Product categories are a logical grouping of certain products such as car loans, home loans, etc. Banks can create different products depending on the services they offer.
When a loan is given to a customer, the loan account is created under a specific product.
Thus, its characteristics will default to the product of the account. The loan account created in this way will be used to further service the loan, for example. The balance of the account will be the outstanding principal issued to the customer. Interest will be charged on this balance according to the established schedule and pricing. It is possible to flexibly customize the sequence of payment of different types of %, penalties and debt.
The stages of processing a loan contract include :
- Creation of loan account / accounts, in accordance with the country's chart of accounts
- Initiation of the loan and setting up the repayment schedule
- Schedule payments
- Management of collections and delinquencies, transfer to legal proceedings
- Processing loan status changes
- Making loan modifications