In order to create a new loan application, find the customer for whom a loan application should be created in the Profiles" tab. Then click on the "Create application button". After that you will be given a loan application form:
Here you need to fill the following:
- Specify the loan product;
- Specify the loan amount;
- Specify the interest rate;
- Grace period;
- Disbursement date;
- Preferred repayment date.
Once you have specified everything, click on the "Preview" button to see the repayment schedule and click on the "Save" button to proceed.
Then open the third tab called "Additional information" on the left. In this tab you will the custom fields you created for loan application. By clicking on "Edit", you will be able to specify additional information for loan application.
The next tab is "Attachments". Here you can upload documents associated with your customers. To upload a document click on "+Add", choose the needed file from your computer, leave comments if any, then upload it.
After the attachments button, there is guarantors section. A guarantor is a person who guarantees to pay for someone else's debt if he or she should default on a loan obligation. A guarantor acts as a co-signer of sorts, in that they pledge their own assets or services if a situation arises in which the original debtor cannot perform their obligations.
In order to add guarantors:
- Click on +Add button
- Guarantors are registered in the system as profiles and are available in the list.
- Name: choose the guarantor in the list of profiles;
- Relationship: choose the relationship in the list;
- Amount: specify the amount guaranteed by the guarantor;
- Description: is used to store data related to guarantor as texts.
- Once you have specified everything, click on "Save"
Collateral is a property or other asset that a borrower offers as a way for a lender to secure the loan. If the borrower stops making the promised loan payments, the lender can seize the collateral to recoup its losses. Since collateral offers some security to the lender should the borrower fail to pay back the loan, loans that are secured by collateral typically have lower interest rates than unsecured loans.
- Click on + Add button in order to add a collateral.
- Then fill in the following fields:
- Type - choose the collateral from the predefined list of collaterals;
- Name – Put the name of the collateral;
- Amount – put the amount of the estimated collateral;
- Once you have specified everything, click on "Save".
After the collaterals button, there is print out section. Print out section allows to print out documents such mortgage bill of salem letter of offer and loan application for your convenience or by your client request.
After the print out button, there is credit committee section. Credit committee are a group of people responsible for assessing the credit standing and ability to repay debt of prospective borrowers of a lending institution. Other duties of the committee might include determining the institution's credit policy and spotting potential risks of various transactions assumed by the institution.
Credit committee members can approve, reject the loan or refer to loan officers. If credit comittee members approve the loan, the next step is disbursement.
Once the loan is disbursed, it will be active and you can search this loan in "Loans".