Loan Type Specific Defaults


There are two main types of loan defaults: loan type specific and user group. Loan type specific defaults let you designate what the defaults will be depending on the loan category and type (e.g. real-estate, installment loan). User group defaults let you create sets of loan defaults and then assign a set to any or all of your agent users. This article will cover loan type specific defaults only.

Loan type specific defaults will let you select settings that are available in the Account Setup area of a loan or lease account. However, you will not be able to default any of the loan terms. If you want to be able to set specific loan terms and settings, you should create a preconfigured loan.

Editing Loan Specific Defaults

To edit the loan specific defaults, navigate to Settings > Defaults > New Loan > Loan Type Specific inside your company account.

The first thing you should do is choose the loan category (automobile, consumer, real estate, other) and the loan type (installment, credit limit, flooring, lease) for which you want to set defaults.  Once you have done that, click  .

Now you have two sections of defaults you can set: Setup Terms and Loan Settings. Let’s look at the setup terms first.

Setup Terms

This section is divided into four parts: Loan Terms, Escrow CalculatorAdvanced Configuration, and Late Fee Configuration.

  1. The loan terms section lets you set the following defaults:



Payment Frequency

The time interval at which payments come due. The options are: monthly, semi-monthly, weekly, bi-weekly, annually, semi-annually, quarterly, single, and custom. Custom lets you choose the number of days in each payment period.

Interest Rate Type

This lets you specify the period of time over which your interest rate applies. Annually is the most common selection. Sometimes companies enter an interest rate for a different period. For example, if you offer loans with a 12% annual rate, the monthly rate would be 1%. If you choose monthly as the interest rate type, you would enter 1 as the interest rate instead of 12. The options are: annually, semi-annually, monthly, semi-monthly, weekly, and bi-weekly.

Use Tiers

This option lets you choose whether to use interest tiers. Interest tiers can be set up at Settings > Loan > Setup New Loan > Interest Tiers.

Last Day of the Month

This option lets you specify whether subsequent payments should fall on the last day of the month if the first payment date falls on the last day of the month, but it’s a day other than the 31st.

  1. The escrow calculator calculates how much escrow should be added to each of your loan payments.

  1. The advanced configuration lets you select options for how interest is calculated and how and when payments will come due and apply on loans.

  1. The late fee configuration section lets you choose how late fees should be applied on the loan.

Loan Settings

The Loan Settings section allows you to set defaults for general loan settings, convenience fees, and portfolios. For more information on the meanings and purposes of individual fields see the Loan Settings article.

Once you have made all the desired changes to the defaults, click  to save them.  Now when you create a new loan, with this loan category and loan type, the defaults you set here will be the defaults for the loan.

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