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A loan group code defines the main loan product characteristics, such as the types of changes allowed for the product, loan behavioral types, and links to the finance entry dimensions.
Below, you will find information on how to create and manage loan groups in the BackOffice.
To add a new loan group, navigate to:
Loans > Settings > Loan groups.
On the Loan groups page, click Add.
Fill in loan group details:
Loan group code - The name of the loan group. Note that the value should be unique.
Description - A textual description for the loan group.
Change type codes - Select the loan contract change types that are applicable:
CHANGE_FEE_CONDITIONS,
CHANGE_INTEREST_RATE,
CHANGE_LIMIT,
CHANGE_LOAN_PERIOD,
CHANGE_MONTLY_REPAYMENT_AMOUNT,
CHANGE_PAYMENT_DAY,
CHANGE_REPAYMENT_CONDITIONS,
CUSTOMISE_SCHEDULE,
PAYMENT_FREE_MONTHS.
Reporting product code - Enter the reporting product code. Reporting product code is a general attribute that can be assigned to a business entity and will be transferred into a financial entry dimension.
Behaviour code - Choose the behavioural code that applies:
Credit Line,
Instalment Loan,
Umbrella.
Collateral required - Toggle on if the collateral is required for this loan type.
Revolving - Toggle on if this loan type is revolving.
Click Add to create a new loan group.
To view a list of existing loan groups, go to:
Loans > Settings > Loan groups.
Modify parameters. Note that you can only change:
Description,
Change type codes,
Reporting product code.
Click Save.
Click Confirm to proceed with the loan group deletion.
The loan group parameter is used when setting up a loan product. In the loan product set up page the parameter is called Product group. Find more information .
To improve your search results and visibility, you can use the .
You can and loan groups.
that you want to modify.
Click the change icon.
that you want to delete.
Click the delete icon.
Loans > Settings > Class codes.
On the loan class code page, click the New loan class code button.
Enter the Loan class code settings:
Enter the Loan class code.
Enter the Description.
Click Create.
Once class code is created, you can edit it or delete it by clicking the corresponding buttons.
To edit or delete loan class code:
Loans > Settings > Class codes.
You can delete a class code only if it is not assigned to any loan product.
To assign a specific General Ledger to a loan class code, you can create a loan component rule.
To create a rule, go to:
Finance > Settings > Rules configuration.
From the content menu, choose Loan module > Loan component rules.
On the Loan component rules page > Create rule.
Product code*
Text
Enter a unique loan product identifier. It is used to identify your loan product in the system.
Description*
Text
Enter the name of the loan product. The description is visible under the loan products list.
Product group*
List
Revolving
Checkbox
The checkbox is auto-selected if the selected product group type is revolving.
Loan class code
List
Reporting product code
List
Select the reporting product code.
Schedule*
List
Schedule customisation allowed?*
List
Select if the loan schedule customisation is allowed or not. Note: this field is available if the unsecured or general secured loans are selected as a product group.
Status*
Displayed
Status indicates the product status after the activation. The default value is ACTIVE.
Currency*
List
Select the loan currency from the list.
Country*
List
Select the country where you offer the loan product to the borrowers. You can choose a value from a predefined list.
Contract number prefix*
Text
Enter the contract number prefix. It is used to generate the loan contract number.
Organisation unit*
List
Select the tenant where the loan is offered to the borrowers. Enter a value if you would like to offer this loan product only for a specific branch.
Scoring valid days
Number
Enter the number of the scoring days validity. If the loan contract is not signed by then, the application, the offer and the contract draft are cancelled.
Offer valid days*
Number
Enter the number of days when the loan offer is valid. If those days are passed, the offer is terminated. And a new offer should be created to activate the loan contract.
Default days
Number
Enter the number of days after the start of the debt contract is defaulted.
Blocked days*
Number
Enter the number of days after the start of debt when the contract is blocked. Note: it is relevant for Overdraft loans without internal account product.
Capitalised contract conclusion fee*
List
Select whether the contract conclusion fee is capitalised to loan principal amount or not. The possible values are:
Yes,
No.
Schedule re-generation rule
List
Select which type of rule is followed for the repayment schedule if the contract is changed. Possible values:
Fixed length - during schedule re-generation, the system keeps the schedule length the same as in the original loan contract.
