Loan Transfer
Overview
Below is a business-focused explanation of the Loan Transfer document as used in Dafater.
What the Loan Transfer is Used For
The Loan Transfer document is used to officially move an existing loan from one party or account to another within Dafater. This could involve transferring a loan between customers, branches, internal portfolios, or responsible entities, depending on how your organization manages loans.
Its main purpose is to ensure that loan ownership, responsibility, and future repayments are reassigned accurately while maintaining a clear audit trail and business continuity.
Prerequisites Before Using Loan Transfer
Before creating a Loan Transfer, the following should be in place:
- An active loan that is eligible for transfer
- Clear business approval or policy allowing the transfer
- The new receiving party or account must already exist in Dafater
- All outstanding balances, repayment status, and terms must be reviewed and agreed upon
- Required internal authorizations (for example, credit, finance, or management approval)
These prerequisites help avoid disputes, errors in balances, or compliance issues.
Typical Workflow and Business Process Fit
A Loan Transfer usually follows this business flow:
Transfer Request Initiation
The transfer is initiated due to a business need such as restructuring, customer request, or internal reallocation.Review and Approval
Relevant teams review the loan details, outstanding amounts, repayment history, and transfer justification.Execution of Loan Transfer
Once approved, the Loan Transfer document is created to formally move the loan to the new party or account.Continuation of Loan Lifecycle
After the transfer, repayments, penalties, and reporting continue under the new ownership without interruption.
This process ensures smooth continuity while preserving financial accuracy and accountability.
Key Business Scenarios Where Loan Transfer Is Essential
The Loan Transfer document is commonly used in situations such as:
- Transferring a loan from one customer to another due to asset sale or legal agreement
- Moving loans between branches, departments, or internal portfolios
- Restructuring loans during mergers, acquisitions, or organizational changes
- Assigning loans to a different responsible entity for collection or management
- Handling special cases such as inheritance, business ownership change, or refinancing arrangements
In all these cases, the Loan Transfer provides a controlled and documented way to manage change.
Important Considerations for Users
When working with Loan Transfer, users should keep in mind:
- The transfer does not erase loan history; it preserves past transactions and performance
- Outstanding balances and repayment schedules must be verified before transfer
- Transferring a loan may impact reporting, customer exposure, and risk assessments
- Proper documentation and approvals are critical for audit and compliance purposes
- Communication with all affected parties is essential to avoid confusion or disputes
Using the Loan Transfer correctly ensures transparency, compliance, and continuity in loan management operations.
If you would like, I can also explain how Loan Transfer impacts repayments, reporting, or customer statements from a business perspective.
Basic Information
- Module: Loan Management
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| applicant | Applicant | Link | Customer | Customer requesting loan transfer | |
| company | Company | Link | ✓ | Company | Company managing the loan transfer |
| transfer_date | Transfer Date | Date | ✓ | - | Effective date of loan transfer |
| from_branch | From Branch | Link | ✓ | Branch | Branch transferring the loan out |
| to_branch | To Branch | Link | ✓ | Branch | Branch receiving the transferred loan |
| loans | Loans | Table | Loan Transfer Detail | List of loans included in this transfer | |
| amended_from | Amended From | Link | Loan Transfer | Original loan transfer being amended |
Child Tables
Loans (Loan Transfer Detail)
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| loan | Loan | Link | Loan | Select the loan being transferred within Dafater. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
| Loan Manager | ✓ | ✓ | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Journal Entry | Linked from | Accounts |
| Branch | Links to | Setup |
| Company | Links to | Setup |
| Customer | Links to | Selling |
| Loan Transfer | Links to | Loan Management |