Category Setup
This step-by-step guide walks you through the Branch setup process.
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This step-by-step guide walks you through the Branch setup process.
Last updated
Was this helpful?
The Client Category Setup enables users to define lending parameters specific to each category’s requirements.
Key settings include Client Type, Age Limits, Affordability Limits, Contact, References, Address, and Employment Requirements.
Proper categorization ensures efficient loan processing, tailored financial products, and compliance with lending policies.
To begin, either select an existing category from the table or click the "+" icon to create a new branch
To create a new client category, the user must complete the following fields:
Client Type (Predefined client categories to help you determine the new category)
Category Name (A unique identifier for this client segment).
Age Limit Parameters (Minimum and maximum age allowed for this category).
Each client category can be configured to use a preferred credit bureau for credit inquiries. Mobiloan supports XDS and Experian.
Approved Dispute Reasons: Define the acceptable reasons an originator can select when disputing a false credit check.
Enquiry Requirement by Loan Frequency: Specify whether a new enquiry is required for loan frequencies (New, Dormant, Repeat, Top-up).
Enquiry Validity Period: Set the number of days a credit enquiry remains valid. Once expired, a new enquiry will be required.
Block Clients Under Debt Review: If enabled, the loan application process will be blocked for clients under debt review.
This step involves defining the parameters for each affordability component of this category; nameley, each affordability component must have a maximum and minimum limit, taking into account Mobiloan’s automatic rounding and other enforcement rules.
Salary Income Component
Bank Income Component
Informal Income
Expenses Component
Once you have configured the limits of the various affordability components (as shown in the above screenshot), there are additional general affordability enforcements worth exploring for each category.
Minimum Expense-to-Income Ratio: Defines the minimum percentage of expenses relative to income before approving a loan. Example:
If the required ratio is 40%, and a client earns R20,000 but has expenses of only R6,000 (30% ratio), the loan will be blocked despite a surplus.
Affordability Validity Period: Determines how long a client's affordability assessment remains valid, typically aligned with their payment cycle.
Affordability User Access: Restrict who can view affordability assessments:
Any User
Branch Users Only
Branch Loan Evaluators Only
Use salary income
If selected, the client's salary income will be used in the affordability calculation.
Use informal income
if selected, the client's informal income will be permitted in the affordability calculation.
Informal income is that income that cannot necessarily be retrieved from a bank statement Example: a client that is paid in cash
Categorize affordability
Selecting this will require the user to complete a detailed affordability for each client.
Affordability disclosure
This will permit users to perform an affordability disclosure for clients whose expenses do not meet the NCR minimums.
Allow bureau expense adjustments
This will allow allowed the user to modify the client's expenses retrieved by the credit report, such as the total CPA and NLR accounts expense.
Reset income on each loan
Ticking this option will require the user to input the client's income for every loan taken out by the client.
Remove disclosure when not required
Mobiloan will deduct the loan instalment from the affordability surplus
Mobiloan will then consider the minimum bank reserve and the minimum expenses required for the client and determine whether the disclosure is still necessary or not.
Reset expenses on each loan
This option will require the user to specify the clients expenses on each loan taken out by a client.
Bank income for maximum instalment
If selected, the maximum allowable loan instalment calculation will be based on the total bank income only and not include any other income.
Allow bank income greater than salary income
Allows for inputting a value larger than the salary income in the Bank Income field
Auto include active instalments in affordability
Includes any outstanding balance / instalment amount automatically in the Bureau Accounts Expense field.
Specify the required contact details for clients during loan origination. Options include:
Cellphone Number (Default Requirement)
Home Phone (Optional Requirement)
Email Address (Optional Requirement)
Define the OTP validation rules for loan and receipt transactions:
Not Required
Only When Changed
Checked with Every Loan/Receipt
In this step, the user determines the address details required during loan origination.
None
Optional
Required
Enable or disable the following options:
Map Location: Requires the client to pin their address.
Neighbor’s Name: Captures the name of a nearby neighbor.
