Lending Loan Module in Frappe

Overview of Modules and Features

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Lending loan management dashboard

What is Lending Loan in Frappe?

A comprehensive loan management solution that automates the entire loan lifecycle

Full Lifecycle Management

Manages the complete loan journey from application to closure with integrated workflows.

Process Automation

Automates Application → Approval → Disbursement → Repayment → Closure processes.

Seamless Integration

Integrates with Accounting, CRM, and HR modules for a unified business experience.

Lending Loan Modules

Explore the comprehensive components of the Frappe Lending Loan system

Loan Application

  • Start of the loan process

  • Applicant details, Amount, Purpose

  • Approval workflows

Loan Type

  • Define different types of loans

  • Set Interest rate, Max amount, Repayment methods

Loan Record

  • Created after approval

  • Track Loan amount, Disbursement, Repayments

  • Interest calculation methods (Flat, Reducing balance)

Loan Security

  • Manage collaterals like property, fixed deposits

  • Link securities to loans

Loan Disbursement

  • Release loan amount to borrower

  • Methods: Bank, Cheque, Cash

  • Automatic accounting entries

Repayment Schedule

  • Installment tracking

  • Principal, Interest, Due dates

Loan Repayment

Penalties and Charges

  • Late payment penalties

  • Configurable per Loan Type

Loan Write-Off

  • non-recoverable loans

  • Accounting for bad debts

Interest Accrual

  • Calculate earned interest monthly/daily

  • Records interest income before repayment

Reports

Comprehensive reporting tools for monitoring and analyzing loan portfolio

Loan reporting dashboard showing analytics and charts

Powerful Reporting Features

  • Loan Ledger

    Detailed transaction history for every loan account with chronological entries.

  • Overdue Loans

    Identify and manage delinquent accounts with aging analysis.

Repayment Status

Track scheduled vs. actual repayments with variance analysis.

  • Disbursement Summary

    Overview of all disbursements with aggregation by period, loan type, and more.

  • Portfolio Overview

    High-level view of the entire loan portfolio with risk assessment.

    • Integrations with Other Modules

    Seamlessly connect experience

    Accounts

    Automatic journal entries for loan transactions,

    HR

    Employee loans management with salary deduction integration for repayments.

    CRM

    Lead management for potential borrowers with conversion tracking and analytics.

    Notifications

    Automated reminders for due dates, approvals, and important loan events.

    Lending Loan Workflow

    The complete lifecycle of a loan in the Frappe system

    Loan Application
    Approvalhart-item">Loan
    Disbursement
    Repayment
    Closure/Write-Off

    End-to-End Process Flow

  • Loan Application

    Borrower submits request with required documentation

  • Approval Process

    Application reviewed, credit checked, and decision made

  • Loan Creation

    Approved application converted to loan account with terms

  • Disbursement

    Funds released to borrower via configured payment method

  • Repayment Cycle

    Regular installments tracked against schedule

  • Closure or Write-Off

    Loan fully repaid or determined uncollectible

    • Frequently Asked Questions

    Common questions about the Lending Loan module

    What types of loans can the system handle?

    module supports various loan types including term loans, revolving credit, secured and unsecured loans, amortized loans, and more. The system is highly configurable to accommodate different interest calculation methods, repayment schedules, and loan terms.

    How does the integration with accounting work?

    The module automatically creates journal entries for all loan transactions including disbursementscruals, and write-offs. These entries follow configurable accounting templates that map to your chart of accounts, ensuring accurate financial records without manual intervention.

    Can I customize the approval workflow?

    Yes, the approval workflow is fully customizable. You can define multiple approval levels based on loan amount, loan type, or other criteria. Each level can have designated approvers, required documentation, and conditional logic to route applications appropriately.

    How are penalties and late fees handled?

    The system can automatically calculate penalties and late fees based on configurable rules. These can be fixed amounts, percentages of outstanding principal, or percentages of overdue installments. The penalties can be applied at various intervals (one-time, daily, monthly) and can compound if desired.

    Is there support for loan collateral management?

    Yes, the Loan Security feature allows detailed tracking of collateral including property, vehicles, securities, and fixed deposits. You can record collateral valuation, loan-to-value ratios, and link multiple securities to a single loan. The system also monitors collateral adequacy throughout the loan lifecycle.

    Conclusion

    The complete loan management solution for your business

    Complete Management

    Frappe's Lending Loan module covers the entire loan lifecycle with comprehensive features for all stages.

    Process Automation

    Automates critical financial processes to reduce manual work and minimize errors.

    Seamless Integration

    Integrates smoothly across your entire ERP ecosystem for a unified business experience.

    Request More Information

    Interested in implementing the Lending Loan module? Contact us

    Ready to Transform Your Loan Management?

    Get started with the Frappe Lending Loan module today and streamline your entire loan process.

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