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)