Optimize Your Lending Process with a Loan Management System
Overview
The Loan Management System in Odoo is a module designed to streamline and automate the processes involved in managing loans within an organization. It offers tools for tracking loan applications, setting loan terms, managing interest rates, scheduling repayments, and handling overdue payments. Additionally, the Loan Management System module provides a comprehensive solution for managing all aspects of loan administration.
This module allows organizations to define loan terms with flexibility, customized interest rates, repayment schedules, and payment methods according to specific business requirements. In addition to basic loan processing, the module is designed to handle more advanced functions like interest rate management, enabling dynamic adjustments based on market conditions or borrower profiles. The Loan Management System also provides a seamless way to schedule repayments, generating automatic reminders to ensure timely collections, while also monitoring overdue payments to reduce delinquencies.
Hot Features
◆ Loan Dashboard
◆ Loan Request Portal
◆ Portal view of Loan
◆ Accounting Configuration
◆ Loan Installment Creation
◆ Role-Based Approval & Updates
◆ Loan Rejection with Reasoning
◆ Invoice Creation on Approval
◆ Postponed Installments
◆ Extra Payments of Loan Principal
◆ Penalty & Foreclosure Charges
◆ Loan Accessibility From Contact
◆ Dynamic Rate Update
◆ Reminder of Installments
◆ Loan Closing Documentation
◆ View Progress of Loan
◆ Payment State Identification
◆ Navigate Back to Backend
Features
◆ Loan Management Dashboard with Role-Based Access Control.
◆ Differentiated Access for Users, Bankers, Managers.
◆ User can create loan request from the website.
◆ Manager can easily access the loan request and confirm the loan request.
◆ Create a loan record upon confirmation of the loan request by manager.
◆ View the loan record on the portal, showcasing all essential loan details.
◆ Easily navigate through all records using the Next and Previous buttons on the portal.
◆ Effortlessly navigate to the loan dashboard of a specific record by selecting the "Back to Edit Mode" option.
◆ Utilize the portal menu for Loan Records to effortlessly view and navigate through the list and individual record details on the website.
◆ Comprehensive Property Tax and Insurance Fee Configuration.
◆ Accounting Configuration for Loan Accounts. Identification of product based on type as property.
◆ Loan installments record generation on single click.
◆ Loan installments computation based on start date and number of installments.
◆ Fixed & Floating interest type for loan.
◆ Loan Rate Durations of Yearly, Monthly, Weekly & Daily.
◆ A Note section to add important details related to loan.
◆ Single click invoice creation for the installment record with insurance & tax charges.
◆ Open invoice on single click to see the invoice created for installment record.
◆ Detailed information page for Installments with description due date, pending principle, interest, total amount, amount due & paid on date.
◆ Easy to identify Principle To Pay, Remaining Amount & Total Amount Due on loan dashboard.
◆ Easy to identify Installement changes due to postponed payments.
◆ One factor approval & update of loan details only by Manager.
◆ One click invoice generation for installments that are due till the date.
◆ Invoice creation for down payment on loan approval by manager.
◆ Easy to Postpone the installment payment or do Extra Payments.
◆ Easy to identify the reason of postpone the Installement.
◆ Postponed loan installments for certain amount of Days & Months.
◆ Easy to reset the installment dates from certain date to re-adjust the installment payment date.
◆ Do extra payments based on Next due installments & Settling only the principle amount.
◆ Close loan by extra payments with remaining principal amount.
◆ Validation message while closing loan with pending principal amount if loan has pending payments.
◆ Easy to identify the loan taken and payments in Contacts.
◆ Easy access to Journal Entries, Invoices, Payments, Transactions, Interest Paid, Principle Paid, Tax Paid & Insurance records from loan dashboard itself.
◆ Reminder emails for the next due installment details.
◆ Loan closed email with PDF attachment of loan & installment details.
◆ Easily generate PDF & Excel reports of the loan details from loan dashboard.
◆ Easily generate Loan Declaration Letter on approval of loan.
◆ Easily identification of loan type & separate section for Loan related documents required.
◆ Easy access to Loan Rejection details from Rejection Page when loan is rejected.
◆ Loan related entered details will be non-editable once loan is disbursed.
◆ Loan rate can be updated if interest is set as Floating.
◆ Email notification for rate updates based on financial policies.
◆ Loan configuration with email reminder for upcoming installment.
◆ Easily differentiate Down Payment & Installment also identify payment state of installment.
◆ Role-Based Distribution of loan.
◆ Apply Penalty on late payments of installments of loan.
◆ Foreclose charges on closing of loan before the loan tenure.
◆ Auto generation documents like Acknowledge Letter, NOC, No Due & Loan closing certificate after loan is closed.
◆ Loan closed ribbon on record when loan is closed.
◆ Loan progress can be viewed in list view progress bar.
◆ Easily identify the payment state of each installment.
Loan Management Portal Flow
- User can request for loan from website Loan Report menu.
- Further user will see a Loan Request form asking some details.
- On clicking Submit will create a loan request record which further manager will review.
- Once the loan request is reviewed by manager and confirmed will create a loan record will all details.
- Loan record will be review my banker & banker need to add some details like Property, Tax, Down Payment and many more, it will letter approved my Manager.
