Loan Ledger
Welcome to The Loan Ledger
The Loan Ledger builds upon the functionality of the Client Ledger, providing a dedicated space for managing loan-related transactions and records. It offers the following key capabilities:
Creating Manual Transactions
Process receipts or refunds for loans directly within the Loan Ledger.
Ensure accurate financial tracking with manual entries when needed.
Viewing All Transactions
Access a comprehensive record of all loan-related activity.
View both manual transactions and system-generated records for full transparency.
Generating Settlement Letters
Easily create and print settlement letters to keep clients informed about outstanding balances and repayment requirements.
Updating Loan Statuses
Track loan progress by updating statuses directly within the Loan Ledger.
Maintain an organized and up-to-date loan portfolio.
Tracking Late Settlement Fees
If this loan qualifies for the accrual of late settlement fees - you can easily track the accrued late fees here.
By leveraging the Loan Ledger, businesses can ensure better financial oversight, improve client communication, and streamline loan management processes.
Screen Layout and Functionality
Loan Summary: A clear summary table displays the client's current balance, full-term balance, and account status at a glance.
Transaction History: A dedicated table conveniently lists all transactions that affect the loan balance, including both manual entries and system-generated records. This comprehensive overview provides a clear picture of the loan's activity.
Action Panel: Located above the transaction table, this panel offers various functionalities, which will be documented in detail later in this guide.
New Transaction Button: This primary button allows you to create a manual receipt or refund that directly impacts the loan's balance.
Loan Ledger Options
To the top right of the loan transactions table - you will notie a panel of ledger options -
- Schedule
The repayment schedule outlines the scheduled instalments against the receipted instalments along with a detailed loan amortization table, as seen in the screenshot below.
Balance
Need to settle your loan before the next payment date? No problem! The Loan Ledger allows you to do this anytime during your pay period.
Close Loan
This will present the the following screen (shown below) which allows you to select a status from the loan status drop-down menu as well as the reason for updating the status.
Various Account Statuses
Active - Loan is active on credit bureau: This status indicates a current loan with ongoing payments.
Settled/Paid Up: Use this option when the loan has been fully repaid and the account is closed. NCR regulations require lenders to report loan settlements to credit bureaus within 1 business day.
Handed Over : Select this status when the account is handed over to external debt collectors. NCR regulations mandate lenders provide debtors with a written notice before and after handing over the account.
Written Off: This status signifies the lender has ceased collection efforts due to the unlikelihood of repayment. NCR regulations require lenders to report written-off accounts to credit bureaus within 30 business days.
Deceased: Use this status only upon confirmation of the borrower's death. NCR regulations do not explicitly address deceased borrowers, but responsible credit providers should handle such situations with sensitivity.
You cannot set a loan to handed over or written off status for a loan that has not passed 92 days after the last loan receipt.
The Written-off status does not automatically remove the debt from the borrower's credit report.
Editing Loan Transactions
To begin editing a Transaction in the Loan Ledger
Select the Transaction: Locate the transaction you want to edit or delete within Mobiloan.
Edit Transaction Screen: Clicking on the transaction will open the "Edit Transaction Screen." This screen allows you to modify details like date, description, amount, or category selection.
Deleting Transactions: If you need to completely remove the transaction, you'll also find a delete option within the Edit Transaction Screen.
Important Note: These editing and deletion functionalities are only available before the transaction is reconciled at the day's end. Once a transaction is reconciled, modifications are no longer possible.
Editing Debit Order Transactions in the Loan Ledger
By selecting a Promissory ID from the table, Mobiloan will present the Allps Promissory Screen
By selecting a Transaction that has been reconciled, you will be presented with the following options (The screenshot below provides an example of the Edit Transaction Screen for a debit order transaction (specific details may vary depending on the transaction type).)
By selecting an unreconciled transaction , you will be presented with the following options
Adding Late Settlement Fees
Depending on whether the current loan qualifies for late fee accrual—as defined in the Loan Product Setup—a "Late Settlement" button will appear. This button becomes visible only if the loan is overdue and pending late charges are eligible to be added to the loan’s balance.
The key takeaway is that late settlement fees are accrued throughout the month and can be applied to the loan at month-end, allowing for accurate and timely adjustments.
Late Settlement: Step-by-Step Process
Click the "Late Settlement" button to open the Late Costs Monitor.
Review the breakdown of any existing and pending late fees.
Click "Save / Update" to apply the pending late settlement charges to the loan balance.
If no fees are currently due, Mobiloan will display a warning to indicate that no action is required.
Once the pending fees are applied, Mobiloan will automatically create a new scheduled installment for the next payment cycle, which includes:
Late Interest
Service Fees
These components are integrated into the updated loan schedule to reflect the overdue amounts.
Understanding Late Cost Categories
Existing Late Costs: Displays fees that have already been applied to the loan. These include detailed breakdowns such as:
Days overdue
Penalty charges
VAT This ensures full transparency on previously accrued charges.
Pending Late Costs: Shows late fees that have been calculated but not yet posted to the loan ledger. These are fully itemized and may include:
Deferred Capital – Outstanding principal overdue
Late Interest – Charges accrued due to overdue balances
Penalty Fees – One-time fees for delayed payments
Service Fees – Ongoing fees for managing overdue accounts
VAT – Tax on the total late charges
Handling Late Fees Within Debit Order Mandates
In cases where a promissory debit order mandate has already been defined, it may not be practical to simply add an additional installment to accommodate newly accrued late fees, as the total amount of the mandate is fixed.
If the outstanding late fees are substantial, we recommend creating a new debit order mandate - into a new repayment plan that can be incorporated into a fresh mandate.
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