Loan
Overview
Loan – Business Overview
The Loan document is the central business record used to manage Dafater activities in Dafater. It captures all commercial, financial, and operational details of a loan provided to a customer, from approval through disbursement, repayment, and closure. This document acts as the single source of truth for tracking the lifecycle of each loan and ensuring consistent, compliant loan management.
Purpose in Business Operations
The Loan document is used to: - Record approved loans issued to customers or internal beneficiaries - Define loan terms such as amount, tenure, interest, and repayment structure - Track loan status throughout its lifecycle - Serve as the basis for repayment schedules, collections, and financial reporting - Support transparency, accountability, and audit readiness in Dafater operations
It ensures that every loan is managed in a structured, controlled, and traceable manner.
Prerequisites and Setup Requirements
Before creating a Loan, the following business elements should be in place: - A registered customer or borrower profile - Defined loan products or loan types with standard terms - Approved Dafater policies and eligibility criteria - Interest calculation rules and repayment methods - Required approvals or authorizations within the organization
These prerequisites help ensure loans are issued consistently and in line with company policy.
Typical Workflow and Business Process Fit
The Loan document follows a clear business flow:
Loan Application Review
The borrower’s eligibility and requested terms are assessed.Loan Creation
A Loan record is created with approved terms such as amount, interest, tenure, and repayment frequency.Approval
The loan is reviewed and formally approved by authorized personnel.Disbursement
Funds are released to the borrower according to agreed terms.Repayment Tracking
Installments, interest, penalties, and outstanding balances are monitored throughout the loan period.Closure or Completion
Once fully repaid, the loan is closed. In exceptional cases, it may be restructured or written off based on policy.
This workflow ensures loans are controlled, traceable, and aligned with financial governance standards.
Key Business Scenarios Where Loan Is Essential
The Loan document is critical in scenarios such as: - Issuing personal, business, or employee loans - Managing installment-based financing or credit facilities - Tracking repayments and overdue amounts - Supporting customer credit relationships over time - Producing financial, risk, and portfolio performance reports - Handling loan renewals, restructures, or early settlements
Without the Loan document, consistent loan tracking and reporting would not be possible.
Important Considerations for Users
- Always ensure loan terms are accurate before approval, as they drive repayments and financial reporting.
- Monitor loan status regularly to identify overdue or at-risk accounts early.
- Follow internal approval and compliance guidelines strictly.
- Keep borrower information up to date to avoid collection or communication issues.
- Review closed loans for insights into portfolio performance and risk trends.
In summary, the Loan document is a foundational business tool in Dafater’s Loan Management module. It enables structured Dafater, clear accountability, and effective financial control across the entire loan lifecycle.
Basic Information
- Module: Loan Management
- Document Type: Document
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| applicant_type | Applicant Type | Select | ✓ | Employee, Member, Customer | Type of applicant requesting the loan in Dafater |
| applicant | Applicant | Dynamic Link | ✓ | applicant_type | Linked applicant record based on selected applicant type |
| applicant_name | Applicant Name | Data | - | Display name of the loan applicant | |
| loan_application | Loan Application | Link | Loan Application | Source loan application linked to this loan | |
| company | Company | Link | ✓ | Company | Company under which the loan is issued |
| posting_date | Posting Date | Date | ✓ | - | Date when loan entry is posted in Dafater |
| status | Status | Select | Draft, Sanctioned, Partially Disbursed, Disburs... | Current lifecycle status of the loan | |
| repayfromsalary | Repay From Salary | Check | - | Indicates loan repayment through salary deductions | |
