Loan Application
Overview
Below is a clear, business-focused explanation of the Loan Application document in Dafater, written for operational and decision-making users.
What the Loan Application Is Used For
The Loan Application is the starting point of the loan lifecycle in Dafater. It is used to formally capture a borrower’s request for a loan, including the requested amount, purpose, repayment terms, and borrower details.
From a business perspective, this document allows organizations to: - Record and standardize loan requests - Assess borrower eligibility and risk - Control approvals before any funds are committed - Maintain an auditable record of loan demand
It acts as the foundation for all subsequent loan-related activities.
Prerequisites Before Using the Loan Application
Before creating a Loan Application, the following should already be in place from a business setup perspective:
- Borrower records: Customers, employees, or members who are eligible to apply for loans must already be registered in Dafater.
- Loan products or schemes: Predefined loan types with agreed terms such as interest rates, tenure options, and repayment rules.
- Approval authority structure: Clear internal roles for reviewing and approving loan requests.
- Business policies: Defined eligibility criteria, limits, and documentation requirements.
These prerequisites ensure consistency, compliance, and faster processing.
Typical Workflow and Business Process Fit
The Loan Application fits into the loan management process as follows:
Application submission
A borrower or officer creates a Loan Application with requested loan details and purpose.Initial review
Business teams review the application for completeness, eligibility, and alignment with company policy.Assessment and approval
The application moves through defined approval levels where creditworthiness, limits, and risk are evaluated.Decision outcome
- Approved applications move forward for loan issuance and disbursement
- Rejected or returned applications are documented for reference and compliance
Reference for future actions
Approved Loan Applications serve as the reference for creating the actual loan account and repayment schedule.
This structured flow ensures control, transparency, and accountability.
Key Business Scenarios Where the Loan Application Is Essential
The Loan Application is critical in scenarios such as:
- Employee loans for salary advances, personal needs, or emergencies
- Customer financing in retail, trading, or service businesses
- Microfinance or member-based Dafater programs
- Internal compliance tracking of loan demand and approvals
- Management reporting on loan requests, approvals, and rejection trends
In all these cases, the document ensures that Dafater decisions are properly recorded and justified.
Important Considerations for Users
When working with the Loan Application, users should keep the following in mind:
- Ensure all borrower details and loan terms are accurate before submission
- Follow company policies strictly to avoid approval delays
- Use clear loan purposes to support decision-making
- Remember that once approved, the application becomes a formal business commitment
- Maintain consistency, as this document may be reviewed during audits or management reviews
A well-prepared Loan Application reduces risk, speeds up approvals, and strengthens trust in the Dafater process.
In summary, the Loan Application in Dafater is a vital business document that controls how loans are requested, reviewed, and approved, ensuring responsible and well-governed Dafater operations.
Basic Information
- Module: Loan Management
- Document Type: Other
Workflow
Workflow Name: Loan Application
States
- Draft (Status: 0)
- Draft (Status: 0)
- Applied (Status: 0)
- Applied (Status: 0)
- Approved (Status: 1)
- Approved (Status: 1)
- Rejected (Status: 0)
- Rejected (Status: 0)
Transitions
- Draft → Submit → Applied (Allowed: Employee)
- Draft → Submit → Applied (Allowed: Employee Self Service)
- Applied → Approve → Approved (Allowed: HR Manager)
- Applied → Reject → Rejected (Allowed: HR Manager)
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| workflow_state | Workflow State | Link | Workflow State | Current approval stage of the loan application in Dafater workflow | |
| applicant_type | Applicant Type | Select | ✓ | Employee, Member, Customer | Category of applicant applying for the loan |
| applicant | Applicant | Dynamic Link | ✓ | applicant_type | Linked applicant record based on selected applicant type |
| applicant_name | Applicant Name | Data | - | Full name of the loan applicant | |
| company | Company | Link | ✓ | Company | Company under which the loan application is processed |