Fixed payment - during schedule re-generation, the system keeps the instalments the same as in the original loan contract.
Fixed payment and length - during schedule re-generation, the system keeps the instalments and length the same as in the original loan contract. The difference between the amounts after re-generation is assigned to the last payment in the loan repayment schedule.
Limit usage end
List
Select the rule for limit usage date calculation:
Contract End - limit is available for usage until the end of the contract.
Contract Activation - limit is available for use only on activation.
Note: the parameter is relevant for overdraft loans without internal account product and instalment loans.
Max payment free months
Number
Enter the number of the payment free months per year that can be added to the loan contract.
Minimum month between
Number
Enter the number of months that should be in between the payment free months added to the loan contract.
Service account rule*
List
Select the rule defining if the service account is required for a contract. The parameter defines if the service account is generated automatically, or it can be left undefined.
Shadow account created,
Current account required,
No service account.
The Tuum loan products module allows you to configure different loan products that you can offer to your customers. The loan product configuration module determines product behaviour, business rules, pricing and input validation rules.
The BackOffice allows:
Loans > Products > Loan products.
In the upper-right corner, click the Add new product button.
New product creation screen is displayed.
Click the Create product button.
Here you will find a list of the parameter groups that should be filled when creating a new loan product:
Loans > Products > Loan products.
Click on the Product to view the loan product details.
Open the necessary loan product.
Modify the parameters > click the Update button.
Loans > Products > Loan products.
A new page with prefilled loan product settings will appear.
Check the settings and click the Create product button.
The class code serves to distinguish different account or contract balances in the General Ledger. You can to a loan product, which allows for assigning specific General Ledger accounts within the same loan group. For example, loan products for private and corporate clients may be linked to separate General Ledger accounts.
Click to edit the class code.
Click to remove the class code from the list.
Fill in the > Submit.
In the general parameters section, you can determine the main settings for the loan product, such as and , etc.
The value affects the availability of the parameters and their values in the following product creation process.
Select the product group. It defines the loan type. Then, based on the loan type, the system determines the parameters required for this loan product. To learn more about the predefined values - see the description below. Note: for more information on loan product groups, refer to the .
Select the loan class code. Note: for more information on the loan class code parameter, refer to the .
Select the loan contract repayment schedule. It determines the way how the borrower makes the loan repayments. To learn more about the predefined values - see the description below.
Loan group
Text/ number
Enter the loan group name.
Component type*
List
Select the loan component type. The available options:
FEE,
INTEREST,
LIMIT,
PENALTY,
PRI.
GL account rule code*
List
Select the GL account rule code. The available options:
getLoanBalanceAccount,
getLoanClaimAccount,
getLoanDeferredFeeAccount,
getLoanIncomeAccount.
Validity start date*
Date
Select the validity start date.
Loan class code
Text/ number
Enter the name of the loan class code. See more about the .
Component code*
List
Select the component:
ADM,
BILLING_ADMINISTRATION_FEE,
CERTIFICATE_FEE,
CHANGE_FEE,
COF,
DISBURSEMENT_FEE,
DOCUMENT_COPY_FEE,
DSA_FEE,
DUE_DATE_CHANGE_FEE,
PAYMENT_HOLIDAY_FEE,
PREMATURE_REPAYMENT_FEE,
REMINDER_FEE,
TERMINATION_FEE,
TOPUP_FEE,
ALIM_INT,
INT,
ADM_P,
ALIM_INT_P,
BILLING_ADMINISTRATION_FEE_P,
CERTIFICATE_FEE_P,
CHANGE_FEE_P,
COF_P,
DISBURSEMENT_FEE_P,
DOCUMENT_COPY_FEE_P,
DSA_FEE_P,
DUE_DATE_CHANGE_FEE_P,
INT_P,
PAYMENT_HOLIDAY_FEE_P,
PREMATURE_REPAYMENT_FEE_P,
PRI_P,
REMINDER_FEE_P,
TERMINATION_FEE_P,
TOP_UP_FEE_P,
PRI.
GL account*
List
Select the relevant GL account.
,
,
,
.
Enter all the required information. See more in the section.
Find the loan product that should be duplicated and click the copy icon .
