# LoanTabs: full site content

> LoanTabs is cloud-based loan management software for small lenders, money lenders, microfinance institutions and SACCOs. It covers loan origination and approvals, repayments and receipts, double-entry accounting, 28 reports, and a built-in AI portfolio assistant.

Source: https://www.loantabs.com/. Index of pages: https://www.loantabs.com/llms.txt.

## LoanTabs at a glance

- **Product:** LoanTabs — cloud-based loan management software (web app, nothing to install)
- **Built for:** Small lenders, money lenders, microfinance institutions (MFIs) and SACCOs
- **Loan lifecycle:** Applications, approvals, disbursement, repayments, receipts, statements, closure and write-off
- **Interest methods:** 7 options: Flat, Declining Balance, Reducing Balance (equal installments or equal principal), Interest-Only, Compound (accrued or equal installments)
- **Accounting:** Double-entry ledger with chart of accounts, journals, cash accounts, expenses and period close
- **Reports:** 28 reports (portfolio at risk, aging, provisions, collections, income, balance sheet, trial balance), exportable to CSV and PDF
- **AI assistant:** Ask portfolio questions in plain English; every change it proposes needs a human confirmation
- **Data import:** CSV/Excel import of borrowers, loans and payments with a free starter template
- **Access control:** Multi-branch, 11 staff roles, per-branch loan-approval rules
- **Free trial:** 30 days, full access, no credit card required
- **Pricing:** Pro from $9.99/month, Corporate from $19.99/month, Enterprise from $54.99/month (annual billing promo), plus a Custom plan
- **Company:** Powersoft Company Ltd, Ntinda, Kampala, Uganda

## Pricing

Source: https://www.loantabs.com/pricing/. Prices are in US dollars per month. Every plan starts with a 30-day free trial.

| Plan | Best for | Monthly billing (USD) | Annual billing (USD) |
| --- | --- | --- | --- |
| Pro | Independent money lenders & loan officers | $12.99/mo. 30 days free, then $12.99/mo for 4 months. Renews at $19/mo after 5 months. | $9.99/mo. 30 days free, then $9.99/mo for 12 months. Renews at $16/mo after 13 months. |
| Corporate | Small teams and growing lending operations | $24.99/mo. 30 days free, then $24.99/mo for 4 months. Renews at $39/mo after 5 months. | $19.99/mo. 30 days free, then $19.99/mo for 12 months. Renews at $33/mo after 13 months. |
| Enterprise | Multi-branch microfinance institutions & lending companies | $69.99/mo. 30 days free, then $69.99/mo for 4 months. Renews at $89/mo after 5 months. | $54.99/mo. 30 days free, then $54.99/mo for 12 months. Renews at $75/mo after 13 months. |
| Custom | SACCOs, credit cooperatives & member-owned savings groups | Custom pricing | Custom pricing |

**Pro:** Core loan management for solo lenders and very small operations. Includes: AI Portfolio Assistant; 1 branch, 1 user seat; Loan origination, approval & servicing; Unlimited borrowers, loans & statements; Borrower & document management; Configurable loan products & repayment schedules; Collections reports (delinquency worklist, daily collection sheet); 28 reports with CSV & PDF export.
**Corporate:** Everything in Pro, plus the staff oversight growing lenders need. Includes: 1 branch, 5 user seats; Everything in Pro; Staff records & role-based approvals; Priority support.
**Enterprise:** Up to 10 branches and unlimited user seats for lenders operating at scale. Includes: Up to 10 branches, unlimited user seats; Everything in Corporate.
**Custom:** SACCO governance, payroll and custom workflows, built for your institution as custom implementations. Includes: SACCO custom build: share capital, dividends, AGM & board records; Staff payroll processing (custom build); Custom workflows; Professional Services setup and customization; Everything in Enterprise.

## Frequently asked questions

### What is loan management software?

Loan management software is a system that records and automates a loan from application to closure: approvals, disbursement, repayment schedules, interest, fees, receipts, statements, accounting and reports. LoanTabs is cloud-based loan management software for small lenders, MFIs and SACCOs. See the [full feature list](https://www.loantabs.com/features/).

### Who is LoanTabs for?

LoanTabs is built for small lenders, [money lenders](https://www.loantabs.com/solutions/money-lenders/), [microfinance institutions](https://www.loantabs.com/solutions/microfinance-institutions/) and [SACCOs](https://www.loantabs.com/solutions/saccos/). A one-person lender can start on the Pro plan; multi-branch institutions use Enterprise.

### Is LoanTabs an online loan management system?

Yes. LoanTabs runs entirely in your web browser, so there is nothing to install and your team can work from any device with an internet connection. Staff create and process loan applications online, from intake and document upload through approval and disbursement.

### Can borrowers apply for a loan online?

Your staff enter and process applications online today. A borrower self-service portal is planned, but it is not available yet.

### How much does LoanTabs cost?

Every plan starts with a 30-day free trial and no credit card. After that: Pro from $9.99/mo, Corporate from $19.99/mo, Enterprise from $54.99/mo on annual billing (promotional rates), plus a Custom plan for SACCO and payroll builds. See [pricing](https://www.loantabs.com/pricing/) for monthly billing, renewal rates and what each plan includes.

### Can I move my existing loans from Excel?

Yes. You can import borrowers by CSV, and import borrowers, loans and payments together from a free Excel starter template, then carry on working in LoanTabs. Borrower imports show a validation report so you can fix any rows that failed.

### Which interest methods does LoanTabs support?

Each loan product can use Flat, Declining Balance, Reducing Balance (equal installments or equal principal), Interest-Only, or Compound interest (accrued or equal installments), charged as a percentage or a fixed amount. Fees can be deducted at disbursement, capitalized into the loan or charged separately. See [how loan interest works](https://www.loantabs.com/resources/simple-vs-compound-vs-flat-interest/).

