Tips to Configure: Loan Accounts

General Set Up

partner_borrower_id

Your ID for a specific borrower/end user. Call this ID so the system knows which user this loan is for.

partner_lender_id

The Lender ID of the partner who is funding this particular loan account.

partner_product_id

The product ID that is associated with this loan account - this will depend upon what type of loan is being issued (one time loan, credit line, etc.)

Partner_loan_id

Your internal ID associated to this specific loan account

Payment Due Policies

Late_fee_grace_period

The value for the number of days past due (DPD) before late fee charges kick in Sometimes you don't want your borrower to face an immediate penalty, so you give them a grace period. Automatic account status changes or any late fees will not be triggered until the end of the grace period.

An Example: A borrower has taken a loan, and his EMI due date is on the 5th of every month This loan charges a late fee of INR 10 per day. If you set the Late_fee_grace_period as “5” The borrower will only start to incur the late fee penalty of INR 10 per day starting on the 11th of the month, even though his payment was already late on the 6th.

Interest Policies

Loan_interest_rate

The value for the rate of interest you will be charging the borrower for this specific loan.

If left blank this field will take the default value that has been set at a Product level. If you would like to set the rate of interest as 15%, simply input the value 15 in this field

Fee Policies

processing_fee

The value of the processing fee you would like to charge for this specific loan account. If left blank, the system will take the value set during product configuration as the default

origination_fee

The value of the origination fee you would like to charge for this specific loan account

late_fee

The value of the late fee that you will charge the borrower on a daily basis once the grace period has ended.

If left blank this field will take the default value that has been set at a Product level. If you would

late_fee_cap

The max amount of late fees that can be charged for this product.

If left blank this field will take the default value that has been set at a Product level.

Example:

• If late_fee is set as 10

• The late_fee_frequency is set as daily

• And the late_fee_cap is set as 100

• Then late fees will be generated for 10 consecutive periods (days) before reaching the limit of INR 100.

Loan Policies (valid only for loan products)

loan_principal_amount

The principal amount or total value of the loan.

loan_disbursement_amount

The amount that is actually disbursed or transferred to the borrower. Often this value may be the same as the Loan_principal_amount, but in some cases a processing fee is deducted from the principal before disbursal.

An Example: A borrower requests a loan of INR 10,000 This loan charges a processing fee of INR 250 on the principal amount (deducted pre-disbursal) In this case, the value for the Loan_principal_amount = 10,000 And the value for the Loan_disbursement_amount = 9,750

Credit Line Policies (only valid for credit line type)

credit_limit

The value for the credit limit being assigned to this specific account

minimum_payment_percentage

This field decides what percentage of the outstanding balance has to be repaid on the due date to avoid incurring any fees.

If the customer has to pay the full instalment amount in order to avoid incurring fees then simply input the value as 100 - indicating 100% of the outstanding amount is due

If left blank this field will take the default value that has been set at a Product level.

annual_fee

The value of the annual fee you would like to charge for this specific loan account

monthly_fee

The value of the monthly fee you would like to charge for this specific loan account