Loan Security Status
Overview
Below is a business-focused explanation of the Loan Security Status report, written for practical use in Dafater.
Loan Security Status – Business Overview
What Business Information This Report Provides
The Loan Security Status report gives a consolidated view of all securities pledged against loans and their current status. It helps the business understand whether each loan is properly secured, the type and value of securities held, and whether those securities are active, released, or pending action.
This report acts as a risk visibility tool, showing how well the loan portfolio is protected by collateral at any point in time.
When and Why to Use This Report
You should use this report when: - Reviewing the risk exposure of the loan portfolio - Ensuring loans are adequately secured before disbursement - Monitoring released or expired securities - Preparing for internal audits or compliance reviews - Supporting credit review or loan renewal decisions
It is especially useful during periodic risk assessments, management reviews, and regulatory or internal audits.
Key Columns and Their Business Meaning
While exact columns may vary, the report typically includes the following business-relevant information:
Loan ID / Loan Number
Identifies the loan associated with the security.Customer / Borrower
Shows who has provided the security and is responsible for the loan.Security Type
Indicates the nature of the collateral (e.g., cash deposit, property, asset, guarantee). This helps assess liquidity and risk quality.Security Value
The assessed or approved value of the security. Used to evaluate whether the loan is sufficiently covered.Loan Outstanding Amount
Shows the remaining loan balance to compare against security value.Security Status
Indicates whether the security is Active, Released, Expired, or Pending. This is critical for risk monitoring.Pledge / Allocation Date
Shows when the security was linked to the loan, useful for tracking timelines.
Available Filters and Their Business Purpose
Common filters help narrow the report to specific business needs:
- Loan – Focus on securities for a particular loan
- Customer – Review all securities provided by a specific borrower
- Security Type – Analyze exposure by type of collateral
- Security Status – Identify active, released, or problematic securities
- Posting or Date Range – Review securities created or changed within a specific period
These filters allow managers to quickly focus on high-risk areas or specific portfolios.
How to Interpret the Results for Business Decisions
Security Value vs. Loan Outstanding
If the security value is lower than the outstanding loan amount, it may indicate under-collateralization and higher risk.Inactive or Released Securities on Active Loans
Signals a serious control issue that may require immediate action.Concentration by Security Type
Heavy reliance on one type of security may expose the business to valuation or liquidity risk.Pending or Expiring Securities
Highlights loans that may soon become unsecured if not addressed.
Common Use Cases and Scenarios
Credit Risk Review
Credit managers use this report to ensure loans remain properly secured throughout their lifecycle.Audit and Compliance Checks
Auditors review this report to confirm that securities are documented, active, and aligned with loan balances.Loan Renewal or Restructuring
Used to verify existing collateral before approving renewals or changes.Portfolio Monitoring by Management
Senior management uses the report to assess overall collateral coverage and risk exposure.Operational Follow-up
Operations teams use it to identify securities that need renewal, revaluation, or corrective action.
Business Value Summary
The Loan Security Status report in Dafater is a critical control and decision-support tool. It ensures loan risks are properly mitigated, helps maintain compliance, and supports informed credit and portfolio management decisions.
Report Information
- Module: Loan Management
- Related DocType: Loan Security
- Report Type: Script Report
- Standard: Yes