- User can Preview the loan record in Portal view by clicking on Preview Loan button from loan record.
- Clicking on Preview button will open a portal view of that particular loan record with side panel showing total loan amount and View Details button that will show the PDF report of Loan Details.
- User can access the loan records from portal menu Loans followed with a list view of loan records, which further clicking on Loan Orders will show a portal view of that particular record.
- Further user can navigate to Next & Previous record of loan by clicking on navigation buttons on right side.
- User can also go back to loan dashboard in backend by clicking on Back to Edit Mode showing in a coloured panel on top.
- Further user will see the Pay button on clicking on it will add a Property product to cart and will redirect to checkout page from where user will do payment of that installment.
- Here if user has missed the installment then it will show the Pay button for that installment record once that installment is paid by user Pay button will be hidden.
Loan Management Backend Flow
- User will see Loan Dashboard App.
- Navigate to Settings >> Users & Companies >> Users & open user there under Access Rights >> Other, Loan App access rights with Banker & Manager dropdown.
- Navigate to Settings >> Loan Management here user will find all the configuration of Loans Accounts, Products & Bad Debt Accounts For Loans and loan installment reminder.
- Further clicking on Loan App user will see Properties menu clicking on it will display all the product.
- Opening the product there will be field Product Type there new selection Property.
- When user opens Loan App and click on New, record asking field data will be created.
- The state of loan will be in Draft and Compute Installment, Approve Loan, Reject Loan & Preview Loan buttons.
- NOTE: Approve Loan button will only be visible to user with Manager access rights.
- User can upload the Documents proofs from the Loan Document Proof menu.
- User can upload the documents already in drop-down of Name field & also user can add any other documents if needed.
- Which is further set in loan record's Document Proofs page.
- While Approving Loan if any required details is not set it will show a validation message for that details.
- The Installment record will have details related to Loan, Insurance & Tax that applies on that particular loan.
- Now when user with access rights of Manager Approves the loan, the record field data will turn readonly/ data cannot be changed except the Rate in case it is set to Floating and there is any changes in rate due to government guidelines.
- And the state of loan will be changed to Approved.
- In case there is some mistakes made or changes of details is needed the loan record can be Set To Draft.
- NOTE: The button Set To Draft will only be visible to user with access rights of Manager.
- Further user with access rights Manager & Banker will disburse the loan if the particular loan has a Down Payment amount it will generate a invoice & journal for it and user need to do payment.
- Also, the state will be changed to Disbursed, the smart button Invoices will be visible, mail with attachment of loan details will be sent to customer, attached loan details PDF in record & installment record for Down Payment will show the Payment state & a button from which user can view the invoice.
- Further clicking on the button against the installment records will create a invoice with loan payment amount of the particular loan record.
- Clicking on Journal Entries smart button will open a journal entries again the loan installment record with reference to loan name.
- Similarly clicking on Invoices smart button will open a Invoice created against the loan installment record with payment reference as installment sequence/ number.
- Similarly clicking on Payments smart button will open a Payments created against the loan record.
- Similarly clicking on Transaction smart button will open a Transaction created again the loan record.
- When user clicks on the navigation button at the end of record of installment it will create an Invoice with Property Insurance, Property Tax, Principle & Interest of that record.
- Once invoice is created user will see another button with book icon clicking on it wil open the invoice created for that particular installment record.
- If for some instance user miss any of the installment payment then 2% of the principle will be applied to payment of that particular installment with a validation message.
- When user will click on Get Loan Report user will see a pop-up asking to select either Generate PDF Report or Generate Excel Report.
- User can generate invoice of all the installment records that has due date till today.
- Here current date is 09/19/2024 so invoice for installment record with sequence 2 and due date as 09/01/2024 is created.
- In some interval of time user wants to postponed the installments due to any reason, user can click on Postponed installment followed by selection By Certain Amount of Days or By No. of Months also filling the Postponed Date & Reason, Finally click on Postponed will update the Due Date of installment record having due date after the one entered in Postponed Date.
- Also user can reset the Installment Due Date to original due date.
- User can see the changes done in Installment record from Installment Changes Page with record Sequence, Old Due Date & New Due Date.
- In some interval of time user wants to pay extra then on clicking Extra Payments user will see a pop-up asking Payment Type, Selecting Settle Next Due Installment will create a invoice for the installment record next due, Where as selecting Settle Only Principle will create invoice for only the Principle amount of the installment record next.
- User can update the Rate if the rate type is Floating.
- Click on Update Rate button appearing beside the rate field will open a wizard asking for Update The Rate, further clicked on Update will send a email with old and new rate changes to the customer and also update rate in the loan record.
- User see the mail sent to customer from Settings >> Technical >> Emails.
- Now lastly when user want's to Close the loan, User need to click on Extra Payments then simply tick the Close Loan checkbox, enter Amount To Pay and click Pay, Closed ribbon will appear in record also the state will be changed to Closed.
- Here if user is settling the loan before the loan tenure then Foreclosure charges will be applied to the pending principle.
- Also, all the necessary documents like Acknowledgment Letter, Closing Certificate, NOC Certificate, No Due Certificate and Loan Details are attached and sent into mail of Loan closing.