| loan_product | Loan Product | Link | ✓ | Loan Product | Loan product defining terms, rules, and configuration |
| loan_amount | Loan Amount | Currency | Company:company:default_currency | Approved principal loan amount | |
| loan_partner | Loan Partner | Link | Loan Partner | External partner associated with this loan | |
| loan_category | Loan Category | Link | Loan Category | Business category or classification of the loan | |
| repaymentscheduletype | Repayment Schedule Type | Select | - | Method used to generate repayment schedule | |
| cancellation_date | Cancellation Date | Date | - | Date when loan was cancelled | |
| settlement_date | Settlement Date | Date | - | Date when loan was fully settled | |
| rateofinterest | Rate of Interest (%) / Year | Percent | ✓ | - | Annual interest rate applied to the loan |
| penaltychargesrate | Penalty Charges Rate | Percent | - | Penalty rate charged on overdue repayments | |
| disbursement_date | Disbursement Date | Date | - | Date when loan amount was disbursed | |
| disbursed_amount | Disbursed Amount | Currency | Company:company:default_currency | Total amount actually disbursed to applicant | |
| closure_date | Closure Date | Date | - | Date when loan account was officially closed | |
| maximumloanamount | Maximum Loan Amount | Currency | Company:company:default_currency | Maximum eligible loan amount for applicant | |
| issecuredloan | Is Secured Loan | Check | - | Indicates whether loan is backed by collateral | |
| istermloan | Is Term Loan | Check | - | Identifies loan as term-based loan | |
| repaymentstartdate | Repayment Start Date | Date | ✓ | - | Date from which repayments begin |
| repayment_method | Repayment Method | Select | , Repay Fixed Amount per Period, Repay Over Num... | Defines repayment calculation approach | |
| repayment_periods | Repayment Periods | Int | - | Total number of repayment periods | |
| monthlyrepaymentamount | Monthly Repayment Amount | Currency | Company:company:default_currency | Fixed monthly amount payable by borrower | |
| moratorium_type | Moratorium Type | Select | , EMI, Principal | Defines moratorium applied on EMI or principal | |
| moratorium_tenure | Moratorium Tenure | Int | - | Number of periods covered under moratorium | |
| repayment_frequency | Repayment Frequency | Select | Monthly, Daily, Weekly, Bi-Weekly, Quarterly, O... | Frequency at which repayments are scheduled | |
| treatmentofinterest | Treatment of Interest | Select | , Capitalize, Add to first repayment | How interest is handled during moratorium | |
| limitapplicablestart | Limit Applicable Start | Date | - | Start date for loan limit applicability | |
| maximumlimitamount | Maximum Limit Amount | Currency | Company:company:default_currency | Maximum credit limit allowed for the loan | |
| limitapplicableend | Limit Applicable End | Date | - | End date for loan limit applicability | |
| utilizedlimitamount | Utilized Limit Amount | Currency | Company:company:default_currency | Amount of loan limit already utilized | |
| availablelimitamount | Available Limit Amount | Currency | Company:company:default_currency | Remaining available loan limit amount | |
| dayspastdue | Days Past Due | Int | - | Number of days repayment is overdue | |
| classification_code | Classification Code | Link | Loan Classification | Regulatory or internal loan classification code | |
| classification_name | Classification Name | Data | - | Name of the assigned loan classification | |
| loanrestructurecount | Loan Restructure Count | Int | - | Number of times loan has been restructured | |
| watchperiodend_date | Watch Period End Date | Date | - | End date of loan performance watch period | |
| tenurepostrestructure | Tenure Post Restructure | Int | - | Revised loan tenure after restructuring | |
| cost_center | Cost Center | Link | Cost Center | Cost center associated with the loan | |
| loan_charges | Loan Charges | Table | Loan Disbursement Charge | Additional charges applied during loan disbursement | |
| disbursement_account | Disbursement Account | Link | ✓ | Account | Account used to disburse loan amount |
| payment_account | Payment Account | Link | ✓ | Account | Account used to receive loan repayments |
| loan_account | Loan Account | Link | ✓ | Account | Accounting ledger representing the loan balance |
| interestincomeaccount | Interest Income Account | Link | ✓ | Account | Account for recording earned interest income |
