Lending
Loan products, public applications, borrower records, underwriting, approvals, booking, amortization, repayments, penalties, collections, and portfolio reports.
Purpose and What Problem This Solves
The Lending module standardizes the loan lifecycle from product setup and borrower application through underwriting, booking, servicing, repayment, and collections. It helps protect borrowers and the business by making disclosures, consent, audit trails, and repayment allocation visible.
Who normally uses this module
What You Can Do Here
- Define loan products, rates, fees, terms, and eligibility rules.
- Accept public applications with consent and disclosure snapshots.
- Move applications through underwriting, approval, rejection, or booking stages.
- Generate versioned amortization schedules and post repayments by component.
- Track collections activity and portfolio health reports.
Core Concepts and Terms
Learn these words first. Most user mistakes happen when a beginner opens a form without knowing what the record represents.
Loan product
The configured offer defining amount ranges, rates, fees, terms, and disclosure behavior.
Application
The borrower request before a loan account is booked.
Underwriting
Credit review of borrower data, documents, risk, affordability, and policy requirements.
Amortization schedule
The dated repayment plan splitting principal, interest, fees, penalties, and balance.
Payment allocation
The rule-based split of a payment across due components.
Collections case
A structured follow-up record for overdue accounts and borrower contact history.
Beginner Quick Start
Use this first-run path in a training database or with a supervised account before handling live records.
- Configure loan products and disclosure text before opening the public portal.
- Test the loan calculator and application form, including consent capture.
- Create a sample application and process it through review, approval, and booking.
- Post a test repayment and verify allocation against the schedule.
- Review portfolio and collections reports to understand operating controls.
Standard Operating Procedures
These SOPs describe the routine operating pattern. Your company policy may add approvals, attachments, or segregation-of-duties controls.
Process a loan application
- Review borrower identity, contact information, documents, requested amount, and consent snapshot.
- Check product eligibility, affordability, risk notes, and required disclosures.
- Move the application to underwriting or request missing information.
- Record approval, rejection, or booking decision with reasons.
Book an approved loan
- Confirm final approved principal, term, rate, fees, and first due date.
- Generate the amortization schedule and review totals with the borrower disclosure.
- Book the loan account only after approvals and documents are complete.
- Store schedule version and audit trail for future servicing.
Post a repayment
- Locate the loan account and confirm payer, amount, payment date, and reference.
- Apply the payment using the module allocation rules.
- Review how the payment split across principal, interest, fees, and penalties.
- Issue receipt or confirmation and verify the next due status.
Industry Notes and Good Practice
- Lending operations need both speed and fairness. A fast approval process still needs clear disclosures and consent.
- Do not change historical schedules silently. Use versioned schedules or documented adjustments.
- Collections activity should be factual, respectful, and policy-compliant. Keep contact history complete.
- For Philippine compliance, treat Truth in Lending and Data Privacy consent evidence as first-class records.
Controls, Data Quality, and Review Checklist
Use this checklist during onboarding, monthly review, and process audits.
- Every loan product has approved terms, disclosures, fees, and status.
- Applications are not booked without required documents, approvals, and consent evidence.
- Payments have references and allocation details.
- Collections notes are dated, factual, and free of prohibited language.
Related ERPat areas
FAQ and Troubleshooting
Why can an application not be booked?Check approval status, missing borrower data, product configuration, consent, documents, and schedule generation.
Can I edit a repayment after posting?Follow reversal or correction procedure. Avoid silent edits because allocations and balances are audit-sensitive.
What is a disclosure snapshot?It is the saved borrower-facing disclosure content at the time of application or approval.
What should beginners learn first?Product terms, application stages, amortization basics, payment allocation, and collections policy.