Regarding loan repayments, LOAN PERFORMER suggests a due amount for the group and if tracking at group member level is activated, also for the group members. You can change the amounts if more or less has been paid. If tracking at member level is activated, LOAN PERFORMER tracks the account balances for the whole group as well as for its members.
LOAN PERFORMER works with "loan products". Each product has characteristics (interest, installment periods etc.). The manager can set default values for each of these characteristics and indicates whether these values are compulsory at the point of entry or not. Thus the program can be configured to be very rigid or very flexible.
Each loan has to be classified according to Loan Fund, Credit Officer in charge and Business Sector. You can also define 3 additional categories to classify loans. E.g. one category can be used to define the use of the loan as "Assets" or "Working Capital", another category can be used to distinguish between "Subsidised" and "Non-Subsidised" loans and a third to classify loans as "Consumer Loans" and "Production Loans". For each category you can enter up to 999 different alternatives. You can create reports on disbursement, outstanding balances, repayment rates and repaid amounts for each alternative.
Installments can be entered as daily, weekly, bi-weekly, half-monthly, monthly, two-monthly, quarterly, four-monthly, five-monthly, semi-annual or annual installments. A grace period can be entered as well. LOAN PERFORMER proposes a loan repayment schedule, based on the information of the user. But for each installment, date, principal amount, interest or commission can be modified to suit specific repayment needs. This feature can be en-/disabled in the configuration. The manager can enter non-working days and holidays. Due dates that fall on one of these days can be reported automatically to the last working day before the due date or to the next working day (or not changed at all).
For individual loans, guarantors and/or collateral have to be supplied (if defined in the configuration). Interest can be calculated on a Flat Rate, Declining Balance Amortization or Declining Balance Discounted.
Interest calculation can be set according to loan period in number of days or according to installment period. All interest can be paid in equal parts with every installment, all with the first installment or interest is deducted from the disbursed amount. It is even possible to calculate a repayment schedule whereby the client has to pay only interest installments during the grace period. Also balloon payments at the end of the loan are supported.
The branch manager can set a percentage of the loan amount that should be available as a Loan Guarantee amount on the savings account. If this percentage is set to 0%, the loan module can be used independently of the savings module. Otherwise LOAN PERFORMER will check whether the loan guarantee is available on the savings account to guarantee the loan. The percentage can be set by the manager. Withdrawals from the loan guarantee or compulsory savings account are possible up to the balance that guarantees the loan. If the client has more than 1 loan outstanding, the threshold is much higher. As soon as the loan is paid off (or the loan application rejected), the client can withdraw beyond the original balance.
You can set a parameter to indicate whether Commission and/or Stationary has to be paid. LOAN PERFORMER supports 2 types of commission, both as a percentage of the loan amount, and 1 type, which is just a flat amount. The branch manager can set the percentages and the amounts as parameters in the program and he/she can indicate whether the data-entry person may change the defaults. You can indicate whether commissions have to be paid for all loan applications or only for approved loans. Commissions can be paid in cash, by cheque or as a transfer to the MFI's bank account. Disbursements can be made either in cash, by cheque, to the clients bank account or to the clients savings account. Total interest can be deducted at disbursement. Disbursements can be made in installments. At disbursement you can also deduct charges. |
