A Loan Type is where you can define various loan types and their properties like rate of interest, loan account details, etc.
To access the Loan Type list, go to:
Home > Loan Management > Loan > Loan Type
1. How to Create a Loan Type
Enter Loan Name.
Enter yearly rate of interest to be charged on the principal amount.
Enter Mode Of Payment and account details.
Click "Save" to save the draft of the loan type.
Click "Submit" to submit the loan type
2.1 Creating Term Loans and Demand Loans
Is Term Loan: Is Term Loan specifies whether a Loan is a Term Loan or a Demand Loan. If this is unchecked any loan of this type will be considered as a demand loan and an automatic repayment schedule won't be generated for that loan.
Demand Loans are open ended loans which do no have a fixed repayment schedule or a fixed repayment amount.
Updated on: 27/03/2023