Loan contract management

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

• Create loan contract,

• Search loan contract,

• Add collateral,

• Block loan contract,

• Unblock loan contract,

• Default loan contract,

• Close loan contract.

Create loan contract

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

1. Go to Persons > Search.

2. Click the Name to access the person details page.

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 contract

You can find loan contracts via via Loans or Person modules. If a loan is related to a collateral asset, you can also find it via Assets page or via Collateral agreement page.

via Loans

1. Loans > Search > Contracts.

2. Click the Contract number to open the loan contract page.

via Persons

1. Persons > Search and locate the person-borrower who has a loan contract.

2. Click the person Name to access the person details page.

3. From the content menu, select Loans > Loan contracts.

4. Click the Contract number to open the loan contract page.

via Asset

1. Collateral > Assets.

2. Search for asset > click the Asset ID to access the asset details page.

3. Scroll to the Collateral agreement page > click the Credit contract to open the loan contract details.

via Collateral agreement

1. Collateral > Search agreements.

2. Click the Agreement ID to access the collateral agreement details.

3. Scroll to the Collaterals section > Contract number.

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.

Block loan contract

Blocking a loan contract prohibits loan disbursements. If loan disbursements need to be reactivated, unblock the loan contract.

To block a loan contract:

1. Find a loan contract in question.

2. Click the Block contract button.

3. Confirm your action.

Unblock loan contract

To unblock a loan contract:

1. Find a loan contract in question.

2. Click the Unblock contract button.

3. Confirm your action.

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.

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:

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 Reactivate button.

1. Select 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.

2. Optionally enter the description and click Reactivate.