Loan Module
About the Loan Module
The Loan Module is used to capture loan information accurately and to assist you with managing loans effectively in your organisation.
The Loan Module allows for the following:
- A configurable risk engine containing the following loan calculators:
- Affordability
- Increase payments, and
- Shorter Loan Term
- Flexible loan management features allowing for
- Repayment holidays, and
- Rate and fee changes.
- Loan Reports
- An Employee Loan statement that can be printed on a monthly basis.
The Loan Module caters for the recording of the following Loans issued by the Company:
- Casual Loans (A low interest/interest free short-term loan),
- Small Personal Loans (Small loan as defined by employer),
- Medium Personal Loans (Medium loan as defined by employer),
- Large Personal Loans (Large loan as defined by employer),
- Study Loans (A loan granted to an employee to further his/her studies),
- Educational Loans (A loan granted to an employee to pay for the education of a dependant),
- Vehicle Loans (A loan granted to an employee to finance the purchase of a motor vehicle),
- Home Loans (A loan granted to an employee for the purchase of primary residence or the purchase of property for investment purposes) and
- General Loans (Other loans).
You are still able to use the regular Loans line.
The Loan Module Process
A step-by-step explanation of all aspects necessary for capturing loan information using the Loan Module follows.
Step 1: Company Parameters |
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1. Create a Loan Module type deduction line on the Deduction Definition Screen. | ||
2. Define Access Control by giving access rights to the operators who will be working with the Loan Module information. | ||
3. Access the Loan Control Screen and complete the Company Details Tab as well as the specific loan type tab(s) that will be accommodated. | ||
4. Define the Loan Description codes. | ||
5. Copy the Loan Module setup to another company | ||
Step 2: Employee Input |
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1. Use the Loan Calculator to calculate the maximum loan amount, the repayment amount and/or the effect of an additional payment or shorter loan period on the repayment amount. | ||
2. Enter the loan details on the Employee Loan Information Screen. | ||
3. Use the Loan Global Activation function to update interest rate changes. | ||
Step 3: Loan Module Reports |
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1. Loan Statement Report. | ||
2. Loan Report. | ||
3. Company Totals. |
Step 1: Company Parameters
Certain company specific parameters need to be defined before input can be done for individual employees, before the loan calculations can be performed and before the necessary Loan Module reports can be printed, namely:
- Creating a deduction line with the Type of Deduction: Loan Module,
- Defining Access Control to allow the responsible operator to enter loan information,
- Entering details on the Loan Control Screen, and
- Ensuring that Loan Descriptions fields have been defined.
Step 2: Employee Input
After the company parameters have been defined, you are ready to proceed with input on employee level.
Employee input can be categorised into the following areas, namely:
- Making use of the Loan Calculator to calculate the maximum loan amount that an employee qualifies for, the instalment amount, the effect that an extra payment or shorter loan period will have on the interest and instalment amount.
- Entering the loan information on the Employee’s Loan Agreement Screen.
- Global Activation of a change in the interest rate.
NOTE:
To display the result of the requested calculation, click on the Calculator button.
The calculation result can be printed by clicking on the Print button in the top left-hand corner of the screen.
Step 3 – Loan Module Reports
After the company parameters have been defined and all employee input has been completed, you can print the necessary Loan Module reports.
These reports contain loan reconciliation information and opens up in a preview screen, allowing you to select the pages you want to print.
Main Menu > Payroll > Loan Module > Reports
The following reports are Standard Loan Reports:
- Loan Statement Report,
- Loan Report and
- Company Totals