Loan Repayment and Closure
Overview
Below is a business-focused explanation of the Loan Repayment and Closure report, written for operational and decision-making use within Dafater.
Loan Repayment and Closure Report
Module: Loan Management
Report Type: Analytical / Operational Report
Based on: Loan Repayment records
1. What Business Information This Report Provides
The Loan Repayment and Closure report gives a consolidated view of:
- Loan repayments made by borrowers
- Outstanding balances after each repayment
- Loans that are fully repaid and officially closed
- Repayment progress for active loans
It helps the business understand how loans are being serviced, which loans are nearing completion, and which loans have been fully settled. This report connects repayment activity with the final status of each loan.
2. When and Why to Use This Report
When to Use
- During monthly or quarterly loan portfolio reviews
- At period-end financial closing
- When tracking loan recovery performance
- Before initiating loan closure confirmations
- While reviewing customer repayment behavior
Why to Use
- To ensure repayments are being received as scheduled
- To confirm that loans are closed only after full repayment
- To identify delays, short payments, or early closures
- To support revenue recognition and outstanding balance validation
3. Key Columns and Their Business Meaning
Loan Reference
- Identifies the specific loan agreement
- Used to track repayment history and loan lifecycle
Borrower / Customer
- Shows who is making the repayment
- Useful for customer-level performance and follow-up
Repayment Date
- Date on which payment was recorded
- Helps assess timeliness of repayments
Repayment Amount
- Amount paid in a specific repayment transaction
- Indicates cash inflow from loan recovery
Principal Repaid
- Portion of the repayment applied to loan principal
- Shows reduction in actual loan exposure
Interest Repaid
- Portion applied to interest income
- Important for income tracking and profitability
Outstanding Balance
- Remaining amount after repayment
- Helps identify loans nearing closure or at risk of default
Loan Status
- Indicates whether the loan is:
- Active
- Fully Repaid
- Closed
- Confirms completion of loan obligations
Closure Date (if applicable)
- Date when the loan was officially closed
- Used for audit, reporting, and customer confirmation
4. Available Filters and Their Business Purpose
Loan
- Focus on a specific loan for detailed review
Borrower / Customer
- Analyze repayment behavior of a particular customer
Repayment Date Range
- Review repayments within a specific period
- Useful for monthly or quarterly analysis
Loan Status
- Filter between active, fully repaid, or closed loans
- Helps separate ongoing collections from completed loans
Company / Branch (if applicable)
- Assess performance across business units or locations
5. How to Interpret the Results for Business Decisions
Consistent repayments with reducing balances
→ Indicates healthy loan recoveryLoans with zero outstanding balance but not closed
→ Action required to complete loan closure processSlow reduction in outstanding balance
→ May signal repayment issues or restructuring needsHigh interest component vs principal
→ Indicates early-stage repayments or interest-heavy schedulesMany closures in a period
→ Positive cash recovery and portfolio turnover
6. Common Use Cases and Scenarios
Loan Portfolio Review
- Management reviews overall repayment performance and closures
Loan Closure Validation
- Operations teams confirm all dues are cleared before marking loans as closed
Financial Reporting Support
- Finance teams validate principal recovery and interest income
Customer Communication
- Used to respond to customer queries about repayment status or loan completion
Audit and Compliance
- Ensures loan closures align with repayment records
Summary
The Loan Repayment and Closure report in Dafater is a critical tool for tracking how loans are being repaid and finalized. It supports operational control, financial accuracy, and informed decision-making by providing clear visibility into repayment activity and loan completion status.
Report Information
- Module: Loan Management
- Related DocType: Loan Repayment
- Report Type: Script Report
- Standard: Yes