In the Loan how-to guides section, you will find the most common use cases leading to the loan contract version change. Click on the particular scenario below to find out more.

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

• Book new contract fee,

• Search contract fee,

• Reverse contract fee.

Below you will find more information about the loan contract fees management.

Book new contract fee

1. Find the loan contract in question.

2. From the content menu, choose Fee bookings.

3. On the Search contract fees page, click Book new fee.

1. Fill in the new fee booking details.

1. Click Save.

Search contract fee

1. Find the loan contract in question.

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

3. From the content menu, choose Fee bookings.

4. Fill in the search parameters > Search.

5. To access the fee details, click the Identifier.

Reverse contract fee

1. Find the contract fee in question.

2. Click the Reverse button.

1. Fill in the Booking reversal form:

   • Enter the Reversal amount.

   • Select the Fee reversal reason:

     • Unemployment,

     • Laid off,

     • Sick leave,

     • Corona,

     • Other.

   • Select the Customer solvency level:

     • Normally performing credit,

     • Change is due to the customer's slightly weakened ability to pay,

     • Change is due to the customer's seriously weakened ability to pay,

     • Change is due to prevent credit going non performing credit.

2. Click Submit to confirm reversal.

The loan contract is the final step in the loan origination process, following the loan application and/or offer stages. It is created automatically when a loan offer is accepted.

If your company manages loan applications and offers outside the Tuum system, you can skip these steps and create the loan contract manually.

This section provides information on how to manage loan contracts within the Tuum system.

Once you select a content section, it appears in the loan contract view.

Content sections description

• Details: General loan contract information includes details such as the contract number and loan type. It also covers information related to the loan contract's origination, as well as the preparation and activation dates.

• Related Persons: Information about the borrower and other associated person accounts related to the loan contract, including co-borrowers, guarantors, co-guarantors, and co-signers.

• Loan Conditions: Details about the loan contract and amount, APR, and schedule.

• Contract Limit: Information about the loan contract and available credit limits.

• Contract Period: Details about the loan contract duration, number of payments, and end date.

• Disbursement Rules: Details of the loan contract disbursement rules.

• Balances: A list of loan component types and their balance information.

• Repayment Conditions: Details about the monthly repayment amount, including the payment day, next invoice date, and payment due date. It also includes repayment information such as the repayment account number. Additionally, this section may contain temporary repayment conditions.

• Interest and interest conditions: Loan contract interest details and information about the loan contract rate. To view past rate conditions, select the Show history checkbox.

• Fees: A list of loan contract fees and repayment rules. If a fee is charged at loan contract activation, it includes a list of related contract change types. Additionally, if activation fees apply, temporary fee conditions may be present.

• Penalty Conditions: Details about penalties related to the loan contract.

• Custom Fields: Additional, customised loan contract information.

• Comments: Loan contract comments. To add a comment, click the Add button.

Add contract documents

1. Find the loan contract in question:

1. From the content menu, choose Documents > click the New document button.

1. Fill in the new contract document details > Save.

A loan payoff preview functionality allows viewing the total amount required to pay off all contract balances and debts. By selecting a date up to the next invoice due date, the system calculates all loan contract components with a balance and/or debt.

Search payoff preview

1. Find the loan contract in question.

2. From the content menu, select Billing > Payoff preview.

3. Select the Value date > Preview.

You can use the loan payouts or payment instructions functionality to create on demand manual disbursements via the BackOffice.

The loan payouts menu allows:

• ,

• .

Create loan payouts

1. Loans > Search > Contracts.

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

3. From the content menu, click Payouts.

4. On the Search contract payouts page, click the Create payout button.

1. Fill in the and select the Beneficiary Account ID.

1. Click on the magnifying glass sign to search for an account. Click the Account number to select it.

1. Once the account is selected, you will see the account ID in the Create payout form.

Search loan payouts

1. Loans > Search > Contracts.

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

3. From the content menu, click Payouts.

4. Fill in the search parameters > Search.

5. Click:

   • The Identifier to view the Payment instruction page.

   • The Action log to view the Transaction events.

The payment instruction page shows the following information:

You can click the related transfer number to check the payment transfer details.

The loan contract communications are related to invoicing notifications and payment reminders.

Search loan communications

1. Find a loan contract in question:

1. From the content menu, choose Communication.

2. Fill in search parameters > Search.

Loan funds or cash are related to loan repayments and disbursements. Funds can be received as incoming payments or contract disbursements. See the instructions below for managing loan funds in the BackOffice.

Transfer funds from account

You can transfer the funds from the servicing account to the loan contract.

1. Find the loan contract in question:

1. Click the Contract number to access the contract information.

2. From the content menu, choose Billing > Funds.

3. On the Loan contract funds page, click the Transfer from account button.

1. Fill in the transfer details:

   • Amount - enter the transfer amount.

   • Details - enter the transfer details.

   • Choose the servicing account.

1. Click Submit.

Search loan funds

1. Loans > Search > Funds.

2. Fill in the search parameters > Search.

3. To access the fund details, click the Fund Identifier.

Loan contract fund details page

The fund details page has three action buttons:

• Start repayments - to start repayments.

