Processing Loan Repayments
- Updated On 22 Nov 2019
- 6 Minutes To Read
Enter a single repayment
To enter a single repayment to a client or group's loan account, open the client's profile > click on the appropriate loan account > click Enter Repayment > enter the repayment's details > click on Apply Repayment.
By default, when entering a repayment the transaction's date will be the current date.
To backdate a repayment, you need to enter the amount > check the Backdate box > enter the date > Apply Repayment.
When backdating a repayment you need to make sure that there are no repayments already entered after this date.
Future Dated Repayments
Loan accounts using the Fixed Flat method don't depend on time for interest calculation and for that reason repayments can be entered with a future date, if necessary. In order to accept postdated payments, this must be specified in the product settings.
To enter a repayment in the future**click Enter Repayment > enter the amount > select Postdate under Entry Date > Apply repayment.
Mambu will apply the repayment according to the schedule, on the next Pending instalment or instalments due dates.
For example we have a new loan, with no repayments entered, on which a $300 payment is postdated. Mambu will split the $300 according to the schedule and record the transactions on the instalment due dates. See below screenshots as well.
Postdated payments transactions:
Enter a custom repayment
This functionality is available only for dynamic loan term accounts and API 2.0 for the moment (please consult the API 2.0 documentation page to see the correct API call format. It should be available at https://yourenvironement/apidocs/#Loan_Transactions).
In order to post a custom repayment, the user needs the permission: "Perform Repayments With Custom Amounts Allocation".
At a dynamic term product level, in the Repayments Collection section, a new option was added in order to allow user to enter a custom repayment: "Allow Custom Repayment Allocation".
Once this option is enabled, the user can allocate the repayment amount from the API call to principal, interest, fee (fee type), or penalty balance.
For example :
- Principal Balance: $1000
- Fee Balance: $100
- Manual Fees: $30
- Upfront Fees: $70
- Interest Balance: $10
Enter a repayment of $200
Custom allocate the repayment amount towards Upfront Fee, Interest and Principal:
After the repayment has posted, the paid amounts will be:
Fees Paid: $70
Interest Paid: $10
Principal Paid: $120
Enter a repayment from a deposit account
A repayment can be entered from a Deposit Account directly to the Loan Account. To do it go the Deposit Account > select "Transfer > search for the target Loan Account > Click Transfer.
This can be done between different customers, so client A could make a repayment to client B.
In order to reverse the transaction the original transfer must be reversed from the Deposit Account, with it both transactions will be reversed.
Bulk Repayments Collection
The Repayments Collection module allows you to generate loan payments in BULK - i.e. for one or many accounts, for one date or a range of dates - and then either print, export or process these payments.
Bulk repayments process is added on the background process architecture, meaning that when a bulk repayment is processed, a process is sent to the database and it is marked in QUEUED state in the database. In this time, in UI, we display a progress bar with 0% (meaning that the process it should start). When a worker is available, it will take this process and put in In Progress state (in the database). In this time, in UI, the progress bar is increased and it will show the progress of the repayments. After the process is done it will be marked as COMPLETED in database and the progress bar it will disappear from UI.
A user cannot make 2 bulk payments in the same time. If the warning message “Another process is in progress” is display and you click OK, no other process will start, it’s just an information. We can see the progress of the bulk payments which is in progress from the progress bar.
In order to filter the accounts/repayments that you wish to process or print, go to Transactions > Repayments Collection > click on the dropdown menus to filter the repayments per branch, centre, credit officer, group and dates > click on Filter.
View Repayments vs View Accounts
If you select the View Repayments option, you will see all the repayments (installments) that fall due within the selected dates; e.g. you might see more than one repayment due for the same account if the range is 2 weeks and the account has weekly payments. The amount displayed for each row will be the repayment amount expected as per the schedule. The Date Paid and Amount Paid fields will be populated with default values from the repayment schedules of those accounts, assuming that the client paid on the due date, the exact amount due.
When selecting the View Accounts option, you will see the total amount due for each account as of the specified date (i.e. a sum of all amounts due up to that date, if the customer missed several installments). When selecting this view you can only select a single date, opposed to a date range.
Posting a Batch of Repayments
To enter the repayments, check the correspondent boxes for each repayment/account > click on Post Repayments > in the new window add the required details, then click on Post Repayments.
When posting the repayments you can specify the transaction channel to be used for all the repayments in the batch, along with any transaction details (such as a check or receipt #), and a backdate if needed. All of these will be applied to all payments in that batch.
Just like in Custom Views, you can customize which columns you want to see in the report. If you include any columns for transaction channel details, you can use them to enter specific transaction channel info for each repayment.
Printing "Repayment Collection Sheets"
The repayments collection tool can also be used to display and keep track of repayments due within a specific date. The list can then be printed and given to field staff who collect repayments directly from clients.
To print a list of repayments due, use the filters to display the list you wish > Print.
When a client doesn't pay the total amount due for a specific repayment, Mambu automatically sets a status of Partially Paid to that repayment. The amount paid will then be allocated according to the settings you defined in the Lending Parameters. So, the order you determined in that section will define your organization's priority in terms of what needs to be paid first, within principal, interest, fees and penalties.
Revert last repayment
To revert the last repayment entered to an account just open the loan account > Click on Transactions > find the last repayment and click on Actions - Reverse > enter the reason for the reversal > click Reverse Repayment.
If you have a question about how anything works or have come across something you haven't seen explained here, get in touch with our community of fellow users and Mambuvians where someone will lend a hand.
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