52 docs tagged with "lending"

Every loan account you create in Mambu is an instance of a loan product that has been created before. So, the terms that were set for the product...

There are three different types of index and tax rates you can set up for managing your loan and deposit products:

Based on the Central Bank's legislation in your country, you can define risk levels and the correspondent percentage of provision for each. Mambu...

When a loan account has been approved, the loan is ready to be disbursed.

Dynamic mortgage products are a type of capital repayment loan featuring equal installments and interest that is calculated on the **principal** +...

The "Edit Schedule" option is available for a loan account under the **More** options button, if the setup at the product level allows for it. For...

To learn more about the various configuration options when setting up this loan type, refer to [Configuring an Equal Installment Interest-Only...

Fee capitalization allows lenders to incorporate the fee directly into the loan's principal balance. When a fee is added to a loan, lenders have the...

If loan fractionalization is enabled, it will facilitate the capture of multiple funding accounts for a single loan account. It will then keep track...

The index rates that can be configured are interest rate, value added tax rate, and withholding tax. For more information, see [Customizing Index...

Sometimes, the time between the mortgage payments isn't a perfect, standard interval. This often happens in two key situations:

This setting can be found in the **Repayment Scheduling** section of the **Creating a New Loan Product** form and determines what happens to loan...

Whenever accrued interest is applied on an account, it means that the interest has been recognized as income in the case of loan accounts or...

Interest on loans is accrued on a daily basis, which allows you to charge your clients only for the days they used the loan amount.

Interest from arrears decoupling provides a method to separate regular interest from interest on arrears. In this context, interest on arrears...

The **Interest on Arrears** functionality allows lenders to identify and manage interest accrued on the arrears portion of a loan. This functionality...

The PMT Adjustment Threshold manages overpayments and interest rate changes in relation to upcoming instalments. If an overpayment or interest rate...

:::note Please note

When [setting up new loan products](/docs/setting-up-new-loan-products#create-a-new-loan-product), in the **Interest Rate** section of the form,...

In the **Internal Controls** section of the **Creating a new loan product** form, you can set up automatic internal controls for loans, such as the...

A 3rd party system must be notified when a loan account with a loan amount higher than 1 million goes into arrears. This will apply for individual...

From the moment you create a new loan account, it will go through different states, each of them with specific implications which are shown in the...

Balance information can be retrieved from a loan account via API v2 by using the [Loan Accounts - getById](/api/api-v2/loans/get-by-id) endpoint. The...

:::warning

Loan securities are used by organizations to secure or guarantee a part of the loan amount. If those loans are not repaid, the organization will be...

id: loan-products-configuration

Extract all the loans in arrears along with the late installments. Calculate the total late principal, late interest, late fee, late penalties, and...

Peer to peer lending differs from traditional lending on how the loans are funded. While in traditional lending it's the financial institution that...

Non-scheduled fee allocation offers enhanced flexibility for managing manual fees on loan accounts. This functionality allows you to apply fees to an...

With the *Current accounts*-type deposit product, you have the option to allow overdrafts. If you select this option, the accounts created under this...

When you *pay off* a loan, you make a prepayment that covers the whole amount due as of a given date, when the client wants to fully pay their loan...

Payment holidays allow banks to offer their customers a temporary break from payments, while interest still continues to accrue on the outstanding...

For both dynamic and fixed term loans you can choose a payment method based on a declining balance with the borrower paying the loan down in equal...

To provide greater flexibility in managing loan payments, especially in response to interest rate changes, overpayments or fee capitalization...

There are cases in which organizations may want to offer loans with a defined *payment plan*, meaning that they would specify a periodic payment for...

When a client makes an early repayment on a loan using the dynamic method, you can choose whether to recalculate the repayment schedule or not.

This functionality is supported for [dynamic mortgages](/docs/dynamic-mortgages). For [interest only loans](/docs/equal-installment-interest-only-loan

You can process single, partial, custom or bulk repayments. These may be entered in the present or backdated.

The Offset and Redraw capabilities are used for Dynamic Term loan products in Mambu. They automatically recalculate the interest due on the loan...

:::note

For cases of prepayments, partial repayments or fees and penalties payment, the allocation order defined at the product level will determine what...

When you enter a repayment, the amount of that repayment goes to the balances, meaning principal, interest, fees, and penalties based on the...

A 3rd party system must be notified about installments, which are due in 10 days, for all loan accounts held by individual clients in order to send...

When [creating a new loan product](/docs/setting-up-new-loan-products), you can control the extent to which loan schedules can be edited by selecting...

Revolving loans are mostly created the same way as other loan products. For more information, see [Setting Up New Loan...

Depending on the number of installments, some loan amounts end up with a small difference when divided by the installments.

The *Secondary Marketplace* is where you can sell and buy loan fractions, allowing a loan funder to sell a portion of the loan (or fraction) to a...

In order to make the **Securities** module available at loan account level, it has to be enabled at loan product level.

An overdraft occurs when money is withdrawn from a bank account and the available balance goes below zero. In this situation, the account is said to...

Learn about technical-overdraft, lending, overdrafts in Mambu.

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:

When a borrower fails to make a scheduled repayment on time, their loan is said to have *gone into arrears*. Depending on the [arrears...