Loans
Understanding Loan Management in timveroOS
timveroOS provides comprehensive loan servicing capabilities through automated management of active credit products. Once an application is approved and converted to a loan, the system handles all aspects of the loan lifecycle from disbursement through payoff.
Core Loan Concepts
A Loan (technically stored as a Credit entity) represents an active lending product with a borrower. Each loan maintains:
Complete linkage to the originating application and all participants
Current terms including principal amount, interest rate, and payment schedule
Real-time balance tracking across multiple components
Comprehensive transaction history for audit and servicing needs
The system supports various loan types configured for your institution's needs, from simple consumer loans to complex commercial products with custom terms.
How Loan Servicing Works
Automated Payment Processing
When borrowers make payments, the system automatically:
Applies funds according to configured allocation rules
Updates all relevant balances in real-time
Generates transaction records for complete audit trails
Triggers any necessary status changes or notifications
Balance Component Management
The platform tracks multiple balance types within each loan to provide complete visibility:
Principal Balance: The remaining amount borrowed
Interest Balance: Accrued interest awaiting payment
Fee Balances: Various charges like late fees or service fees
Past Due Amounts: Overdue portions tracked separately for collection purposes
This separation enables precise reporting and supports different payment allocation strategies.
Status and Lifecycle Management
Loan status automatically updates based on payment performance and configured rules:
Current loans with on-time payments
Delinquent loans with missed payments
Default status for severely past-due accounts
Paid-off status when fully satisfied
Benefits to Your Operations
Eliminate Manual Servicing Tasks
The automated calculation engine handles all routine servicing activities, freeing staff to focus on customer service and exception handling rather than manual calculations and posting.
Ensure Compliance and Accuracy
Every transaction follows configured rules consistently, maintaining compliance with regulations and internal policies while eliminating human error in payment processing.
Provide Real-Time Visibility
Staff can instantly view current loan status, payment history, and projections, enabling better customer service and informed decision-making.
System Capabilities
Payment Management
Automated payment posting and allocation
Support for various payment methods and channels
Partial payment handling
Overpayment and credit balance management
Account Modifications
Interest rate adjustments
Payment date changes
Term modifications
Forbearance and deferment options
Reporting and Analytics
Payment history reports
Aging analysis
Portfolio performance metrics
Individual loan statements
Integration Features
Core banking system synchronization
Payment processor connections
General ledger posting
Customer portal data feeds
Practical Implementation Patterns
Standard Consumer Loan Pattern
Most consumer loans follow a straightforward servicing pattern:
Loan activates with initial terms from approved application
Monthly payments process automatically on scheduled dates
System calculates and posts interest daily
Late fees apply automatically if payments missed
Status updates reflect current payment performance
Modified Loan Pattern
When borrowers face difficulties, the system supports modifications:
Staff initiates modification workflow
New terms configured (rate, payment, schedule)
System recalculates remaining balances
Modified payment schedule takes effect
Original terms preserved for audit purposes
Complex Security Pattern
For loans with multiple security types:
Primary loan linked to multiple participants (borrower, guarantors)
Collateral assets tracked separately with their providers
System monitors all security elements
Release procedures automated when conditions met
Cross-default provisions enforced automatically
Configuration Framework
Loan Product Setup
Define loan types with specific:
Interest calculation methods (simple, compound, rule of 78s)
Payment allocation rules (principal first, interest first, proportional)
Fee structures and triggers
Status transition rules
Servicing Rules Configuration
Establish operational parameters:
Grace periods for late payments
Delinquency bucket definitions (30, 60, 90+ days)
Charge-off criteria
Statement generation schedules
Account Structure Definition
Configure balance tracking:
Account types for different balance components
Aging rules for past due movement
Interest accrual parameters
Fee assessment logic
Implementation Resources
Through the Admin Panel
(No setting in the Admin Panel)
Through the SDK (Step 1)
For specialized loan servicing requirements:
Credit Management System - Core loan entity handling
Credit Operations Framework - Transaction processing and balance management
Key Considerations
Design Principles
Loans are active products derived from approved applications
All servicing follows configured rules automatically
Complete audit trails maintained for compliance
Flexible framework supports various loan types
Operational Excellence
Reduced manual intervention through automation
Consistent policy application across all loans
Real-time balance accuracy for better decisions
Comprehensive reporting for portfolio management
System Integration
Seamless connection to origination process
Automated data flow from applications
Synchronized updates across all systems
Unified customer view across products
Related Topics
Applications - How loans originate from applications
Product Management - Configuring loan products
Document Management - Loan documentation handling
Notifications - Payment reminders and communications
Status Management - Loan status configuration
timveroOS: Automated loan servicing for operational excellence
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