Closest School & Shop: Records the nearest school and shop to the client's residence.
Owner/Tenant Status: Specifies whether the client owns or rents their home.
Rural Directions: Requires detailed instructions for reaching the client's home.
Define the references required for the client category:
Contact Reference Requirement
Beneficiary Reference Requirement (e.g., for insurance payouts)
Reference ID Number Requirement
Reference Date of Birth Requirement
Minimum Number of References Required
If the client type is Worker or Self-Employed, employment requirements must be configured. This step is skipped for Grant Recipients, as their employer is fixed (e.g., SASSA).
Specify if the following employment details are required:
Employee Code
Occupation
Employment Branch
Department
Supervisor
Work Phone
For client groups with a single employer, such as SASSA grant recipients, a default employer can be assigned by selecting an option in the Fixed Employer field.
If you wish to add an employer to the drop-down menu that appears under this field, simply select the "Employers" option at the btom of the screen to add/edit employers.
Configure loan origination preferences, restrictions, and debit order splitting rules.
Set the limits for new loans based on the following:
Daily Client Branch Loan Limit (Loans allowed per day per branch)
Daily Client Category Loan Limit (Loans allowed per day per category)
Maximum Overdue Instalment Count (Prevents new loans if overdue instalments exceed this limit)
Maximum Active Loan Count (Blocks new loans if active loans exceed this limit)
Account Verification Service (AVS-R) Frequency:
Once per bank account
Once per bank account and dormant loan
Upon every loan
None
Digital Bank Statement Requirement:
Required
Optional
None
Allows repayment splitting into two mandates if the instalment exceeds a set percentage of the client’s bank income (20%-90%).
For clients where digital bank statement uploading is enabled, certain optional actions can be configured based on the client's category. These actions enhance the value and reliability of uploaded data, specifically for affordability and fraud-related analysis.
Categorize Transactions for Affordability Analysis When enabled for the client’s category, this option automatically organizes uploaded transactions into standardized categories such as income, expenses, and debt. This categorization improves the alignment of bank statement data with affordability models, supporting more accurate financial assessments.
Perform Statement Fraud Analysis Available only for applicable client categories, this feature evaluates uploaded bank statements against predefined fraud detection rules. These rules help identify signs of tampering, duplication, or other suspicious patterns. Any irregularities are flagged for review, reinforcing data integrity and supporting secure decision-making.
AVS-R Requirement and Collection Exception Period
When the AVS-R (Account Verification Service - Real-time) rule is set to "Required once per bank account or any dormant loan," a new collection exception period must be established. This period checks if a successful collection has occurred on the same bank account within a specified timeframe. If such a collection is found, the AVS-R verification is not required again.
This setting only pertains to client types which are grant recipients and have SASSA as their fixed employer.
As mentioned previously, the SASSA dates are subject to change and thus it is only good practise to set a default tracking rule in order to ensure that collection is done or at least followed up.
By selecting the dropdown, the user may set SASSA tracking rules to either:
First to Last Payout Day
Tracks debits from the first payout day to the last payout day in the period. This is the default earliest payout day.
Non-disputable with Full Period Tracking
Tracks debits for the full period, regardless of whether or not the grant recipient has received any payouts.
Non-disputable with Shortened Tracking
Tracks debits for a shortened period, typically starting from the first payout day and ending on the date the grant recipient's grant is due to expire.
Grant Category Payout Day Only
Tracks debits only on the grant recipient's grant category payout day.
Define the authorized options for the new client category. Any unchecked box means that the client category will not be authorized for that area.
Authorized Loan Purposes
Authorized Loan Repayment Methods
Authorized Loan Payout Methods
Authorized Agent Commission Rules
Authorized Branches
Authorized Loan Products
Authorized Document Types
Once all steps are completed, review the configuration to ensure all necessary requirements are set correctly. This ensures smooth loan processing and compliance with company policies.
✅ You have successfully set up a new client category in Mobiloan! 🎉
