Configuring and Disbursing of Top-Up Loan

A top-up loan allows borrower to take a loan amount on top of his/her existing loan, this loan is offered only after a certain number of repayments is made on existing loan amount as this gives a fair idea about the borrower’s repayment track record. Here the current loan will be paid-off using the balance of top-up loan once the loan is disbursed.

Example: 

Assume ‘Bob’ has taken a loan of 10,000$ and say he had made a repayment of 5000$, now he wants to top-up his loan by 10,000$. Once the top-up loan is approved his existing loan amount of 5000$ will be paid-off using balance of  top-up loan and a new loan of amount 15000$ is disbursed. This new loan amount is the combination 5000$ (Paid-off amount) and 10000$ (New top-up loan).

How to configure Top-Up Loan?

1. Navigate to Admin>> Products>> Loan Products>> Create Loan Product, define the required fields and if the loan product supports top-up loans then select “is allowed to be used for providing TopUp Loans?” under Settings field.

      

How to Disburse Top-Up Loan?

1. Select a client who has taken a loan and had made some repayments.
   
   
   
2. If the borrower wants to top-up his loan then click on . Next select a loan product that is configured for Top-Up loan.
   
   
   
3. Select "Is Topup Loan"  and  pick the appropriate loan account from "Choose loan to close" drop down that has to be closed (paid-off).
   
   
   
4. Click 
   
   
5. Next "Approve" and "Disburse" the loan.
   
   
   
6. Now in client's page you can see that the loan earlier has been paid-off and a new Top-Up loan is disbursed.
   
   
   
7. Click on the loan to view loan 'Summary', 'Transactions', 'Repayment Schedule'.
   
   
   
8. This is Transaction page.