Loan contract

To manage loan contracts in the BackOffice you can do the following:

The loan contract is the third step in the loan origination process after the loan offer.

The loan contract is created automatically when the loan offer is accepted. Or you can create it manually, without a loan offer.

Create loan contract

You can create a new loan contract manually for a person:

  1. Persons > Search.

  2. Click the Identification number to access person details.

  3. From the content menu choose Loans > Loan contracts.

  4. On the Loan contracts page, click Create.

  1. Fill in loan contract parameters > Save.

Search loan contracts

  1. Loans > Search > Contracts.

  2. Fill in the search parameters > Search.

  3. To access the loan contract details, click the loan Contract number.

BackOffice users with the VIEW_LOAN_CONTRACTS privilege can view loan contract details.

View loan repayment conditions

  1. Find the loan contract in question.

  2. Scroll to the Repayment Conditions and choose:

    • Version special conditions - to see the loan version special conditions.

    • Contract special conditions - to see the full history of the loan contract changes.

View loan contract components

The components section shows the list of the loan components, the balance and debt details and rate information.

  1. Find the loan contract in question.

  2. Scroll to the Components.

Add collateral

Applies only if a borrower requested a secured loan.

To add a collateral to a loan contract:

  1. Find the loan contract in question.

  2. Click the Contract number to access the loan contract details.

  3. From the content menu, choose Collateral.

  4. On the Collaterals page, click the Create agreement button.

Once you add a collateral agreement, the loan contract collaterals page will show the collateral agreement details.

  1. Follow the instructions to create the collateral agreement.

View contract interests

As interest is calculated daily, you can have an overview of the exact amount of gathered interest for the current period. Below you will find instructions on how to find the contract interests.

To view loan contract interests:

  1. Find the loan contract in question.

  2. Click the Contract number to access the loan contract details.

  3. From the content menu, choose Interests.

If you need to modify the interest conditions, create a new contract version with the Change interest rate change type.

Default loan contract

If the borrower is not making the loan repayments, the loan is transferred to debt. You can terminate the loan contract by defaulting it.

To default on a loan contract:

  1. Find the loan contract in question.

  2. Click the Default button.

BackOffice users with the DEFAULT_LOAN_CONTRACT privilege can default loan contracts.

Close loan contract

You can close a loan contract only if all of the requirements are met.

Requirements to close loan contact:

  • The loan contract end date has reached,

  • There are no remaining amounts,

  • All components have 0 balance and debt,

  • There are no available funds (cash),

  • There are no unpaid invoices.

To close a loan contract:

  1. Find the loan contract in question.

  2. Click the Close button.

Once the loan contract is closed, the Tuum system updates the loan contract details page and sets the Actual closing date parameter:

BackOffice users with the CLOSE_LOAN_CONTRACT privilege can close loan contracts.

Reactivate loan contract

The contract reactivation allows reopening the closed contract to modify the loan contract settings. To reactivate the closed loan contract:

  1. Find the loan contract in question.

  2. Click the Draft version number.

  3. Once the contract details page is opened, click the Reactivate button.

  4. Choose the Reason code:

    • Incorrect repayment - if there was an incorrect repayment,

    • Incorrect write-off - if the loan was closed incorrectly due to the borrower’s incapability to cover the loan charges.

    • Other - if there were other loan-related reasons.

  5. Write down the Description, and click the Reactivate button.

BackOffice users with the REACTIVATE_LOAN_CONTRACT privilege can reactivate loan contracts.

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