Applying for a loan

A loan starts as an application. Once it is submitted it goes into the approval queue.

Before you start

• The client must already exist and be active. See Clients and groups.
• Check the client's savings balance. Many organisations require a client to hold savings worth a set percentage of the loan before they can borrow (see Rules the system enforces). Savings are not collected on the application form, so any deposit must be recorded first, for example with Top up on the client's savings.

To create a new application

You can start an application in two ways:

• Go to Small Loans > Applications and select New Application, or
• Open the client's page and select the New Loan Application icon (the wallet icon next to the edit button). The client is then filled in for you.

The New Loan Application form opens. Fill it in as follows:

1. Client - start typing the client's name or client number and choose them from the list. Each row shows the client number (for example CL-...) and other details such as group and phone ending. Names are not unique, so always check the client number before you choose.
2. Group (optional) - if the loan is taken as part of a group, type to search and pick the group.
3. Requested Amount - the amount the client wants to borrow.
4. Term (days) - how many days the client has to repay. The form starts at 50 days.
5. Interest Rate - the interest rate for this loan, as a percentage. The form starts at 15; use the rate your organisation has set for this kind of loan.
6. Loan Purpose - what the money is for, in at least 10 characters.
7. Check the Loan Calculator on the right (see below).
8. Select Submit Application.

You will see "Application created successfully" and return to the applications list, where the new application has the status Submitted and a reference such as SL-2026-0001. Select Cancel to leave the form without saving.

note

The form does not have fields for the loan product, repayment frequency, guarantors or collateral. Every small loan is repaid in daily instalments.

The Loan Calculator

As you type, the Loan Calculator shows:

• Principal Amount, Interest Rate and Loan Term
• Total Interest - the amount borrowed multiplied by the interest rate
• Total Repayment - the amount borrowed plus the total interest
• Daily Installment - the total repayment divided by the number of days

The interest rate is a flat rate for the whole loan, not a yearly or monthly rate. For example, 100,000 borrowed at 15% over 50 days carries 15,000 of interest, so the client repays 115,000 in total, or 2,300 a day.

Form checks

The form will not submit until these are corrected. The message appears under the field:

Field	Message
Client	"Client is required"
Requested Amount	"Amount is required", "Minimum loan amount is 10,000", "Maximum loan amount is 5,000,000"
Term (days)	"Term is required", "Minimum term is 7 days", "Maximum term is 365 days"
Interest Rate	"Interest rate is required", "Minimum rate is 0.1%", "Maximum rate is 100%"
Loan Purpose	"Purpose must be at least 10 characters", "Purpose must be at most 500 characters"

Rules the system enforces

When you select Submit Application the system also checks the client against your organisation's lending rules. If a rule is not met, the application is not created and a message explains why. Which rules apply depends on your organisation's settings.

Rule	Message you will see	What to do
Savings cover. The client's savings must be at least a set percentage of the amount requested.	"Requested amount exceeds what your savings support. With savings of ..., the maximum loan is ... (savings must be at least ...% of the loan)."	Lower the amount to the maximum shown, or record a savings deposit first and try again.
Existing loan in arrears. The client has an active loan that is more than a set number of days behind.	"Loan SL-...-L is ... days in arrears. Bring it up to date before applying for another loan."	Collect the arrears on the existing loan first.
Unpaid fees. The client owes a fee that blocks lending, such as a registration or enrollment fee.	"This client owes ... in unpaid fees. Record the payment before continuing with the loan."	The fee must be paid before the loan can go ahead.

The unpaid-fees rule can be set to apply from application, from approval, or only at disbursement. Wherever it starts, it applies at every later step too. See Arrears, penalties and fees.

The system does not by itself stop a client holding more than one loan at a time. That is controlled only by the arrears rule above, where your organisation uses it.

Viewing applications

Small Loans > Applications (headed Loan Applications) lists every application with its Reference, Client, Amount, Term (days), Interest, Status and Date.

• Use the Status filter to show only one status, or All Statuses.
• Select a row, or the eye icon, to open the application.

The application page shows the Approval Progress steps, Client Information, Loan Details and the Approval History. The approve, reject and disburse buttons also appear here when the application is at the right stage; see Approving and rejecting applications and Disbursing a loan.

Application statuses

Status	Meaning
Submitted	Waiting for the Collection Officer review.
CO Approved	Passed the Collection Officer review; waiting for the Area Manager.
ALM Approved	Passed the Area Manager review; waiting for the Branch Manager.
BM Approved	Fully approved and ready to disburse.
Disbursed	The money has been paid out and the loan is active.
Rejected	Declined at one of the review steps. This is final.

caution

A submitted application cannot be changed or withdrawn from the screen. If the amount, term or rate is wrong, ask an approver to reject it with a reason, then create a new application with the correct details.

The pencil icon shown next to submitted applications in the list does not edit the existing application. It opens an empty New Loan Application form, and submitting that form creates a second application.