Step 3 - Affordability
Affordability Assessment
In this step, you will need to input the client’s income and declared expenses. The system’s category settings, including the default parameters defined in the Category Setup, will automatically come into play and prompt the user if there are any affordability blockers. This feature is designed to greatly assist with the assessment process.
Simply fill in the applicable income and expense fields (shown below)
Field Name
Description
Income Source
Specifies the type of income, such as salary, informal income, or both.
Monthly Gross Income
The total income earned before any deductions.
Statutory Deductions
The total amount deducted from the salary as per statutory regulations (e.g., taxes, insurance).
Calculated Net Income
The net income after statutory deductions are applied.
Informal Work Type
Specifies the type of informal work if applicable.
Informal Income
The amount earned from informal work.
Bank Account Income
The total income deposited into a bank account.
Notes
A section to add optional comments related to affordability.
Living Expenses - Category Req
The minimum required expenses according to the category setup.
Other Account Expense
Any additional account expenses not covered in the primary living expense category.
Bureau Account Expense
CPA Monthly Instalments pulled directly from the credit report.
Minimum Required Expense
Mobiloan requires a specifically calculated value, which represents either the NCR Minimum Required Expense or the Category Required Expense. If this requirement is not met, an affordability disclosure is triggered. In such cases, a contract is generated on behalf of the client, confirming their consent to proceed despite not meeting the minimum required amount. The client must then provide detailed expense breakdowns to justify affordability.
For more details on how this calculation works, click the link below.
Custom Informal Income Occupations
For more information on how to create standard informal occupations - which are a statutory requirement - select the link below.
Import Bank Transactions
To import electronic bank statements into Mobiloan, navigate to the "Import Bank Transactions" option.
This allows you to pull in transaction data directly from the client’s bank account, streamlining financial reconciliation and loan management.
For more information on obtaing and authorizing a digital bank statement - select the link below
Once you have entered the client’s expenses, click "Calculate" to proceed. Mobiloan will assess affordability based on pre-defined limits assigned to the client's category, which was configured during the Category Setup process.
After calculation, the results will be displayed in a detailed breakdown on the next screen. This will provide insights into whether the client meets the affordability criteria required for loan approval.
If the affordability requirements are not met, Mobiloan will help identify the key factors contributing to the shortfall. By analyzing this data, you can take corrective actions—such as adjusting expenses, modifying loan terms, or improving financial eligibility—potentially allowing the client to qualify for the loan.
Affordability Tools
Select the secondary options button denoted by the '
' icon to make use of additional tools, documented in the page link below.
Average Income Calculator
This handy Average Income Calculator is accessible through the "Secondary Options" button in the bottom-right corner.
Detailed Expenses
Selecting this option will display additional input fields instead of a single expense input field, as shown in the screenshot below.
To switch back, simply select "Use Single Expenses", which toggles as you change the option.
Expense Calculator
This tool lets you enter multiple expenses for the same category, automatically calculates the total for each category, and factors it into your affordability assessment. It also saves your entries for future reference.
Getting started is simple:
Choose a category from the "Expense Category" dropdown.
Fill in the details for each expense as shown below.
Once you've added all your expenses, click "Insert Expenses" to include them in your affordability calculation.
Category Limits
Selecting this option will display the pre-defined affordability limits for the client’s category, which were initially configured by your super user during the Mobiloan onboarding process.
This is a useful reference when you're uncertain about the minimum or maximum attributes, or if you're having trouble meeting a target and the system keeps blocking your progress.
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