Features

The automated capabilities in Jupical's loan management software can help finance professionals succeed in the digital era. The following list of platform features allows you to personalize them to meet your needs:

1. Customer Data Management

One of the most important features in any Loan software is the storage of data. Jupical’s LMS stores the customer data with information such as the amount borrowed, installment start dates, due dates. It also mentions the information of the agent who has worked hard to get the process of loan carried out in an appropriate manner.

Jupical’s LMS has automated validation checks to ensure completeness and accuracy of the applications received. It has a notification system as well to send updates to the loan borrowers.

2. Rate of Interest Type

Our pricing comes in two varieties.

Fixed Rate

We are unable to change the interest rate after the loan has been approved.

Variable Rate

Once the loan has been validated, we may use this functionality to change the interest rate whenever we need to by clicking the interest rate update icon.

Automate Interest Calculation

Interest calculation can be done in two ways for any financial business or organization.

Simple Interest

Only the original principal amount borrowed or invested is used to compute simple interest.

Because the interest rate is only based on the initial principal, it stays the same for the duration of the loan. This makes interest payments easier to calculate and comprehend because they are all the same.

Compound Interest

Compound interest is interest that is computed on both the original principal and the interest that has accrued over time.

Compound interest grows exponentially because interest is computed on both the principal and the interest that has accrued over time.

Thus, with each compounding period, the principal amount grows and the interest amount rises accordingly.

4. Round on End

The loan amount is taken into account when calculating loan installments when the round flag is activated.

If the flag is not checked, loan installments will automatically round if any number receives a decimal point.

5. Agent & Agent Commission (%)

We can issue an invoice for the agent commission and pay it as well thanks to our agent features for loans.

Additionally, we can see how much commission is paid to each employee as well as how much commission is charged for each loan.

6. Payment Mode Management

For loans, there are two ways you can pay.

Regular Installments

Regular installments or monthly installments is a simplified application procedure for debtors.

Monthly payments indicate that a single payment must be made to the lender each month by the borrower.

Usually, 12 payments are made annually as a result of this payment frequency. The due date for each monthly payment might be set, for example, on the first or fifteenth of each month.

Bi-Monthly Installments

By "bi-monthly payments," we indicate that the borrower must pay back the loan twice a month.

Usually, 24 payments are made annually as a result of this payment frequency. The due date of exact days on which payment is due each month such as first and the fifteenth, or any other dates that have been agreed upon.

Note: Month will only be computed based on 30 days, there could be a 15-day interval between two installments due dates, even if February has 28 days or March has 31 days.

7. Insurance and Taxation

It is possible to choose taxes and insurance, as well as to create products related to taxes and insurance.

An invoice for their loan taxes and insurance has been sent to them.

8. Postpone Installments

It is one of the most important features from a customer's perspective. Whenever the borrower wants to postpone any particular installment they can request the same and alter it.

There are 2 ways in which we can postpone any installment: By a certain number of days, By certain number of months by modifying the date and month respectively. The next installment will be calculated with a modified date.

The feature allows users to “charge a penalty” for postponing the installment. Regarding the postponement penalty, we have two choices.

1. Fixed: A fixed penalty rate may be applied.

2. Percentage:The overdue installments will automatically be charged a percentage-based fee that is determined daily.

The loan displays the updated installment amounts on our installment changes tab.

9. Properties

Users can be given more flexibility and personalized loan products that are made specifically for them. Under this section, they can create as per the needs. Below is a summary of the various loan structures that can be used:

Mortgage Loans: These are loans intended exclusively for the purchase of residential, commercial, or investment real estate. Because real estate is so valuable, mortgage loans are usually larger than other kinds of property loans. Loan amounts may differ based on the value of the property, the borrower's creditworthiness, and the amount of the down payment.

Auto Loans: Vehicle purchases, such as those of cars, trucks, motorcycles, and recreational vehicles, are financed with the help of auto loans. The cost of the car, the borrower's credit score, the loan term, and the down payment all affect the loan amounts for auto loans.

Personal Loans: Although not directly linked to any real estate, personal loans can still be tailored to cover costs associated with real estate, including down payments, repairs, and renovations. Personal loan amounts can differ significantly depending on the borrower's income, credit history, and stability.

Student Loans: These loans are intended to pay for living expenses, books, and other costs associated with education. Student loans have an indirect effect on a borrower's debt-to-income ratio, which can affect their eligibility for other property loans, like mortgages, even though they are not directly related to property ownership.

