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 amount it offers and the range of tenor 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 Pecunia with the right permission can create a loan product.
How to create a loan product
- Navigate to the “Loan Products” tab under Businesses
- On the loan products page, you will see a “create loan product“ button at the top-right corner of the page
- Clicking this button will redirect you to a page with a form to create a new loan product
- The form is divided into 8 sections
- Loan Product Details: This is where you will set the amount and tenor range for your product, interest rate, customer type etc.
- Guarantor: Here you get to specify if your loan product will require a guarantor or not. You also get to set at what limit should the guarantor validation be activated.
- Multi Tenor: This is where you choose if the loan product should be multi tenor or not.
- Disbursement Rules: In this section, you get to specify if you want manual disbursement or automatic, you also get to specify who has the right to disburse a loan.
- Repayment Details: Here you choose if you want a straight line repayment method or a reducing balance repayment method.
- Additional Details: In this section, you get to specify some other miscellaneous settings for your loan product. E.g. if your loan product requires KYC documents like valid IDs (this setting is usually advised to be applied).
- Fees: This is the section where you get to pick the different fees you want to be applied to the loan product.
- Decision Models: In this section, you can pick if you want your loan product to be attached to a particular decision model or the default decision model should apply.
- Loan Product Details: This is where you will set the amount and tenor range for your product, interest rate, customer type etc.
- After filling the form, click on the “create loan product“ button.
- Voila! You just created your first loan product.
Note: If you wish to collect certain data beyond the default form fields displayed to your users during the loan application process on the mobile app or web app, you can make a request to the Lendsqr team and specify the data you wish to collect and customize the loan forms displayed to your users to suit the specified data that you need to make informed decisions concerning a particular loan product. Your users, when they apply for a loan, will be able to view your customized data form in the loan application process and provide the information requested.
The videos below further illustrate a step-by-step process of how to create a loan product on Lendsqr
- 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)