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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 an active an active client or group based on a loan product that is active is active on the Submitted Datesubmitted date. When a loan account is created, it inherits the rules and defaults from the loan product. Your financial institution may allow some of the inherited information to be modified for a loan account , depending on how the loan product is defined.

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

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

NoteIn 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.

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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/transactions availability and affect on the loan account

lifecycle state

life cycle status are:

Previous

State

status	Action/Transaction	Resulting

State

status
N/A	Add Loan	Pending 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Withdrawn by client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

Reject

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	Withdrawn by client	Cancel (Withdrawn)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

Approved
Active	Add Loan Charge	Active

Pending Approval

Approved

Active

Add Loan Charge

Make Repayment

Undo Disbursal

Waive Interest

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 Disbursal	Approved
	Waive Interest	Active
	Write-Off	Closed (Written Off)
	Close (as Rescheduled

)

Close

Loan Screen Reports

Active

Approved

Active

Closed (Written Off

)	Closed (Rescheduled)
	Close	Closed (Obligation Met) or Closed (Overpaid)

Active

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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

two

three main types of loan account for groups: a group loan

and

, a joint liability group (JLG) loan

. 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

and a Bulk JLG loan for a group.

Group 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 Banks provide loan

nationalized financial institutions provide loans to a group rather than to

member and as group need to repay the loan ex: SHGs)

About Loan Charges

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.

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members, for example, SHGs.

JLG (Joint Liability Group) loan account: A 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.

Versions Compared

Old Version 27

New Version Current

Key

About Loan Accounts

About Loan Charges

Prepay The Loan:

Loan Account Repayment