Create New Loan – Standard Method


In our Loan Management System (LMS), there are dozens of settings and options that you can use to configure each loan. Understanding these settings as you create new loans will set you up for success.

There are three ways to create a new loan in the system:

  • The Standard Method has you manually enter loan information.
  • Preconfigured Loans use preset templates, which you can then edit for an individual loan.
  • The Custom Onboarding Process lets you change the order in which you enter loan information.
  • Imports let you enter loan information into a .csv file, and then bring them all into the system at once.

Each method really just customize the loan creation process to make it more convenient; ultimately, all the same information will be entered on each loan. This article will walk you through the standard creation process, explaining the basics and linking to other articles that explore any niche areas. Regardless of how you plan to create loans, this article will be a good starting point.

The Standard Creation Method

To create a new loan by the standard loan creation process, first open up the Loan Manager inside your company account. In the top right corner, click the blue "New Loan" button, then select "Standard".

This will take you to a page where you can choose a loan category. The category won't change the options available to you, but will set the loan up with defaults specific to each type.

Configuring a Loan

The first step in creating a loan is to configure it's basic info. Here's a breakdown of each field:



Loan ID Option

You can select either a System Generated ID, or choose to create a custom one yourself.

Automatic and Custom Loan IDs
Custom loan IDs are useful because they can store information. Auto lenders might want a Vehicle Identification Number (VIN) to be a part of each loan ID, or lenders might want a prefix or suffix showing the associated Source Company. Automatic IDs are obviously useful because the system manages everything. With Custom Numbering, you get the best of both worlds — the system will automatically generate loan IDs that look exactly how you like. Custom numbering is set up in Settings > Loan > Labeling > Custom Numbering.

Loan ID

If you've selected a custom ID in the last field, this is where you'll actually enter it in. If you selected a system generated ID, you'll see the ID, but won't be able to edit it.

Loan Type

The loan type determines how the loan will be repaid. The options include:

What options are available?
The options include:
• Credit Limit – With this option, the customer has a credit limit and can both repay the loan and receive additional advancements up to the credit limit.
• Installment – This is the most typical options, where mostly-uniform payments will be repaid over a specified loan term.
• Flooring – This type is given to a company to finance their inventory. Payments are called 'curtailments' and the loans are usually short-term.
• Lease – A typical lease will rent an automobile or other collateral to a borrower. This option will use the typical lease payment calculation.

Calculation Type

This option helps determine how the interest portion of a payment will be calculated.

What options are available?
These options are covered with greater depth in our Calculation Type article, but here's a quick run-down:
• Interest Only – This option will calculate payments equal to the amount of interest that accrues on the loan balance in a single payment period.
• Rule of 78s – A simpler, but less accurate, way of calculating interest.
• Simple Interest – This option will calculate payments and interest in the standard way. Interest on the loan and interest allocation of individual payments will change depending on whether payments are made on time.
• Simple Interest Locked – This will calculate interest in the same way as Simple Interest, but the borrower will only pay that amount of interest, no more, no less.

Source Company

The company that referred the customer to you, or the brick-and-mortar location where the loan originated.


Groupings that you create for your accounts.

Agent User

An employee within your company assigned to the loan.

Once you have filled out this information, click 'Next' in the bottom right hand corner.

Assigning Collateral

On the next screen, you can enter collateral for the loan. If the loan is unsecured, just hit 'Next' again. If it is secured, click 'Add Collateral'. Regardless of the type of loan you selected, you can choose from Automobile, Consumer, Real Estate, and Other collateral types, which each bring up several fields to input collateral information. (These fields can be customized for each type — see our article Using Collateral Fields.)

If the loan is secured with more than one piece of collateral, you can hit 'Add Collateral' again. You can link a single loan with up to 50 items. Once the collateral info looks good, hit 'Next'.

Assigning a Customer

The third step in the standard loan creation process lets you assign a customer to the loan. This step is not required, but it is very likely that you will want to assign a customer. You can either create a new customer or you can link an existing customer. To create a new customer, click 'Add Customer' and enter in the customer’s information

To link an existing customer, click 'Link Existing Customer'. This will pull up a list of all the customers you've entered into the system. Click the checkbox to the right of any customers you want to link, then click 'Link'.

When you are done creating or linking customers, click 'Save' in the bottom right corner. This will create the new account in your system and bring you to a page for entering loan data.

Loan Data

Once the basic setup wizard is done, it'll leave you on the Setup Terms screen. (And you can always get back to this screen by the loan from the loan manager, then using the navigation pane on the left to go to Account Setup > Setup Terms.)

You'll need to enter data in the Loan Terms page to activate the loan, but the other pages (Loan Terms, Escrow Calculator, Additional Information, Advanced Configuration, and Late Fee Configuration) are all optional. Once you have added the information, click 'Save & Calculate'. This will save your loan data and calculate your schedule of payments and APR.

If the calculated schedule of payments isn’t what you expected it to be, or if you need to change some things to comply with the Truth In Lending Act, you can use some of LoanPro’s tools to help you calculate the payment amount, payment schedule, or APR that you need.

Payment Amount - If your target is a payment amount, you can use the Roll Payment tool. This tool will let you choose which of your loan terms to alter in order to arrive at a specified payment amount.

Payment Schedule - If you want to alter the payment schedule, you can use either the schedule roll tool the force tool or the smooth tool. These will help you customize your payment schedule including payment amount and interest rate. You can even choose to have varying payment amounts and interest rates each payment period.

APR - If you need to have your APR be under a certain percentage in order to meet legal requirements, you can use the APR Targeting tool. This tool lets you specify an APR and will then alter either the interest rate or escrow total on the loan to arrive at the closest APR without going over.

Once your loan has been saved and the numbers calculated, click the Activate button in the lower right corner.

What's Next

From here, you can add any additional information you want about the loan by navigating the different loan tabs. This includes customer information, payments, charges, collateral information, insurance information, and more.

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