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Features · Loan servicing

Loan servicing software for lenders

Servicing is the long part of a loan's life: collecting repayments, keeping balances right and answering the borrower who asks how much they still owe. LoanTabs keeps every payment, receipt and statement in one record.

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What is loan servicing software?

Loan servicing software manages a loan after it is disbursed: it records repayments, applies them to principal, interest, fees and penalties, keeps the balance and schedule accurate, produces receipts and statements, and supports follow-up on overdue loans. LoanTabs includes servicing in the same system as origination, accounting and reporting.

Servicing sounds routine, but it is where most errors and disputes arise. A payment applied to the wrong bucket, an early repayment that is not reflected in interest, or a penalty added twice can turn into an argument with a borrower and a hole in your books.

This page covers servicing. For the earlier stages, see loan origination, and for the whole picture see the loan management features overview.

Servicing features in LoanTabs

Repayments and PDF receipts

Record a repayment against a loan, attach evidence if you need to, and print a PDF receipt for the borrower.

Loan repayment tracking

Allocation in your chosen order

Each product has a repayment order you can rearrange. The default applies payments to penalties, then fees, then interest, then principal.

Repayment allocation explained

Schedules that follow the product

Daily, weekly, every two weeks, monthly, quarterly, semi-annual or yearly installments, plus lump sum and set days or dates.

Loan amortization schedules

Loan statements as PDF

Print a statement showing the schedule and the payment history, so a borrower can see exactly what was paid and what remains.

Loan statements

Penalties you apply

Define penalty types as a fixed amount or a percentage. Staff apply a penalty to an overdue loan with the suggested amount.

Loan fees and penalties

Stop and resume interest

Pause interest on a loan when your policy requires it, resume it later, and close or write off the loan with the change recorded.

Loan closure and write-off

What servicing a loan looks like day to day

  1. Step 1

    Record the payment

    Enter the amount and date against the loan. The payment is allocated by your repayment order.

  2. Step 2

    Give the borrower a receipt

    Print the PDF receipt so the borrower has proof of payment.

  3. Step 3

    Check what is overdue

    Use the delinquency worklist and daily collection sheet to see who to follow up.

  4. Step 4

    Report and close the period

    Read the portfolio reports, then close the month in the ledger once it agrees.

How LoanTabs handles late and partial payments

When a borrower pays late or pays less than the installment, the payment is still allocated in your repayment order, so penalties and fees can be cleared before interest and principal if that is your policy. The schedule and the outstanding balance update, and the loan appears on the aging report according to how many days it is past due.

Penalties are applied by staff rather than automatically. LoanTabs suggests the amount from the penalty type you defined, and your team decides whether to apply it. That keeps discretion where many lenders want it, and it keeps an auditable record of who applied what.

Payments can be corrected but not deleted through the interface, and the Exceptions and audit report shows late, edited or deleted payments and write-offs, so unusual activity is easy to find.

Loan servicing software: common questions

What does loan servicing include?

Loan servicing covers everything after disbursement: collecting and recording repayments, applying them to the right balances, keeping the schedule accurate, producing receipts and statements, and following up overdue loans.

Does LoanTabs apply late fees automatically?

No. You define penalty types, and staff apply a penalty to an overdue loan, with the amount suggested from the penalty type.

Can I print receipts and statements?

Yes. LoanTabs produces PDF payment receipts and PDF loan statements.

Can I change how payments are allocated?

Yes. Each loan product has a repayment order you can rearrange. The default is penalties, fees, interest, then principal.

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