Tranche loan process

Owned by Sangamesh Nadagoudar
Last updated: Jun 27, 2019 by Massabe Lydiane

Tranche Loans are loans which are disbursed in multiple disbursements. An example of Tranche Loan is Home Loans which are disbursed in multiple steps as per the progress in completion of the house/apartment being purchased or constructed.

Example: Completion of the foundation of building – 30% of approved loan amount is disbursed

                Completion of the ground floor walls – 30% of approved loan amount is disbursed

                Completion of the roof – 30% of approved loan amount is disbursed

                Completion of plastering – remaining 10% of approved loan amount

Typically, the loan amount applied for, approved loan amount and total disbursed loan amounts can be different. For example, the client may apply for a loan of 125,000, the approved amount may be 110,000 and the actual disbursement may be 100,000 


On this page:

Beginning at the main screen, select Admin, then Products from the drop-down menu. This will launch the Products menu.

Select Loan Products.   

 

Create Loan Product 

Provide all the required input for the Loan Product Fields, also refer link:- Loan Products.

Go to:- Loan Tranche Details.



Provide required details to create tranche product:- 
1 - Checking the check box will enable Multiple disbursals. 
2 - Provide the maximum number of disbursements allowed for a loan account. Example: 5
3 - Provide maximum outstanding loan account balance at a point in time. Example: 100000

Then click on Submit button once you are done with providing all the required fields. 

Create Loan account 

Provide all the required input for the Loan Account Fields, also refer link:- How to Create a Loan Account Application

Go to:- Loan Tranche Details

1 - Maximum allowed outstanding balance: Provide the maximum allowed amount. 

2 - +: Click on plus button to define the parameters. Here 3, 4 and 5 rows get added. On clicking on the plus button again 6, 7 and 8 rows get created. 

3 - Date: Provide the tranche disbursement date. Example: Here the 1st expected tranche disbursement date is on 01 January 2015. 

4 - Principal: Provide principal amount. Example: Here the 1st tranche loan amount is 20,000.

5 - X: Click on x (remove) button to remove the row. 

6,7 and 8: Is the 2nd tranche details in the example. 

Then click on Submit button 

Approve loan account  

1 - Add tranche: You could also add new tranche at the approve loan account page with not exceeding set limits. 

2 - Edit tranche: You could also edit/remove tranche at the approve loan account page with not exceeding set limits.  

Loan in active status 

You could Add new tranche or Delete existing tranche at the loan in active status. 


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