How to change the status of (approve, close) loan accounts

Partial Application

Save the loan account in this status when:

The information entered is not complete; or

Is required by the MFI as part of the loan approval process; or

Want to save it with this status for the time being.

Most loan account attributes can be modified when the account is in this status.

Use the Save for later button when saving the loan account

Pending Approval

This is an optional status showing that loan account information is complete information.  This status allows the MFI to execute offline process with regard to the loan account before approving it in the system.

The loan account can be cancelled when it is in this status.

Use the Submit for Approval button when saving the loan account

Approved

The loan amount and repayment schedule have been approved by the MFI. All loan account parameters including the interest amount, loan term and funding source of the account are frozen and cannot be changed at this state

The loan account can be cancelled when it is in this status.

Disbursed to LO

This is an optional state showing that the loan amount has been disbursed to the loan officer of the customer.

The loan account can be cancelled when it is this status.

Active in good standing

1. Can be changed to this status once the loan has been disbursed to the customer.
2. The Actual disbursement date can be entered at this point and the loan account grace period starts counting where applicable.
3. This status confirms that the loan has been issued to the client.

Closed - Rescheduled

A loan can be rescheduled if the MFI allows rescheduling. The current loan account has to be closed with the status marked as Closed- Rescheduled, and a new loan account must be created; it can have the same or different conditions and rules compared to the previous loan.

The system will not link the old and new accounts.

Transactions can still be applied to accounts in this status, but the user will be given a warning before proceeding.

In performance reporting and other reporting, this loan will not be counted as part of the loan cycle.

Closed - Obligations met

1. The system moves the account to this state automatically when the loan amount is completely paid off.
2. The account can be moved to this status manually without validating if the amount has been paid off.

Active- Bad standing

The system moves to this status any time the loan account terms are violated, for example, if there is nonpayment of an installment.

The system automatically moves the account to Active in Good Standing once the amount overdue has been paid.

Closed- Written Off

The loan account can be written off if the MFI or Loan Officer  determines that the loan cannot be repaid.

Cancelled

A loan can be cancelled before it gets to Active and in Good Standing status.  The loan can be cancelled if the customer withdraws the application or an officer of the MFI rejects the application.