| posting_date | Posting Date | Date | - | Date when the loan application is recorded | |
| status | Status | Select | Open, Approved, Rejected | Overall approval status of the loan application | |
| customrepayfrom_salary | Repay From Salary | Check | - | Indicates whether loan repayments are deducted from salary | |
| loan_product | Loan Product | Link | ✓ | Loan Product | Selected loan product defining terms and conditions |
| istermloan | Is Term Loan | Check | - | Indicates whether the loan is a term-based loan | |
| loan_amount | Loan Amount | Currency | Company:company:default_currency | Requested principal loan amount | |
| issecuredloan | Is Secured Loan | Check | - | Specifies whether the loan is backed by collateral | |
| rateofinterest | Rate of Interest | Percent | - | Applicable annual interest rate for the loan | |
| description | Reason | Small Text | - | Business reason or purpose for requesting the loan | |
| proposed_pledges | Proposed Pledges | Table | Proposed Pledge | Details of assets proposed as collateral | |
| maximumloanamount | Maximum Loan Amount | Currency | Company:company:default_currency | Maximum eligible loan amount for the applicant | |
| customrepaymentschedule_type | Repayment Schedule Type | Select | - | Method used to generate the repayment schedule | |
| repayment_method | Repayment Method | Select | , Repay Fixed Amount per Period, Repay Over Num... | Defines how loan repayments will be calculated | |
| totalpayableamount | Total Payable Amount | Currency | Company:company:default_currency | Total amount payable including principal and interest | |
| customrepaymentstart_date | Repayment Start Date | Date | - | Date from which loan repayment begins | |
| repayment_periods | Repayment Period in Months | Int | - | Total number of monthly repayment periods | |
| repayment_amount | Monthly Repayment Amount | Currency | Company:company:default_currency | Amount payable per repayment period | |
| totalpayableinterest | Total Payable Interest | Currency | Company:company:default_currency | Total interest payable over the loan tenure | |
| amended_from | Amended From | Link | Loan Application | Reference to the original loan application if amended | |
| customrepaymentschedule | Repayment Schedule | Table | Loan Application Repayment Schedule | Detailed schedule of loan repayments |
Child Tables
Proposed Pledges (Proposed Pledge)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| loan_security | Loan Security | Link | Loan Security | Reference to the security proposed against the loan | |
| loansecurityname | Loan Security Name | Data | - | Display name of the selected loan security | |
| qty | Quantity | Float | - | Number of security units proposed for pledging | |
| loansecurityprice | Loan Security Price | Currency | Company:company:default_currency | Per unit market price of the loan security | |
| amount | Amount | Currency | Company:company:default_currency | Total value of the pledged security before haircut | |
| haircut | Haircut % | Percent | - | Percentage reduction applied to security value for risk | |
| posthaircutamount | Post Haircut Amount | Currency | Company:company:default_currency | Effective security value after applying haircut |
Repayment Schedule (Loan Application Repayment Schedule)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| payment_date | Payment Date | Date | - | Scheduled date borrower must make repayment in Dafater | |
| total_payment | Total Payment | Currency | Company:company:default_currency | Total installment amount due including principal and charges | |
| principal_amount | Principal Amount | Currency | Company:company:default_currency | Principal portion of installment reducing outstanding loan | |
| balanceloanamount | Balance Loan Amount | Currency | Company:company:default_currency | Remaining loan balance after this payment | |
| status | Status | Select | , Unpaid, Paid, Postponed, Written Off | Repayment status in Dafater lifecycle | |
| is_postponed | Is Postponed | Check | - | Indicates whether this installment is postponed | |
| newpaymentdate | New Payment Date | Date | - | Rescheduled payment date after postponement approval | |
| postponed_reason | Postponed Reason | Small Text | - | Business reason for postponing this repayment |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| Employee | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Loan Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Loan | Linked from | Loan Management |
| Loan Repayment Schedule | Linked from | Loan Management |
| Loan Security Assignment | Linked from | Loan Management |
| Company | Links to | Setup |
| Loan Application | Links to | Loan Management |
| Loan Product | Links to | Loan Management |
| Workflow State | Links to | Workflow |