Loan Request Repayment

The Loan Request Repayment function allows you to record a repayment against a Loan Request created for Peer-to-peer or Syndicated Loans.

When a borrower makes a repayment with reference to a Loan request, Aura records the repayment and allocates the payment across the loan accounts linked to that loan request.

The allocation of the repayment amount is performed automatically based on the Repayment Allocation preference defined in the Loan Request. Aura supports the following allocation methods:

  • Priority Allocation - The repayment amount is applied to the oldest overdue installment based on the priority order as of the selected Due Till date.

  • Proportionate Allocation - The repayment amount is distributed proportionately across all related loan accounts based on their outstanding dues as of the Due Till date.

After the repayment is approved, Aura creates repayment events for the respective loan accounts and updates the loan payment schedules accordingly.

The Loan Request Repayment page has the following tabs that are in view-mode and are not editable:

To add a new Loan Request Payment,

1. From the Retail menu, click Peer to Peer, Loan Request and then Loan Request Repayment. The Loan Request Repayment search page appears.

2. Click Add. The New Loan Request Repayment → Profile (1/3) page appears.

3. Select the Client associated with the Loan request by clicking on the hyperlink. The Client search page appears where you can search for a client from the available list of active clients maintained in CRM → Clients → Maintain. You can also input the client name and select the required client from the list displayed.

4. Loan Request ID - Select the Loan Request for which the repayment is being made. Aura displays all committed loan requests maintained in Retail → Peer to Peer → Loan Request → Maintain.

5. Due Till - Enter or select the date up to which the repayment is considered.

6. Amount - Enter the repayment amount. The value must be numeric, greater than zero, and cannot be negative. The amount is displayed in currency of the selected loan request.

Note: If the entered Amount is greater than the outstanding due for the selected loan request as of the Due Till date, Aura displays "Amount is greater than due till" error.

7. Click Next. The New Loan Request Repayment → Allocation (2/3) page appears.

In this step, Aura automatically allocates the repayment amount across the loan accounts associated with the selected loan request.

The allocation is calculated based on the Repayment Allocation method defined in the Loan Request.

The displayed fields are:

  • Account # - Displays all the loan accounts associated with the selected loan request where the account status is not Closed.

  • Repayment Allocation - Displays the repayment amount allocated to each loan account based on the allocation method.

  • Amount Paid - Displays the total repayment amount allocated across all accounts.

Allocation Logic

  • If the Repayment Allocation method is Proportionate, the allocation amount for each account is calculated using the following formula:

  • Amount x (Due at account as of Due Till date) ÷ (Total due amount of the loan request as of Due Till Date)

  • If the Repayment Allocation method is Priority, the repayment amount is allocated to the oldest overdue installment first in the defined priority order as of the Due Till date.

  • If no allocation is applicable for a specific account, Aura displays 0.00

Note: If the Amount paid is less than the entered Amount, Aura displays "Amount paid is less than the amount" error.

8. Click Next. The Loan Request Repayment → Confirmation (3/3) page appears, summarizing all the details for your review.

9. Click Finish. The Loan Request Repayment Maintenance page appears, showing the newly created record.

Functions: Add, Search, Delete, Approve.

Status of the record is Pending till it is approved by another user. On approval, the tab status is set to Approved and the red bubble disappears.

To View/ Search a Loan Request Repayment record,

1. From the Retail menu, click Peer to Peer, Loan Request and then Loan Request Repayment. The Loan Request Repayment search page appears. Initially, no records will be displayed.

You can search for records using one or more of the following criteria - Loan request ID, Amount Paid, Client #, Client Name, Currency, Due Till, Status, Transaction ref no.

For example, select the Client Name as search criteria and enter the Client's name in the given textbox and click Search. All records available in Aura which satisfy the search criteria will appear on the page, as shown below:

The fields that are shown on the grid are:

  • Transaction ref no. - The unique reference number for the repayment transaction.

  • Client # - The client's unique identification number

  • Client Name - The name of the Client

  • Loan Request ID - The ID of the original loan request

  • Currency - The currency of the repayment

  • Description - A brief description of the transaction

  • Amount paid - The total amount paid in the transaction

  • Due Till - The due date for the repayment

  • Status - The current status of the repayment (e.g., Pending)

Profile

The Profile tab is the default tab and displays the main details of the repayment transaction, such as the Client #, Loan Request ID, Amount Paid. These fields cannot be edited.

Functions: Delete, Approve.

The various fields that appear on the Profile page are:

  • Client #: This is the serial number that uniquely identifies the client.

  • Loan request id: This is the id number that uniquely identifies the particular loan request, and is maintained in Retail → Peer To Peer → Loan Request → Maintain.

  • Amount paid: This is the total amount paid or to be paid for the particular loan repayment.

The additional fields that appear in the Profile page are:

  • Added: This indicates the date and time in which the record was added/created.

  • Added by: This specifies the id name of the user that added/created the record.

  • Approved: This indicates the date and time in which the record was approved. This field will be displayed only for approved records.

  • Approved by: This specifies the id name of the user that approved the record. This field will be displayed only for approved records.

The Delete button deletes the repayment record. This option is available only when the status is Pending.

Approve: Approves the repayment transaction and changes the status to Approved from Pending.

When the repayment is approved:

  • Aura generates LNPAYS event for the respective Loan Accounts where the allocated repayment amount is greater than zero.

  • Payment details are inserted into the Loan Payment Schedule.

  • The repayment amount is allocated across loan components according to the repayment order defined in the loan product.

Allocation

The Allocation tab displays the repayment distribution across the loan accounts associated with the loan request.

This tab is view-only and shows the allocation amounts that were calculated during repayment creation.

This tab is view-only and shows the allocation amounts that were calculated during repayment creation.

Relationship with the Loan Repayment Screen:

Loan accounts created through a Loan Request also appear in the standard Loan Repayment screen.

If you process a repayment through the normal Repayment screen by selecting the loan account directly, Aura treats the transaction as an individual loan account repayment.

In this case:

  • The Loan Request Repayment allocation logic is not applied.

  • The repayment is processed only for the selected loan account.