Introduction and Screen Layout
Category Setup - Affordability Limitations
Last updated
Category Setup - Affordability Limitations
Last updated
To ensure loans are manageable for clients in this category, follow these steps to set borrowing limits based on their affordability:
Evaluate Surplus Income: Determine the client's extra income after covering all essential expenses. This amount is crucial in assessing their capability to repay a loan.
Calculate Minimum Expense-to-Income Ratio: Establish a healthy ratio between the client's loan payment and their income. This ratio helps in ensuring that the loan does not overburden the client financially.
Enable Rounding: Turn on the income rounding feature to round down all income amounts to a specified value (e.g., nearest cent, R1, R10, R50, R100). This step ensures consistent calculations and helps in simplifying the assessment process.
📘 Note: Clients who do not meet these set limits are ineligible to proceed with their loan application, ensuring that loans are only approved for those who can afford them.