Every kind of loan product will have particular terms and conditions as well as qualifying requirements. Lenders can better meet the diverse needs of their customers and provide them the financial solutions they need to achieve their goals by offering customized loan products made for different kinds of properties.

Workflow

The following is a workflow for loan management Applicatio Access Rights:

One of the prerequisite before going ahead with Loan Module is:

Under Settings -> Users -> Loan App access rights, users can select rights for Loan users.

We have User and Manager rights here.

Only after selecting the user settings, Loan Module can be accessed.

One who has the rights of a Manager, will be able to Configure the module under “Configuration” Tab/

One who has the rights of a User, won’t be able to see or configure the module.

Company Loan Configuration:

Setting up the required parameters and settings in the Odoo Loan Management module to specify the features and conditions of the loans that a business offers constitutes the configuration of loans in Odoo. Usually, this configuration entails loan products, loan terms, interest calculation method, fees, charges and documentation.

Businesses may efficiently manage their lending operations, expedite loan processing, guarantee regulatory compliance, and offer borrowers clear and effective services by setting up loans in Odoo.

Here, we can specify the account to be used for journals and define your loan configuration.

Disbursement Account:

A bank account that is primarily used for payments or fund disbursements is known as a disbursement account.

Businesses, organizations, or individuals who need to effectively manage outgoing payments frequently use this kind of account. Disbursement accounts are used exclusively to manage payments for things like salaries, bills, expenses, and other financial commitments.They support improved money management and tracking of disbursed funds.

Disbursement accounts can be set up and managed with Odoo's features, which also allow you to track transactions, reconcile accounts, link the accounts to particular vendors or expense categories, and create reports that examine spending trends and financial performance.

The senior manager can set up the payable account to be added under this category which will be affected when the payments are disbursed. The installation and EMI amounts will be added to the loan request after they are paid out.

An "Payable" Account type needs to be added. For example, 405060404 Disbursement Credit.

Write-Off Account:

When it is not possible to collect or reconcile an outstanding invoice or payment, the adjustment of accounting entries is recorded in a write-off account. This account is specifically meant to manage the reduction of balances related to accounts payable or receivable that occur from errors, uncollectible debts, or other causes. An "Expense" Account type must be added. i.e.600000 Expenses.

Loan Income Account:

An account used to track and record the interest income received from loans made by a company or organization is known as a loan income account. This account is generally used to accurately reflect the financial transactions associated with loan activities within the Odoo accounting module.

The "Income" Account type needs to be added. I.e., Income Type 450000.

Loans Journal:

The term "Loans Journal" in Odoo refers to a particular kind of journal used in the accounting module to document financial transactions pertaining to loans. This journal is used to monitor and oversee the different lending-related activities that a company or organization engages in.

Any financial business that extends credit to clients, associates, or other organizations engages in a number of financial activities, including disbursing loan amounts, collecting repayments, earning interest, and making adjustments for defaults or write-offs. To ensure accurate and well-organized accounting records, these transactions are systematically recorded in the Loans Journal in Odoo.

Loan disbursements, repayments, interest income, and any adjustments or write-offs related to the loans are all recorded in the Loans Journal.

The "Sales" Account type must be added. For example, client invoices.

Disbursement Journal:

The Disbursement Journal in Odoo is a particular kind of journal used to document financial transactions pertaining to the distribution of funds. Businesses or organizations that need to effectively manage and track outgoing payments will find this journal especially helpful.

Odoo's Disbursement Journal is intended to record different kinds of disbursements, including payments to vendors, suppliers, workers, utility bills, operating costs, and other debts. It offers a methodical approach to documenting these exchanges, guaranteeing precise accounting documentation and enhanced fiscal oversight.

Disbursement Journal: You must include the "Miscellaneous" Account type. The "Miscellaneous" Account type needs to be added.

Number of Days:

The number of days means the system will automatically generate the installment invoice in advance of the installment due date based on the number of days we enter in this field.The customer can receive this manually if systemic delivery is required.

Current Assets:

The "Current Assets" Account type needs to be added. For example, Liquidity Transfer

Principal product:

The major or primary product that a business produces, sells, or distributes is referred to as a principal product in Odoo. It stands for the company's main product and frequently acts as the center of operations and income production.

Businesses can use Odoo's product management module to manage their main products. For their main products, they are able to track sales performance, manage inventory, define attributes, classify products, and set pricing.

