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