Next, you can set the interest on the unused credit limit. If the borrower has not used their available credit limit, the lender can charge a fee on an unused limit.
If you want to enable the Interest on unused limit, check the Enable commitment fee checkbox:
Once the commitment fee is enabled, fill in the parameters:
Interest type
List
Select the interest calculation type.
You can choose between:
fixed,
floating rates.
Days in year
List
Select the day-count convention used for calculating the accrued interest. Predefined values available:
ACT/360 (actual number of days in a month and 360 days in a year),
ACT/365,
30/365,
30/360.
Reference rate
List
Select the reference rate. It specifies which reference rate is used:
EURIBOR-6M,
EURIBOR-3M,
EURIBOR-1M,
EURIBOR-1W,
LIBOR-USD-3M.
Note: this parameter is available if the Interest type = Floating.
Negative rate handling
List
Select the negative rate handling. It specifies the way how the system handles the negative reference rate. The predefined values are:
The negative base rate is changed to 0. If the reference rate value equals to or is smaller than 0, it is equated with 0. Only the contract margin rate is used for interest calculation.
The negative base rate is used, but the total cannot be negative. Thus, regardless of the reference rate value, it is used for interest calculation, but with the restriction that the total reference rate and the contract margin rate cannot be below 0.
Note: this parameter is available if the If Interest type = Floating.
Penalty
Checkbox
Min*
Number
Enter the minimum period for the loan duration in months.
Max
Number
Enter the maximum period for the loan duration in months.
Penalty
Checkbox
Select the checkbox if you want to add the penalty to the principal. Note: that the penalty has a standard setup. To learn more about penalty configuration, see the section.
Base*
List
Select the principal base. The possible values:
balance,
balance and debt.
Interest type*
List
Select the interest rate type. The possible values:
fixed,
floating.
Apply global cap
Checkbox
Select to apply the interest global cap.
Interest rate cap*
List
Select the interest rate cap type. Note: this parameter is available only if the apply global cap checkbox is selected.
Adjust margin according to cap
Checkbox
Select this checkbox to adjust the margin according to the interest cap. Note: this parameter is available only if the apply global cap checkbox is selected.
Days in year*
List
Select the type of the day-count convention used for calculating the scheduled interest amounts and the daily accrued interest. Predefined list options:
ACT/360 (actual number of days in a month and 360 days in a year),
ACT/365,
30/365,
30/360.
Reference rate*
List
Select the reference rate. It specifies which reference rate is used.
Note: this parameter is available if the Interest type = Floating.
Negative rate handling*
List
Select the negative rate handling. It specifies the way how the system handles the negative reference rate. The predefined values are:
The negative base rate is changed to 0. If the reference rate value equals to or is smaller than 0, it is equated with 0. Only the contract margin rate is used for interest calculation.
The negative base rate is used, but the total cannot be negative. Thus, regardless of the reference rate value, it is used for interest calculation, but with the restriction that the total reference rate and the contract margin rate cannot be below 0.
Note: this parameter is available if the If Interest type = Floating.
Penalty
Checkbox
Select the checkbox if you want to add the penalty to the principal. Note: that the penalty has a standard setup. To learn more about penalty configuration, see the section.
Minimum loan amount*
Number
Enter the minimum loan amount.
Maximum loan amount*
Number
Enter the maximum loan amount. Note: that the last number from the maximum loan amount is excluded.
Minimal withdrawal type*
List
Select the minimum withdrawal type:
Fixed,
Percentage.
Minimal withdrawal amount/rate*
Number
Enter the minimum withdrawal amount.
Penalty
Checkbox
Select the checkbox if you want to add the penalty to the principal. Note: that the penalty has a standard setup. To learn more about penalty configuration, see the section.
Select the checkbox if you want to add the penalty to the principal. Note: that the penalty has a standard setup. To learn more about penalty configuration, see the section.
The repayment scheduling allows you to choose the method which defines the loan product contract repayments.
Only the RECEIVABLE repayment method is available. The AUTOMATIC and INVOICE options have been discontinued.
Allows lenders to manage contract related repayments with periodic invoicing. The loan contract defines the invoicing periods. At the end of the period, usually monthly, the contractual repayment amounts like principal, interest and fees are fixed. And an invoice with a due date and total amount to pay is created. Once the borrower pays the invoice, the system allocates the payment between different receivables items and marks the respective contractual obligation as settled.
