Loan Application
A Loan Application includes information about the applicant and, if applicable, details about the proposed loan security for assessment.
In the loan procedure, the initial step for a customer or employee is to submit a Loan Application for evaluation. If it’s a secured loan, the Loan Application may also include suggested loan securities.
To access the Loan Application list, go to: > Home > Loan Management > Loan > Loan Application
1. Prerequisites
Before creating and using a Loan Security, it is advised that you create the following first:
2. How to Create a Loan Application
- Go to Loan Application List, click on New.
- Select the Applicant Type.
- Select the Applicant.
- Select the Loan Type. All the loan details like rate of interest, loan accounts will be automatically fetched from the Loan Type.
- Enter the Loan Amount.
- If the loan is a term loan, indicate the Repayment Method. If ‘Repay Over Number Of Periods‘ is chosen, specify the number of months for repayment in the ‘Repayment Period in Months‘ field. If ‘Repay Fixed Amount per Period’ is selected, input the ‘Monthly Repayment Amount‘.
- You can also specify any proposed securities to be pledged against the loan. To do so, check the ‘Is Secure Loan‘ checkbox. Then, in the proposed pledges table, provide details of the securities and their quantities.
- Click ‘Save’ to store the Loan Application as a draft. Click ‘Submit’ to formally submit the loan application.
3. Features
3.1 Creating the Loan Security Pledge
A Loan Security Pledge based on the proposed securities can be created from the Loan Application itself via Create button on the top right. This Loan Security Pledge can then be pledged against a loan as an initial Loan Security Pledge.
3.2 Submitting the Loan Application
After submitting and approving a Loan Application, you can generate a Loan from it by selecting the ‘Create’ button. All necessary details from the Loan Application will be automatically transferred to the loan.