• Change block - to change the repayments block date.

• Transfer to account - to transfer funds to the account.

Allocate funds

If the borrower needs to allocate available funds immediately, you can do the following:

1. Find available funds.

2. Check if the funds have an active repayment block. If so, click the Change block button and remove the Repayments blocked until date > Save.

3. Start repayment by clicking the Start repayments button > click Yes for the confirmation.

The loan write-off is a feature for managing loan-related debts. The write-off is used when the loan repayments collection is not possible due to some reason. For example:

• Bankruptcy,

• Customer death,

• Unrecoverable insolvency,

• Fraud.

In this case, banks decide to write-off the loans that are not possible to recover and collect. Sometimes the write-off is used when the remaining loan amount is small or the bank does not have the right to collect due to the court decisions.

Create loan write-off

1. Find the loan contract in question:

1. From the content menu, click Write-offs.

2. Click the Create write-off button.

1. Fill in the write-off details > Create.

Search loan write-offs

1. Access the loan write-offs page.

2. Fill in the search parameters > Search.

3. Click on the Identifier to open the write-off details.

Reverse write-offs

1. Find the write-off in question and make sure that it is in the PROCESSED status.

2. Click the Reverse write-off button.

1. Fill in the Description field > Save.

A loan contract invoice is a message to the borrower requesting the upcoming repayment amount. You can manage the loan contract invoices via the loan contract menu.

The loan contract invoices menu allows:

• ,

• ,

• ,

• ,

• .

Create invoice

1. Find the loan contract in question.

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

3. From the content menu, select Billing > Invoices.

4. Create invoice > fill in the > Create.

Search invoices

1. Find the loan contract in question.

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

3. From the content menu, select Billing > Invoices.

4. Fill in the search parameters > Search.

5. To access the invoice information, click the Invoice ID.

Credit note

The credit note functionality is used when there is an error in an already existing invoice, such as an incorrect amount. You can use the credit notes functionality to decrease the amount of each invoice line.

To create a new credit note:

1. .

2. Click the Create credit note button.

1. Fill in the > Create.

Reverse repayment

1. .

2. Click the Reverse repayments button.

3. Fill in the reversal details > Reverse.

Manage invoice repayments out of sync

You can find the invoice repayments that we not syncronised by the Tuum system in the dashboard:

1. Click the Tuum icon in the upper-left corner.

1. Look for the Loans section.

2. Find the Invoice repayment requests out of sync.

1. To manage the invoices out of sync, select the action and confirm the selection:

   • Sync repayment request - repayment request amount will be synced with the receivable debt amount.

• Cancel repayment request - receivable debt amount will not be automatically repaid from the loan servicing account.

Once you select a content section, it appears in the contract version view.

Content sections description

• Version Details: Information about the loan contract version, including its status, origination, and relevant dates. It also includes a list of Version Changes, specifying the loan contract change type used to create the version and any additional changes. Activation fee bookings are added based on the version change types.

• Activation Fee Bookings: Activation fee bookings related to the contract version. These bookings can be added to the contract version only if at least one of the change types listed in Version Changes is linked to an activation fee in the loan product configuration (i.e., a fee component with a fee booking rule set at activation). Note: you can modify the activation fee bookings, by clicking the change icon.

• Version conditions: Loan version contract conditions, including the contract and net amount, APR and schedule.

• Contract limit: Loan contract limit amount and limit usage date.

• Contract period: Initial and remaining number of payments and loan contract end date.

• Disbursement rules: Details of the loan contract disbursement rules. This section is available only if the loan product has associated disbursement rules.

• Repayment conditions: Monthly repayment amount and repayment frequency.

• Interest: Information about interest conditions, including rates, rate type, calculation method.

• Commitment fee: Information about the commitment fee (interest on the available limit). This section is available only if the commitment fee is activated for the loan product.

• Fees: Fee information.

• Penalty conditions: Details about the penalty type, rate and calculation method. This section is available only if penalty components are added to the loan contract.

Loan contract events is a feature that allows correcting - increasing and decreasing calculated interest and penalties.

Create loan contract event

1. Find the loan contract in question.

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

3. From the content menu, choose Events > Create event.

4. Fill in the > Submit event.

Search loan contract events

The Tuum loan module records all payments-related contract events on a loan basis. You can get a detailed overview of the loan contract events by searching for the loan contract events in the loan contract menu.

1. Find loan contract in question.

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

3. From the content menu, choose Events > Search.

4. Choose the event search type:

   • Summary - to search for the events summary.

   • Details - to search for the event details. You can also download a CSV file with event details.

   • Balance history - to search for the balance history.

   • Expenses and repayments - to search for the expense and repayment events.

Below you can find the screenshots of each contract events tabs.

Contract version is functionality that allows making changes to the loan contract. A contract has an unlimited number of versions.