Payment interval in months*
Number
Enter the payment regularity in months. For example, principal payments are repaid every 1st month - use 1 as a value. If you would like to have payments made quarterly or annually, you have to enter 3 or 12. That means that payments are repaid every 3 or 12 months.
Repayment method*
List
Select the repayment method type, in the current example, Receivable.
Premature repayment allowed*
List
Select if the premature repayments are allowed or not for that loan product.
The predefined values are available:
Yes,
No.
Automatic small balance write off*
List
Select if the small balance is automatically written off:
Yes,
No.
Grace period days due to death*
Number
Enter the number of the grace period days due to the customer death.
Default invoice delivery method
List
Select the default invoice delivery method:
E-invoice,
Post.
Invoice date rule
List
Select the rule that defines the invoice creation date:
Fixed date,
No regular invoicing,
Backward from due date.
Minimum invoice amount*
Number
Enter the default monthly repayment amount for generating the invoice. Note: this field is available if the loan product is a credit line or a revolving credit line with the repayment amount rule = percentage of principal balance.
Invoice date
Number
Not applicable.
Invoice due date*
Number
Enter the monthly due day for loan repayment.
Death invoice minimum PRI balance
Number
Enter the death invoice minimum principal amount.
Repayment amount rule*
List
Select the repayment amount rule. Available values:
Fixed amount,
Percentage of principal balance.
Note: this parameter is available for revolving credit line or line of credit products when the invoice date rule = backward from due date / fixed date.
Invoice term days*
Number
Enter the number of days between the invoice creation date and the invoice due date. Note: this parameter is available for revolving credit line or line of credit products when the invoice date rule = backward from due date.
First repayment lag*
List
Enter the minimum number of days from the contract activation to the due date of the first invoice. Note: this parameter is available for revolving credit line or line of credit products when the invoice date rule = backward from due date / fixed date.
Minimum billing period days*
List
Enter the minimum number of days that need to pass from the previous invoice to generate a new invoice. Note: this parameter is available for revolving credit line or line of credit products when the invoice date rule = backward from due date / fixed date.
Invoice date rule*
List
Select the rule used for calculating invoice generation (billing) dates and invoice due dates. Predefined values available:
Schedule,
Fixed date,
Backward from due date - fixed invoice due date is set on product and contract, and billing date is calculated backwards from it by a given number of days.
Repayment reference number type
List
Select the reference number that connects repayments with loan contracts.
Allowed repayment
channels*
List
Select the repayment channels. Note: multiple choice is allowed.
Default repayment channel*
List
Select one of the options from the repayment channels.
Press the Add Fee button.
Fee adding screen is displayed.
Enter all the required information. See the fees parameters below.
Select Add to insert fee to the loan product.
Fee type*
List
Select a predefined name of the fee that describes the fee reason.
Fee amount calculation rule*
List
Select the fee calculation method. Predefined values available:
Fixed - if a fixed amount is applied.
Percentage of loan amount - if the fee amount is calculated based on the percentage.
Percentage of loan amount distributed over the schedule - if the fee amount is calculated based on the percentage; and the payments are distributed over the schedule.
Fee amount is fixed on an offer
List
The predefined field. The predefined value is set automatically. The possible values are:
Yes,
No.
When fee is booked*
List
Select the rule that defines when the fee is booked. You can choose a value from a predefined list:
One-time fee,
At contract activation,
With a loan amount disbursement,
Periodic fee booked at the beginning of each period,
At contract defaulting.
How the fee is repaid*
List
Select the rule that defines how the fee is repaid. You can choose a value from a predefined list:
Fee needs to be repaid instantly after booking it,
Fee is repaid with the next upcoming regular payment, put on the next regular receivable.
Deferred revenue recognition rule*
List
Select the conditions when the revenue is recognised. You can choose a value from a predefined list:
Fixed period days,
Remaining loan term,
Monthly scheduled period.
Deferred accrual period*
Number
Enter the number of days for the deferred accrual period. Note: this field is applicable if the Deferred revenue recognition rule = Fixed period days.
Change type codes*
List
Select the fee change code. Note: multiple choice is allowed; this field is related to the When fee is booked parameter At activation.