Here, the principal product is the main loan amount that serves as the basis for interest calculations and loan repayments. It is the fundamental element of the loan.

Interest:

These are the goods used to bill interest on loans, which is important information for figuring out borrowing prices and repayment plans.

Processing Fees:

In Odoo Loan Management, a processing fee refers to a charge levied by the lender for processing a loan application or disbursing the loan amount. This fee is typically applied to cover the administrative costs associated with processing the loan, such as paperwork, credit checks, verification procedures, and other overhead expenses.

When a borrower applies for a loan through Odoo Loan Management, the lender may impose a processing fee as part of the loan agreement. This fee is usually calculated as a percentage of the loan amount or a flat fee and is deducted from the loan proceeds before the remaining amount is disbursed to the borrower.

Penalty Product:

These are goods used to deduct penalties, usually for failure to comply with loan agreements or making payments after the due date.

Loan Management Menu

The loan menu shows all of the loans that you have provided to your clients.Product, customer, principal balance, tax, days due, and amount due are all described in accordance with our specifications. Viewing every loan from this location is simple.

Loan Properties Menu

The user must set up a loan product in the Properties Tab that the business can buy or sell. It will be up to the user to ascertain the general data, sales, purchases, inventory, and accounting.

Additionally, businesses can set up tags that will help them locate the user at any time in the future.

Loan configuration Menu

Here we can see the all loan configuration and also we can set the penalty configuration for the loan.

How to disburse Loan?

The loan amount and the EMI will be automatically calculated and displayed when we click the "Compute Items" button, based on the number of installments we have selected.

The date you designate as the installment due date will be the beginning of the installments.

The loan's future installment date is displayed in the installment line.

The total amount owed on the loan is displayed in the pending Principal, which will go down as the remaining installment dates approach.

The total of the principal and interest will be shown on the loan payment.

The principal represents the actual interest rate on the loan and is a set amount for each installment.

The Interest is also a fixed amount for all the installment which is calculated on the base of Rate Per Month.

The installment will vary depending on how it is paid.

Monthly loan installments will be computed and shown each month if the monthly mode is chosen.

Loan installments will be displayed every 15 days if the payment mode is set to bi-monthly.

To safeguard the loan and satisfy any tax requirements, we can offer Loan Insurance and Loan Tax options.

The system will process the invoice and validate the loan when we click the validate button.

Processing Invoice

Here, we can view the processing invoice amount derived from a specified loan amount percentage as well as the invoice line for the product that we have designated as a processing product under the company loan configuration.

Agent Invoice

For Agent :- Here we can see the loan agent invoice and also see the agent line for that product which we have selected as an agent product under the company loan configuration and agent invoice amount generated from specific loan amount percentage.

When we click on the above button for that installment EMI invoice will be generated.

When we click on the eye button we can see the installment invoice.

Here we can see the installment invoice and also see the loan principal amount and loan interest amount for that installment.

In Loan detail, when we have selected the rate type as a variable at that time we can change the loan EMI interest rate after the loan gets validated.

For now we have a loan interest rate of 12%.

Here we can update the interest rate for the loan.

When we change the interest rate of the loan it will affect the installment calculation. The EMI will show the updated calculation but note that it will not update the calculation of the EMI whose invoice is already generated.

We can also send the email to the borrower that the EMI calculation is updated as per the updated interest rate.

We can also postpone the loan Installments as per our convenience.

Now we can postpone the installments by a number of days.

When we choose the number of days then we can select that by how many days we want to postpone the installments.

If we also want to charge a penalty for postponing the installments we can charge a penalty based on percentage or fixed amount.

Here we can see the installment date will be updated based on their postponed days and If we selected charge for this postponed installment it will show at the toe of the installments.

Now we can postpone the installments by a number of months. When we choose the number of months then we can select that by how many months we want to postpone the installments.

Here we can see the month wise postpone installments for loan and penlties.

Here we can see the history of installment changes on the tab of loan Installment’s changes

Here we can define the execution time of this automation action is 1 day.

Every day, the automation system will synchronize actions, generating invoices for loan installments where the due date is older than today's date.

Here, we can specify that this automation action will take one hour to complete.

The automation system will synchronize actions every hour and check to see if the installment invoice due date was missed. If so, it will charge a penalty based on the days of allowance that we have configured in the configuration menu.

Here we can see the penalty for installment invoices.

All Invoices we can see here, when we click on invoice smart button.

It will show invoices of loans.