To create a product, follow the steps below.
1. Go to LMS – Create product.
When creating a product, you need to fill out the fields in 4 tabs:
- Insurance rules
- Accrual rules
- Repayment distribution rules
2. Fill out the fields in the Product tab.
Type – types of loan:
- PDL – a loan is issued for a small number of days and interest is accrued daily.
- BNPL – a loan is used for integration with an online store. For example, a client buys a product on credit: we pay for the purchase, the online store ships the product, and the client then pays us for the purchase.
- Cash – a traditional loan where we directly lend money to the client.
Accrual time – here you can specify the accrual period: at the beginning or at the end of the transaction day.
Repayment distribution type – here you can specify how we distribute the loan repayment: when funds are actually received from the client or according to the repayment schedule (for example, according to the schedule the client should repay the loan on the 30th, but he repaid on the 25th, then we wait for the 30th).
Minimal и maximum amount – the loan limits (from and up to a certain amount) for a given product.
Term type – the period into which the loan is divided. The accrual aligns with it. That is, accrual occurs within the period (day / week / month, etc.).
Minimal и maximum term – the limits of the period for which a loan is issued.
Schedule type – the repayment schedule:
- One payment – when the client takes out a loan and fully repays it in one payment for a specific date.
- Classic – a repayment schedule where the amount of the monthly payment is gradually decreasing from a maximum at the beginning of the term to a minimum at the end of the term
- Annuity – a repayment schedule where the amount of the monthly payment remains unchanged throughout the term of the contract.
Document templates – here you select the name of the document created in the previous step. In our case, it’s a Student Loan Agreement.
Once you have filled out all the fields in the Product tab, click Next.
Insurance rules – in this tab you can specify information regarding insurance.
Accrual rules – this tab contains the accrual rules.
Name – the name of the rule to easy navigate when there are numerous rules in CRM.
Accrual type – the type of accrual (once when issuing a loan, within the period or on a daily basis).
Accrual base – the interest accrual base (on the loan body, on the balance, on a fixed amount).
Rate / Amount – the interest rate (lending rate).
Once you have filled out all the fields, click Next.
Repayment distribution rules – the loan repayment distribution rules. Here you can specify the sequence in which the repayment is distributed.
Then click Send.
Great! You’ve created a loan product. You will see it in the general list of products.