What are loan products?

Loan products are the different loan categories that you offer to your borrowers. It specifies the type of loan it is, the range of amounts it offers, and the range of tenors that it makes available. As a Lender, you can create multiple loan products for different sections of your target market. 

The two common sections of the target market that lenders usually create loan products for are SMEs and those that are taking personal loans.

When you create different products to cater to different sections of the market, you also get to specify the scoring model for that particular product and in essence for that particular section of the market. This allows you to focus on that section of the market. 

Creating a Loan Product

An admin on the Lendsqr admin console with the right permission can create a loan product. 

How to create a loan product

  1. Navigate to the “Loan Products” tab under the Product Management grouping
  2. On the loan products page, you will see a “create loan product“ button at the top-right corner of the page

        3. Clicking this button will redirect you to a page with different sections to create a new loan product

The section comprises the following:

  • Loan Product Details: This is where you will set the amount and tenor range for your product, interest rate, etc

  • KYC and Loan Documents: This is where you specify the required document(s) to be submitted during a loan application. 
  • Repayment Details: Select how you want to be repaid, the repayment sequence, and the collection method.

  • Disbursement Details: This is where you choose your disbursement method, disbursement rights, and where the disbursement should be made.

  • Loan Application Charge: Select whether or not there should be a charge when a customer applies for a loan.
  • Fees: You can choose a fee to be paid during loan disbursement or for late payment.
  • Decision Models: In this section, you can pick if you want your loan product to be attached to a particular decision model or if the default decision model should apply.

       4. After filling out the form, click on the “create loan product“ button, and Voila! You just created your first loan product.

The videos below further illustrate a step-by-step process of how to create a loan product on Lendsqr

  1. How to create a loan product (Configuring the basic details)

    2. How to create a loan product (Creating loan offer letters and setting required documents)

   3. How to create a loan product (Configuring disbursement rules and repayment details)

   4. How to create a loan product (Configuring fees and collection methods)