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Odoo Loan Management

As the name suggests, the loan management module is a blend of all important functionalities like to manage different type of loan, different calculation mode, borrowed & issued loans, loans with installment repayments with accounting entries, annuity repayment, possibilities for entering special repayments and many more options with it.

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Features of Loan Management System

Odoo Loan Management Basic

  • System helps you to create customized loan period
  • You can categorize type of loan and manage it
  • Loan types can be defined based on its calculation method(Flat and Reducing)
  • System allow you to compute installment based on amount, interest rate and period run time
  • System maintains all interest versions which company wants to define
  • It allows managing type of proof that company accepts and keep track
  • You can keep track of all installment received from a customer with accounting entry

Odoo Loan Management Advanced

(Advance contains features of basic with some new ones listed below)

  • Create Loans in Odoo using Unlimited Variables (Rate, Duration, Principal Amount, Setup fees, pre-payment fees)
  • Powerful Amortization Schedule Calculation Engine (Up to 2 decimal places accuracy)
  • Manage Loan applications and Approvals
  • Assign Loans to “Members”
  • Allows user to offer grace period for Principal , Interest and fees
  • Flexibility to generate repayment schedule based on Disbursed / Sanctioned amount
  • Repayment schedule can be set on Monthly, Quarterly, Half Yearly or Yearly basis
  • Provisions to capture Collateral against loan application
  • Provision to set late fees calculation method along with allowed grace period for repayment.

These are the Key Benefits of the Automated Loan Processing System

  • The reduction in the time involved in the processing of a loan.
  • Better customer satisfaction and several new product offerings to customers and thus creating a great impact in the minds of the customers.
  • Better document management and tracking of status online.
  • Ability to inquire in quicker time and improve the performance all throughout.
  • The minimization of the details required and removal of unwanted information requirements.
  • The minimization of the error involved.
  • Reduced time in loan processing and turnaround.
  • Reduced costs that would accrue due to the cost of paper, extra labor, storage, mailing and any necessary physical transportation.
  • Condensed processing time, reducing the approval process so closing rates are quicker, giving the organization an advantage over the competition.
  • Enhanced search and retrieval of important documents to increase productivity and allow employees to focus on more important tasks — like strengthening client relationships. This translates to repeat business.
  • Assured governance and compliance. Confidential information is safe and an established records management policy ensures regulatory and industry compliance.

Loan period interface

User can define loan periods i.e. 3 Months, 6 Months, 1 Yr , 2 Yr ….. etc as per company’s requirement. This corresponds to loan tenure in months.

Proof Types

This master allows user to list down different document names that can be accepted by the company as a proofs of identity irrespective of loan types. These documents will be linked to loan types to define mandatory / Non mandatory documents.

Collateral Types

Collateral Types master will list out all the collateral’s accepted by the company (irrespective of loan type) against loan application

Loan Component Configuration

This module offers flexibility to define loan fees components with sequence of repayment and grace period to be applied for each of the loan component. Sequence shall define what is to be reconciled first from the given loan components at the time of repayment.

Loan Application Form

Loan Re-Payment Basis

This module allows flexibility to generate re-payment schedule based on either Sanctions amount or Disbursed amount.

Loan Re-Payment Frequency

User can allow applicant to pay on Monthly, Quarterly, half Yearly and Yearly basis. According to the re-payment frequency payment schedule shall change.

Loan Disbursement in Tranches

Many a times applicant does not need full loan amount at a time. In case of home loans disbursements are made in tranches with small amount. This module helps to disburse loan amount in tranches with a validation that disburse amount should not be more than sanctioned amount.

Loan Installment Details

Loan installment details will give details of Principal, Interest and Fees amount against actual EMI, due EMI and outstanding EMI respectively.

Loan Collateral Details

In this tab user can list out all the collateral documents against each loan application