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.

How does Mobiloan Calculate the Minimum Expenses Required on an given loan? | FAQ

Custom Informal Income Occupations

For more information on how to create standard informal occupations - which are a statutory requirement - select the link below.

How to add Custom Informal Occupations ? | FAQ

Import Bank Transactions

For more information on how to request a digital bank statement, select the link below.

How to Retrieve and Authorize Electronic Bank Statements in Mobiloan | FAQ

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.

Screenshot depicting a failed category requirement

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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.

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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.

The additional fields available in the disclosure.

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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:

1. Choose a category from the "Expense Category" dropdown.

2. Fill in the details for each expense as shown below.

3. Once you've added all your expenses, click "Insert Expenses" to include them in your affordability calculation.

Simply select "Insert Expenses" to sum up the expense categories and add the totals into the disclosure.

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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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