The origination process parameters allow you to customise the loan origination flow and define the loan workflow. To set up the origination flow parameters, choose the available values Yes or No from a dropdown. To learn more about the origination parameters, see the table below.
You can learn how to set up in the loan how-to guides.
Scoring review allowed*
List
Select whether the credit score is sent directly from a 3rd party system or inserted manually into the Tuum system (can be reviewed and approved by an additional employee).
Application change allowed*
List
Select whether the application change is allowed. If not, a new application needs to be submitted.
Application review required*
List
Select whether the application review by the employee is required or not. If the application review is not required, the system creates a loan offer automatically.
Offer review required*
List
Select whether the offer review by the employee is required or not before presenting the offer to a borrower.
Contract review required*
List
Select whether the contract review by the employee is required or not before activating a contract. If contract review is not required, then the contract is activated automatically.
Payment instruction required*
List
Select whether the payment instructions (SSI) used for loan disbursement must be entered during the application/offer creation process.
Account sweeping required*
List
Select whether the account sweeping functionality is required or not.
Note: if this parameter is set to YES - when the loan is created, and the loan amount is disbursed, then it is automatically swept (sent) from the servicing/shadow/current account to the loan account. It is recommended to set the account sweeping to NO.
File generation required*
List
Select whether the printouts generation for the loan contract is required or not.
Signature required*
List
Select whether signing the contract by the borrower before its activation is required or not.
The disbursement parameters define rules and channels through which the disbursement can be done. Multiple disbursement channels are allowed.
Disbursement rule*
List
Select the rule indicating if the loan will be paid out at activation or later by request:
Fully at activation,
On demand.
Note: the parameter availability for instalment loans depends on the Limit usage end parameter settings:
If the Limit usage end = Contract activation, then Disbursement rule = Fully at activation.
If the Limit usage end = Specific date, then Disbursement rule = On demand.
Allowed disbursement channels*
List
Select the disbursement channel. Note: multiple choice is allowed.
Default disbursement channel*
List
Select one of the options from the disbursement channels.
You can define the Loan to value (LTV) range by defining the percentage range to the different risk categories.
Level*
List
Select the loan-to-value ratio risk level name. The available values:
GREEN,
YELLOW,
RED.
Min*
Number
Enter the minimum loan-to-value percentage.
Max (last excl.)*
Number
Enter the maximum loan-to-value percentage.
The invoice rules define the penalty grace days and penalty grace amount. You can enter the amount of days and the grace amount and currency.
Formation rules determine how the invoice will be formed. To create an invoice, you need to include the component details and the order of the components. For example, components can be principal, interest, and fees.
You can add formation rules for:
Periodic invoice,
Premature repayment invoice.
To add the formation rules, click Add and enter the following information:
Component
List
Select a component that you want to add to the invoice.
Source name
Text
This field is read-only. The source of the component is filled automatically according to the component you select.
The following screenshot shows sample rules for the Periodic invoice tab:
The receivable line rules determine the configuration of different components, payment orders etc., in case of different invoice types:
Periodic invoice,
Premature repayment invoice,
One-time invoice.
Also, you can choose the debt transferable parameter. This setting allows adding the unpaid (debt) amount from the current invoice to the new invoice.
You can learn more about loan penalty calculation settings in .
Click Add to add more rules and click the cross icon to remove the rules. To change the order that the components appear on the invoice, drag the hamburger icon up or down.
This section is applicable only for the RECEIVABLE .
You can choose the invoice type and organise the order of the components by drag-and-drop icon .
This section is applicable only for the RECEIVABLE .
The penalty section is available under each loan component:
This functionality allows lenders to define the rules for penalty calculation for each loan component separately if the borrower is late with their scheduled repayments.
When a penalty is enabled, the pricing rule configuration elements will appear in the pricing section next to the component pricing rules. When you select a more sophisticated set of pricing rules, the detailed set of parameters opens below the list of components in the particular tab.
Base
List
Select the value used to calculate the penalty. The possible values are:
Debt - only debt amount is used for calculating the penalty amount. Note: this should be the value that is usually selected.
Debt and Balance - both debt and outstanding balance are used for calculating the penalty amount.
