About Loan Accounts
A loan account is a specific instance of a loan product, with a specified interest rate and an account number; and it is owned by a financial institution client.
Loan account can be created for loan products that are active they inherit the rules and defaults from the product definition. Loan accounts can be created for either an individual or a group, depending on whether the product is defined for clients or groups. A group or client can have multiple loan accounts but a single account cannot be given to multiple groups or clients.
Loan accounts can be opened only for Approved/Active clients and groups.
Fees can be charged to loan accounts in three ways, both at time of account creation and after.
- Fees are inherited from the product definition. The LO can remove one or more of these fees for a particular account. If a fee is removed from an account, it does not affect other accounts.
- Predefined fees (not yet associated with the account) can be selected and attached to the account.
- Miscellaneous fees (one time charge) can be charged to an account. The user specifies the amount, which is added in the next payment.
Loan accounts can be created by clicking the Open new loan account link in the Quick Start navigation pane on the Home tab. A user with appropriate permissions will then need to then identify the client or group for which the loan is being created and select the loan product that will define the loan.