Introduction
Loans in microfinance are typically given out for:
- Micro-enterprise loans
- Agricultural loans
- Housing Improvement loans
Loan Application Process
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 (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.
In Mifosx, on the platform we support the following loan application process:
| Loan Application State | Action | Resultant Application Status |
|---|---|---|
| Begining | Submit Loan Application | State: ['Submitted and Pending Approval']
|
| State: ['Submitted and Pending Approval'] | Modify Loan Application | State: ['Submitted and Pending Approval']
|
| Add/Update/Delete Guarantors | State: ['Submitted and Pending Approval'] | |
| Add/Update/Delete Case notes | State: ['Submitted and Pending Approval'] | |
| Delete Loan Application | State: [] Completely removes the loan application from the information system | |
| Approve Loan Application | State: ['Approved'] | |
State: ['Approved']
| Undo Approval | State: ['Submitted and Pending Approval']
|