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The process of attaining a loan from an MFI begins with a loan application.
- An MFI will offer have some financial credit service offering or loan products that may be suitable for a range of customers.
- Potential customers (loan applicants) who are interested in praticular loan product will submit an application for a loan application (most likely through the help of a loan officer)
- This loan application will be reviewed. The loan application process can differ widely from MFI to MFI depending on their business process and the microfinance credit methodology they employ. But eventually a person or persons (credit committee) take a decision to approve the loan application.
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| Loan Application State | Action | Resultant Application Status |
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| State: ['Approved'] | Diburse Loan - Not possible to change amount
- Disbursement is for full amount
- Actual date of disbursement can be chosen
- No additonal information collected like:
- bank details
- Cheque number
- Voucher number etc
| State: ['Active'] - Date loan disbursed on captured, Application user that disbursed loan application captured
- 'Repayment schedule' updated e.g. if actual disbursement date differed from 'expected disbursement date'
- If loan contains charges due at disbursement then a transaction is created by system to mark these charges as paid.
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| State: ['Active'] | Undo Loan Disbursement | State: ['Approved'] - Useful if a mistake is made during data entry or a loan is wrongly disbursed by accident on the system
- effectively this just removes any 'state' information stored when moving from 'approved' to 'disbursed'
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Note: Support for multiple disbursements: Tranche loans or Top-up loans
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| Loan Application State | Action | Resultant Application Status |
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| State: ['Active'] | Undo Loan Disbursement | State: ['Approved'] - Useful if a mistake is made during data entry or a loan is wrongly disbursed by accident on the system
- effectively this just removes any 'state' information stored when moving from 'approved' to 'disbursed'
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| State: ['Active'] | Loan Repayment - Enter transaction amount and date
- Transaction can be in the past
- unless restricted by accounting
| State: ['Active'] - Repayment transaction entered capturing date and amount
- The full amount paid is broken into principal, interest, fees, penalites portions which is useful to downstream systems like 'accounting'
- 'Repayment schedule' is updated to reflect current situation after loan repayment transaction
- 'Loan summary' totals updated to reflect current situation after loan repayment transaction
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| State: ['Active'] | Waive Interest - Can opt to waive all outstanding interest or a portion of
| State: ['Active'] |
| | Close | State: ['Closed - Obligations met'] - Closes loan as obligations met if in suitable state
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| | Write off | State: ['Closed - Written off'] - Full write-off of outstanding balance of loan (principal + interest + fees + penalties)
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| | Close - (rescheduled) | State: ['Closed - Reschedule'] - Legacy state introduced to aid migrations from older mifos software to this platform.
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