Versions Compared

Key

  • This line was added.
  • This line was removed.
  • Formatting was changed.
 

About Loan Accounts

A loan account is an instance of a loan product. A loan account has a unique account number, a specified interest rate, and it is owned by one , and only one , client or group. 

A loan account can be created for loan products that are active in Mifosan active client or group based on a loan product that is active on the submitted date. When a loan account is created, it inherits the rules and defaults from the loan product definition. Some . Your financial institution may allow some of the inherited information may to be modified , for a loan account depending on how the loan product is defined.

A client may have multiple simultaneous loan accounts within the financial institution's policies, defined in the Product Mix

Note

In the case of a group loan application, individual client loan accounts belonging to members of the group are included for the purposes of applying product mix rules.

Loan accounts can be opened for active clients only.

Charges (fees and penalties) can be charged to loan accounts in three ways:

  • Charges are inherited from the product definition. A loan officer may have the ability to remove one or more of these charges for a loan account. When a charge is removed from a loan account, other loan accounts are not affected.
  • Charges (not yet associated with the loan account) can be selected and attached to the loan account.
  • Miscellaneous charges (one time charge) can be charged to a loan account. The loan officer specifies the amount, which is added in the next payment.



    Panel

    On this page:

    Table of Contents
    maxLevel3
    minLevel3
    printablefalse


    The loan account lifecycle is illustrated in the Mifos X Loan Account Lifecycle diagram. Loan account

    states

    statuses are visually indicated in Mifos X using the

    color

    colour scheme illustrated in the Mifos X Loan Account Lifecycle diagram.

     

    Image Modified

     

    Figure Mifos X Loan Account Lifecycle

     

    The loan account actions

    and transactions for Loan Accounts

    /transactions availability and affect on the loan account life cycle status are: 

    Previous
    State
    statusAction/TransactionResulting
    State
    status
    N/AAdd LoanPending Approval
    Pending Approval

    Add Loan Charge

    Pending Approval

    Approve

    Approved


    Modify Application

    Reject

    Assign Loan Officer

    Withdrawn by client

    Delete

    Add Collateral

    Guarantor

    Loan Screen Reports

    Pending Approval

    Approved

    Pending Approval

    Cancel (Rejected)


    Assign Loan Officer

    Pending Approval


    Withdrawn by client

    Cancel (Withdrawn)


    Delete

    N/A


    Add Collateral

    Pending Approval

    Pending Approval

    Guarantor

    Pending Approval

    Approved

    Assign Loan Officer

    Approved


    Disburse

    Active

    Disburse to Savings

    Active

    Undo Approval

    Pending Approval

    Add Loan Charge

    Approved

    Guarantor
    Loan Screen Reports

    Add Loan Charge

    Make Repayment

    Undo Disbursal

    Waive Interest

    Write-Off
    Approved
    Active

    Add Loan Charge

    Active

    Pending Approval

    Approved

    Approved

    Approved

    Active

    Prepay Loan

    Active if balance owing is greater than zero

    Inactive (Obligation Met) or Closed (Overpaid) if balance is equal or less than zero


    Make Repayment

    Active if balance owing is greater than zero

    Closed (Obligation Met) or Closed (Overpaid) if balance is equal or less than zero


    Undo DisbursalApproved

    Waive InterestActive

    Write-OffClosed (Written Off)

    Close (as Rescheduled)

    Close 

    Loan Screen Reports

    Active

    Active

    Approved

    Active

    Closed (

    Written Off

    Rescheduled)

    Closed (Rescheduled)

    CloseClosed (Obligation Met) or Closed (Overpaid)
     Active


    Panel
    bgColorwhite
    titleBGColorwhitesmoke
    titleTable of Contents

    Child pages (Children Display)
    depth2
    styleh5


    Note

    An active loan account in good standing is indicated by a green status. A active loan account that is not in good standing is indicated by a red status.

    Group Loan Accounts 

    There are three main types of loan account for groups: a group loan, a joint liability group (JLG) loan and a Bulk JLG loan for a group.  

    Group

    loan accounts differ from individual accounts in the following ways:
    • Responsibility for the loan is shared equally among the members of a group

    Group Loan application : If the group wants take a loan (as group one loan) and do not want track how the loan is spitted between (among)the group members and as group repayment is collected. In this case only one loan account is created against the particular group. ( This is feature is useful for Bank linkage programs, where Nationalized Banks provide loan to a group rather than to member and as group need to repay the loan ex: SHGs)

    PanelOn this page: Table of ContentsmaxLevel3minLevel3printablefalse

    Loan account: A group loan account is a single loan account shared by all members of a group. Members of the group are jointly responsible for repaying the loan. The group is treated collectively by the financial institution as a single entity. This feature is useful for Bank linkage programs, where nationalized financial institutions provide loans to a group rather than to members, for example, SHGs. 

    JLG (Joint Liability Group) loan accountA JLG loan account belongs to an individual client who is a member of a group. The client who holds the loan account has primary responsibility for repaying the loan but the group in effect guarantees the loan. This feature is useful for financial institutions that follow the Grameen or similar methodology (center, group and joint liability group loans). JLG loan accounts are similar to an individual loan account, but individual loan accounts do not appear in the collection sheet.  

    Bulk JLG Loan Account: A Bulk JLG loan account provides an interface to apply a JLG loan to multiple clients in a group. On the client level, it is same as JLG loan account. It is kept to be used in the scenarios when it is required to add a JLG loan to multiple clients with the same Loan Product. Although the functionality to modify the loan details is also provided so that loan data can be modified for any specific client. There are some specific fields like oan officer, submitted date that are kept common for all the clients and few other fields are kept specific to provide the flexibility in modifying the data of a specific client loan.    

    Prepay The Loan: 

    Prepaying the loan enables each client to prepay it all at once before the maturity date. On prepaying, client will pay remaining principal amount and interest before maturity date and after that client loan account will be closed.  

    Loan Account Repayment  

    Mifos X enables individuals and groups to process for loan account repayment. 

    Individual repayment processes allow client, group and JLG loan account repayments to be recorded against one loan account at time. These payments may be made through: 

    • repayment of cash or similar negotiable payment type.
    • one-time transfer of funds from a Saving account to a Loan account.
    • standing instructions to transfer funds from a Saving account to a Loan account on a defined schedule. 

    Group repayment processes are available for group and JLG loans. The group processes leverage the collection sheet, which is a bulk processing methodology for group and joint liability group loans repayments. 

    When a loan has been repaid in full regardless of the the payment method, its status will be changed from Active to Closed (obligations met).  

    For loan account repayment see:  


    Note

    Existing loan accounts are unaffected when the loan product they are based upon is changed.

     

    A client may have more than one active loan account as defined by a financial institution's policies, configured in the Product Mix

    Note

    In the case of a group loan application, individual client loan accounts belonging to members of the group are included for the purposes of applying product mix rules.


    Related articles

    Filter by label (Content by label)
    showLabelsfalse
    max5
    spacesdocs
    showSpacefalse
    sortmodifiedshowSpacefalse
    reversetrue
    typepage
    cqllabel in ( "credit" , "loans" , "jlg" , "products" , "portfolio" ) and type = "page" and space = "docs"
    labelscredit loans products portfolio JLG