Workflow
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1
Open the product list
Open Loan Products (under Operations in a SACCOS). Owners and admins choose the + button (Create loan product); branch managers can read products but not change them.
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2
Details and interest
Under Product details enter the Product name, Product code, Currency and Description. Under Interest set the Interest rate (%), Interest method (Flat, Declining balance or Reducing balance) and Interest period. A flat-rate product shows the warning Flat interest does not meet the reducing-balance rule.
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3
Term, amounts and repayment
Under Term and amount limits set the minimum, default and maximum term in months and the Minimum amount and Maximum amount. Under Repayment choose the Repayment frequency, from Daily to Bullet.
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4
Fees and service add-ons
Under Fees & service add-ons choose Add fee or add-on. Give the Name, the Calculation (Fixed or Percentage), the Type (Fee or Service add-on) and when it is Billed (Once or Every month). Tick On every loan, or leave it for the officer to pick per loan, and choose whether one-time charges come off the payout or are added on top. Tax is switched on under Settings → Loan Defaults.
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5
Late payment and recovery
Under Late payment policy set the Penalty type, Penalty value and Grace period (days), and Top up while up to (days) behind. Add Debt recovery charges only where your policy allows them.
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6
Requirements and availability
Under Requirements and availability tick Collateral required, Guarantor required or Field assessment required, and tick every document the loan needs under Required documents. Keep Product is active ticked to offer it, then choose Save product.