Penalty type
List
Select the penalty calculation type. The possible values are:
Fixed,
Floating,
Same as interest,
Floating penalty with interest.
Reference rate
List
Select the reference rate that is used. Note: this field is applicable only if the Interest type = Floating or Floating penalty with interest.
Negative rate handling
List
Select the negative rate handling. It specifies the way how the system handles the negative reference rate. The predefined values are:
The negative base rate is changed to 0. If the reference rate value equals to or is smaller than 0, it is equated with 0. Only the contract margin rate is used for interest calculation.
The negative base rate is used, but the total cannot be negative. Thus, regardless of the reference rate value, it is used for interest calculation, but with the restriction that the total reference rate and the contract margin rate cannot be below 0.
Note: this parameter is available if the If Interest type = Floating or Floating penalty with interest.
Days in year
List
Select which day-count convention is used for calculating the accrued interest. Predefined values available:
ACT/360 (actual number of days in a month and 360 days in a year),
ACT/365,
30/365,
30/360.
Note: this parameter is available if the If Interest type = Floating or Floating penalty with interest.
,
,
and .
You can learn more about loan penalty calculation settings in .
To enable loan component-related penalties, tick the Penalty box in the particular loan component section and select values for the main .
Refer to the table in the Pricing chapter to configure the penalty pricing rules.
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The custom fields allow you to add some custom data to the loan product configuration.
Find more on custom fields in the chapter of the BackOffice user guide in the Administration section.
You can access sample loan product setup use cases in the Loan how-to guides section. Click on a specific example below to learn more.
In the loan product pricing section, you can define pricing parameters for different loan components and associated penalties. The configuration elements will appear in the pricing section as per your selection for different loan components and associated penalties.
Only the Interest component can be configured in the pricing section if you have not added any fee component to the loan product.
If you prefer a simple rule setup, keep the Pricing rule FIXED and assign the parameter Default value with the intended numeric value. To illustrate, see the example below, where the Contract changing fee has assigned a Default value of EUR 150.
See another illustrative example below, where the Pricing rule for the Contract conclusion fee is set to Amount, and the detailed set of parameters is visible at the bottom of the Pricing section.
You can increase the pricing rule sophistication level by selecting the Pricing rule combined value like in the following example, where the Pricing rule for the Interest is set to Score+amount.
Component*
List
The predefined parameter. The available value:
Interest.
Pricing rule*
List
Select the pricing rule. The available values:
FIXED,
CHANNEL,
SCORE,
AMOUNT,
PERIOD,
CHANNEL+SCORE,
CHANNEL+SCORE+AMOUNT,
CHANNEL+AMOUNT+PERIOD,
CHANNEL+SCORE+PERIOD,
CHANNEL+SCORE+AMOUNT+PERIOD,
SCORE+AMOUNT+PERIOD,
AMOUNT+PERIOD,
SCORE+AMOUNT,
SCORE+PERIOD.
Default interest rate*
Number
Enter the default interest rate.
Min Score
Number
These parameters indicate the score range to which the borrower credit score should fall.
Max Score
Number
These parameters indicate the score range to which the borrower credit score should fall. Note: Max Score last number is excluded.
Min Amount*
Number
Enter the score range to which the borrower loan application/offer principal amount should fall.
Max Amount*
Number
Enter the score range to which the borrower loan application/offer principal amount should fall.
Note: Max Amount last number is excluded.
Interest rate*
Number
Enter the interest rate (annual) or margin rate (depending on if it is fixed or floating interest type) percentage corresponding to the given score, amount.
Min Period*
Number
Enter the minimum and maximum loan period for a given score and loan amount.
Max Period*
Number
Enter the minimum and maximum loan period for a given score and loan amount.
Note: Max Period last number is excluded.
When you define fees in the , for example, Contract conclusion fee and Contract changing fee, these fees also become configurable in the Pricing section.
To fill in the for each loan component, select the Pricing rule. The chosen option determines the set of parameters for component pricing configuration.
When you need a more sophisticated set of pricing rules, select some other value for the Pricing rule. The detailed set of parameters opens below the list of components in the particular tab. Click on the add icon to add more parameter set rows, or click the cross icon to remove one.
To get detailed information about the available pricing parameter options, refer to the table below.
