Lending to members ยท Lesson 11 of 15

Arrears, guarantees and write-off

Peter's loan is behind. The loan classification on Home shows it by days past due, a manager calls Joseph's guarantee and recovers 100,000 from Joseph's savings, Neema approves the recovery, and the lesson shows when Write off opens.

About 15 minutes

Key ideas

1

See late loans on Home

On Home, the Loan portfolio classification groups loans by days past due and shows the provision each group needs: money set aside in case those loans aren't repaid. In our example, Peter's loan shows there because it is behind.

2

Call the guarantee

Open the late loan's Security tab to see who guarantees it. In our example, Joseph guarantees Peter's loan. A manager chooses Call and confirms: Joseph's pledged savings become recoverable. Calling doesn't move any money yet.

3

Recover through a checker

Choose Recover, then fill in Recover from the guarantor: the Amount to recover, the Branch till and a Reference, and choose Recover from savings. In our example, 100,000 from Joseph's savings through the Head Office till. It goes to a checker first. Once Neema approves it, the money moves from Joseph's savings onto Peter's loan.

4

Liability and write-off

Joseph stays liable for his pledge after the recovery. If the rest of the loan can't be recovered, Write off opens once the loan passes your SACCOS's policy. In the video it is only pointed at, not pressed.

Practice

Try it in your training organization

  1. 1. On Home, find the Loan portfolio classification and the group holding the training loan in arrears. Read its days past due and the provision it needs.
  2. 2. Open that loan and its Security tab, and find the guarantor and their pledge.
  3. 3. Choose Call on the guarantor's row and confirm.
  4. 4. Choose Recover. Enter an Amount to recover, for example 100,000, pick the Head Office till as the Branch till, add a Reference and choose Recover from savings.
  5. 5. Sign in as a different manager, open Approvals and approve the recovery. Back on the loan, check that the money has moved onto it.
  6. 6. Find Write off on the loan without pressing it, and see whether it is open yet under your policy.

Check yourself

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