Types of Loan Products
Overview
The type of Loan Product can be selected when a new product is created. Mambu supports five type of loans as listed and explained below:
Fixed Term Loan
A type of product with Fixed interest payments, which are calculated at loan account creation and will not be recalcuated with prepayments.
Dynamic Term Loan
A type of product with Dynamically calculated interest payments, allowing for interest recalculation and reduction when prepayments are performed.
Interest-Free Loan
A type of product with no interest charged.
Tranched Loan
A type of product with Dynamically calculated interest payments, that allows for loan disbursement in a configurable number of tranches.
Revolving Credit
A type of product that allows multiple disbursements and repayments on the account, similar to an overdraft, except that it has a payment plan associated with it in which some amount of principal and interest may be paid.
Offset Loan
A type of loan product which allows for a dynamic interest calculation and enables the Redraw facility, ultimately allowing a borrower to withdraw money from the amount they've already prepaid. You can read more about this kind of loan product here.
Products can be made available to both Clients and Groups or to Solidarity Groups.
Ask the Mambu Community
If you have a question about how anything works or have come across something you haven't seen explained here, get in touch with our community of fellow users and Mambuvians where someone will lend a hand.
Ask a question about Lending
- If you don't already have an account you will be prompted to create one when you first visit the site.