What is a loan life cycle?

The typical loan life cycle in origination is application submission to disbursement.

For a loan management software, the lifecycle starts from disbursement and ends in payoff. The various function performed by a loan management system software in the loan life cycle are:

• Loan Onboarding with Loan Account and Borrower Account Creation based on LOS input.
• Loan Schedule creation based on Principal, Rate, Frequency, Payment Hierarchy and First Payment Date. Support for Moratorium period.
• For LOC or revolving credit Funded & Non-Funded Limits Management and Multiple Disbursals
• Document Management
• Payment Workflow
• Balance, Overdue, Excess Payment tracking
• Apply Fees & Charges as per business rules.
• Account Statements and delinquency management
• Write off, Charge off, Sell off management
• Closure Process, Unwinding process (in special scenario)

• May 31, 2021