Contract version flow

1. Draft - the initial status of a loan contract version.

2. Draft confirmed - assigned when an initial loan contract draft version is confirmed.

3. Waiting for signature - appears if the loan product configuration requires the borrower's signature.

4. Waiting for activation - an intermediary status that appears once a draft is confirmed or signed.

5. Accepted - assigned when a loan contract version is accepted.

6. Activating - an intermediary status that appears before the contract version becomes active

7. Active - the primary contract version status, assigned once the draft is fully activated.

8. Blocked - indicates that the contract version is blocked. The version can be unblocked if necessary.

9. Default - appears when a loan contract is defaulted.

10. Replaced - a final status assigned when a new draft version is activated, replacing the current active version. Once replaced, the version cannot be reactivated.

11. Canceled - a final status assigned when a draft version is canceled. Once canceled, the version cannot be reactivated.

12. Closing - an intermediary status that appears before a contract version is closed.

13. Closed - indicates that the contract version is closed.

14. Reactivating - assigned when a closed loan contract is being reactivated.

Contract version use cases

Common use cases for loan contract versions:

• Setting up a payment holiday,

• Topping up a loan contract,

• Changing the loan contract end date,

• Changing repayment conditions,

• Changing interest conditions,

• Changing fee conditions,

• Changing penalty conditions,

• Changing limit amount.

Contract version management

In order to manage the loan contract version, the BackOffice offers the following options:

• Create contract version,

• Find contract version,

• Activate contract version,

• Cancel contract version.

Create contract version

To create a new contract version, do the following:

1. Find the loan contract in question.

2. Go to the Contract tab > click the Change contract button.

1. Fill in the new contract version details > Create.

Find contract version

1. Click the sign on the Version tab to view a list of available contract versions.

1. Review the list of all existing versions.

2. Click the desired version to open it.

Activate contract version

To activate a draft version, do the following:

1. Find and open a draft version.

2. Click the Activate button.

1. Confirm the draft activation.

Cancel contract version

To cancel a draft version:

1. Find and open a draft version.

2. Click the Cancel draft button.

1. Confirm the draft cancellation.

The loan contract page displays loan contract details and provides options for managing loan contracts.

You can access the loan contract page 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.

Contract details and contract version

At the top of the loan contract page there are two tabs:

• Contract Details: Displays information about the current contract version. It also allows viewing details of previous versions, including balances and aspects affecting the loan contract, such as interest rate reference changes.

• Contract Versions: Displays details about all existing contract versions.

Content sidebar

The content sidebar is located on the right-hand side and consists of:

• Action Buttons: Loan contract management options.

• Content Sections: Loan contract sections that you can select or deselect to customise the Loan Contract view.

Action buttons

The action buttons define the loan contract management options.

Action buttons description

• Change contract - to create a new contract version. The available types of changes depend on the loan product configuration and loan group setup. These include:

  • Change limit,

  • Change fee conditions,

  • Change interest rate,

  • Change monthly repayment amount,

  • Change repayment conditions,

  • Customise schedule,

  • Payment free months,

  • Change loan period.

• Create Top-up version - to create a new top-up contract version.

• Block contract - to block the contract.

• Unblock contract - to unblock the contract.

• Close contract - to close the loan contract.

• Default contract - to default the loan contract if the borrowed did not complete the financial agreements.

Loan contract general info

Interest conditions

Loan contract details

Payment conditions

Campaigns

Fees

Payment instructions

View loan contract schedule

The contract schedule shows how many repayments the borrower has to close the loan contract and the expected contract closure date.

To view the contract schedule:

1. Find the loan contract in question.

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

3. From the content menu, choose Schedule.

4. Choose the contract version from the drop-down.

Export loan contract schedule

1. Find the loan contract in question.

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

3. From the content menu, choose Schedule.

4. Scroll to the bottom of the page, click the Export CSV button.

Prerequisites

The pre-requisite for the manual repayment is that the corresponding loan product allows MANUAL repayment channel:

Register manual repayment

1. Find a loan contract in question.

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

3. Click the Register repayment button.

1. Fill in the Register manual repayment details:

   • Enter the Repayment amount.

   • Select the Value date.

   • Enter the Repayment details.

   • Select the Payment channel.

   • Enter full Payer name.

1. Click Register.

Reverse manual repayment

If the manual repayment was registered by mistake or needs to be returned, you can make a repayment reversal.

Requirements

When reversing a manual repayment, ensure that:

Change repayments block date

If required, you can change the fund repayments repayment block date. To do that:

1. Find a loan contract in question.

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

3. From the content menu, choose Billing > Funds from the context menu.

4. On the Loan contract funds page, search for the repayment that needs to be reversed.

5. Click the Fund identifier to open the fund details.

1. Click the Change block button.

1. Set up a new Repayments block date > Save.

Reverse repayment

1. Find a loan contract in question.

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

3. From the content menu, choose Billing > Funds from the context menu.

4. On the Loan contract funds page, search for the repayment that needs to be reversed.

5. Click the Fund identifier to open the fund details.

6. Click the Return manual cash entry button.

1. Enter the Return amount and Details > Confirm.

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.

Add collateral

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.

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.

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.