| penaltyincomeaccount | Penalty Income Account | Link | ✓ | Account | Account for recording penalty income |
| total_payment | Total Payable Amount | Currency | Company:company:default_currency | Total amount payable including principal and interest | |
| totalinterestpayable | Total Interest Payable | Currency | Company:company:default_currency | Total interest amount payable over loan tenure | |
| totalprincipalpaid | Total Principal Paid | Currency | Company:company:default_currency | Total principal amount repaid till date | |
| amended_from | Amended From | Link | Loan | Original loan reference if this is amended | |
| totalamountpaid | Total Amount Paid | Currency | Company:company:default_currency | Total amount paid by borrower so far | |
| is_npa | Is NPA | Check | - | Indicates whether loan is classified as NPA | |
| manual_npa | Manual NPA | Check | - | Manually mark loan as non-performing asset | |
| unmark_npa | Unmark NPA | Check | - | Remove NPA classification from the loan | |
| freeze_account | Freeze Account | Check | - | Freeze loan account from further transactions | |
| freeze_date | Freeze Date | Date | - | Date when loan account was frozen | |
| fldg_triggered | FLDG Triggered | Check | - | Indicates whether FLDG condition has been triggered | |
| fldgtriggerdate | FLDG Trigger Date | Date | - | Date when FLDG was triggered | |
| writtenoffamount | Written Off Amount | Currency | Company:company:default_currency | Loan amount written off as unrecoverable | |
| debitadjustmentamount | Debit Adjustment Amount | Currency | Company:company:default_currency | Debit adjustments applied to the loan account | |
| creditadjustmentamount | Credit Adjustment Amount | Currency | Company:company:default_currency | Credit adjustments applied to the loan account | |
| refund_amount | Refund amount | Currency | Company:company:default_currency | Amount refunded to the borrower | |
| excessamountpaid | Excess Amount Paid | Currency | Company:company:default_currency | Excess payment received beyond total payable |
Child Tables
Loan Charges (Loan Disbursement Charge)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| charge | Charge | Link | Item | Charge item applied during loan disbursement in Dafater. | |
| amount | Amount | Currency | - | Monetary value of the disbursement charge in Dafater. | |
| account | Account | Link | Account | Accounting ledger to record the disbursement charge in Dafater. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Employee | ✓ | |||||
| Loan Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Bulk Repayment Log | Linked from | Loan Management |
| Days Past Due Log | Linked from | Loan Management |
| Journal Entry | Linked from | Accounts |
| Loan Adjustment | Linked from | Loan Management |
| Loan Balance Adjustment | Linked from | Loan Management |
| Loan Demand | Linked from | Loan Management |
| Loan Disbursement | Linked from | Loan Management |
| Loan Freeze Log | Linked from | Loan Management |
| Loan Interest Accrual | Linked from | Loan Management |
| Loan Limit Change Log | Linked from | Loan Management |
| Loan NPA Log | Linked from | Loan Management |
| Loan Refund | Linked from | Loan Management |
| Loan Repayment | Linked from | Loan Management |
| Loan Repayment Repost | Linked from | Loan Management |
| Loan Repayment Schedule | Linked from | Loan Management |
| Loan Restructure | Linked from | Loan Management |
| Loan Security Assignment | Linked from | Loan Management |
| Loan Security Deposit | Linked from | Loan Management |
| Loan Security Release | Linked from | Loan Management |
| Loan Security Shortfall | Linked from | Loan Management |
| Loan Write Off | Linked from | Loan Management |
| Process Loan Classification | Linked from | Loan Management |
| Process Loan Demand | Linked from | Loan Management |
| Process Loan Interest Accrual | Linked from | Loan Management |
| Sales Invoice | Linked from | Accounts |
| Account | Links to | Accounts |
| Company | Links to | Setup |
| Cost Center | Links to | Accounts |
| Loan | Links to | Loan Management |
| Loan Application | Links to | Loan Management |
| Loan Category | Links to | Loan Management |
| Loan Classification | Links to | Loan Management |
| Loan Partner | Links to | Loan Management |
| Loan Product | Links to | Loan Management |