Overview

This section guides you through setting up the various loan products your entity offers. You must define a loan agreement document for each loan product.

Path: Setup > Loan Related > Loan Products

Access: Access to this setup is restricted. Your administrator must grant access by setting the Setup > Loan Products security option on your role.

Note: Some entries may not display, depending on your legal entity's specific setup and country.

Available Calculation Methods

The following loan calculation methods can be configured per country:

Interest Calculation Method	Description	Documentation
Simple Interest	Interest is calculated monthly on the original principal amount	Simple Interest
Compound Interest	Interest is calculated monthly on the outstanding balance	Compound Interest
RSA NCA Short Term	RSA NCA Interest Calculation Method Short Term Credit Agreement	RSA Short Term
RSA NCA Unsecured	RSA NCA Interest Calculation Method Unsecured Credit Transaction	RSA Unsecured
Profit Rate	Interest is charged as a once-off percentage on the original principle amount	Proft Rate
Variable Charges	The user defines the fees and interest calculations	Variable Charges

For South Africa, initial loan products typically include:

• Short Term Fortnightly
• Short Term Monthly
• Short Term Monthly by Rule
• Short Term Weekly

Viewing Loan Products

The following columns provide an overview of your loan products:

• Description: The name or description of the Loan Product.
• Enabled: Indicates if the Loan Product is currently in use.
• No of Instalments: The initial number of installments for the loan product.
• Loan Amount: The initial value of the loan amount for the product.

Actions

You can Add, Edit, and Print loan products.

Add a New Loan Product

To add a new loan product, click the Add a New Loan Product button. You'll then configure the product based on its interest calculation method:

• Simple Interest Calculation Method:
  • Simple Interest: Basic information about this calculation method.
  • General: Set up the overall Loan Product details.
  • Interest and Fees: Configure interest rates and fees.
  • Users: View a list of users associated with this product, displayed alphabetically.
• Compound Interest Calculation Method:
  • Compound Interest: Basic information about this calculation method.
  • General: Set up the overall Loan Product details.
  • Interest and Fees: Configure interest rates and fees.
  • Users: View a list of users associated with this product, displayed alphabetically.
• Short Term Credit Transaction (RSA NCA Interest Calculation Method):
  • RSA NCA Interest Calculation Method: Basic information on this method.
  • General: Set up the overall Loan Product details.
  • Interest and Fees: Configure interest rates and fees.
  • Users: View a list of users associated with this product, displayed alphabetically.
• Unsecured Credit Transaction (RSA NCA Interest Calculation Method):
  • RSA NCA Interest Calculation Method: Basic information on this method.
  • General: Set up the overall Loan Product details.
  • Interest and Fees: Configure interest rates and fees.
  • Users: View a list of users associated with this product, displayed alphabetically.
• Profit Rate Interest Calculation Method:
  • Profit Rate (Country Specific): Basic information on this method.
  • General: Set up the overall Loan Product details.
  • Interest and Fees: Configure interest rates and fees.
  • Users: View a list of users associated with this product, displayed alphabetically.
• Variable Charges Calculation Method:
  • Variable Charges: Basic information on this method.
  • Variable Charges-button: Click this button to access the screen where you can set up the specific loan product items for variable charges.

Important: When setting up a new Loan Product, you are required to set up a corresponding Loan Agreement document for it.

Edit an Existing Loan Product

To edit an existing loan product, highlight the loan in the list and then click the Edit button. The screens for editing are the same as those for adding a new loan product, allowing you to modify:

• Simple Interest Calculation Method (if applicable)
• Compound Interest Calculation Method (if applicable)
• Short Term Credit Transaction on RSA Interest Calculation Method (if applicable)
• Unsecured Credit Transaction on RSA Interest Calculation Method (if applicable)
• Profit Rate Interest Calculation Method (if applicable)
• Variable Charges Calculation Method (if applicable)

Buttons

• Print: To print a list of the Loan Products, click this button.
• Back: Click to return to the previous page.