books in cases of default.