### What reports does LoanTabs include?

28 reports, including portfolio at risk (PAR), aging, provisions, delinquency, the daily collection sheet, collections performance, loan income, profit and loss, balance sheet, trial balance and general ledger. Every report exports to CSV and PDF. See [reporting](https://www.loantabs.com/features/reporting/).

### Does LoanTabs use AI?

LoanTabs AI is a portfolio assistant. Ask about due dates, arrears or branch performance in plain English, draft loans and borrowers by describing them, and get early-settlement quotes. It checks its numbers against your records and shows the sources it used, and it can only change data after a staff member confirms the exact changes. An admin can switch it off. See the [AI assistant](https://www.loantabs.com/features/ai-assistant/).

## Product and solution pages

### An online loan management system you can run from any browser

URL: https://www.loantabs.com/online-loan-management-system/
Updated: 2026-09-30

LoanTabs is a cloud-based online loan management system for small lenders, MFIs and SACCOs. Your team enters applications, approves loans, records repayments and reads reports online, with nothing to install and no server to look after.

#### What is an online loan management system?

An online loan management system is loan management software that runs on the web instead of on one computer. Your loan records live in the provider's cloud, staff sign in from a browser, and updates and infrastructure are handled for you. LoanTabs is an online loan management system built for small lenders, MFIs and SACCOs.

The difference matters most the day something goes wrong. With desktop software the loan book sits on one machine, so a failed disk, a stolen laptop or an office power cut becomes a business problem. With an online system the data is held on managed cloud infrastructure, every branch works from the same live copy, and nobody has to remember which file is the latest.

An online system has one honest limitation: it needs an internet connection. LoanTabs has no offline mode, so a branch with no connectivity cannot work until the connection returns. If your lending is done entirely in places without dependable internet, that is worth weighing before you commit.

#### Online loan management system vs desktop software vs spreadsheets

|  | Online system (LoanTabs) | Desktop software | Spreadsheets |
| --- | --- | --- | --- |
| Where your data lives | In the provider's cloud, as one shared copy | On one computer or your own server | In files that get copied, emailed and edited in parallel |
| Access | Any device with a web browser and internet | The installed computer, or a remote-desktop setup | Wherever the file is, if it is the latest version |
| Updates | Rolled out by the provider; nothing to install | You install and maintain them | None; the formulas are yours to maintain |
| Several branches or staff | 11 staff roles and per-branch approval rules built in | Usually needs extra setup or licences | Hard: version conflicts and no real permissions |
| Reports | 28 built-in reports, exportable to CSV and PDF | Depends on the product | Built and checked by hand |
| Internet needed | Yes (LoanTabs has no offline mode) | No | No |
| How you pay | A monthly or annual subscription | A licence plus hardware and maintenance | Free software, paid for in staff time and errors |

#### Is an online loan management system secure?

Security is the first question a careful lender asks, and the right answer is specific rather than reassuring. LoanTabs runs on managed AWS cloud services. Data is encrypted in transit over HTTPS and stored with AWS-managed encryption at rest. Each institution's records are separated, because every request is authorized against the institution the signed-in user belongs to.

Inside your own institution, access follows role. There are 11 staff roles, from admin and branch manager to cashier, auditor and viewer, each with defined permissions, and loan events are recorded so you can see who did what. The [security page](https://www.loantabs.com/security/) sets out the details, and it is written to claim only what the platform actually does.

Whichever vendor you choose, ask the same questions: where the data is hosted, who can see it, how access is controlled, and what happens to your data if you leave. A good online loan management system answers plainly.

#### Who should use an online loan management system?

An online system suits any lender who wants one accurate record of the loan book and does not want to run servers. It is a particularly good fit for [small lenders and money lenders](https://www.loantabs.com/loan-management-software-for-small-business/) who have outgrown spreadsheets, for [microfinance institutions](https://www.loantabs.com/solutions/microfinance-institutions/) with several branches that need the same policy applied everywhere, and for [SACCOs](https://www.loantabs.com/solutions/saccos/) that want their loan book and their reports in one place.

If you are still deciding what kind of tool you need, the [loan software guide](https://www.loantabs.com/loan-software/) explains the categories, and the [lending software page](https://www.loantabs.com/lending-software/) shows what a complete lending management system covers.

#### Online loan management system: common questions

**Is LoanTabs a cloud-based loan management system?** Yes. LoanTabs runs in the cloud and is used through a web browser. There is nothing to install, and every branch and staff member works from the same live loan book.

**Can I use an online loan management system on my phone?** LoanTabs runs in any modern web browser and has a mobile menu, so you can check the loan book from a phone. Detailed work such as reviewing a loan schedule is easier on a larger screen.

**Does LoanTabs work offline?** No. LoanTabs needs an internet connection and has no offline mode. If the connection drops, you can continue once it is back.

**How do I move my existing loans into an online system?** Import borrowers by CSV, or import borrowers, loans and payments together from the free Excel starter template. Borrower imports show a validation report so you can correct any rows that failed.

**How much does an online loan management system cost?** LoanTabs starts with a 30-day free trial, then paid plans for one lender up to multi-branch institutions. See the [pricing page](https://www.loantabs.com/pricing/) for plan details, promotional rates and renewal prices.


### Loan software: what it is, the main types and how to choose

URL: https://www.loantabs.com/loan-software/
Updated: 2026-09-30

Loan software covers everything from a simple payment calculator to a complete loan management system. This guide explains the types, the features that matter for a small lender, and how to pick the right one.

#### What is loan software?

Loan software is any program that helps a lender create, track and collect loans. It ranges from simple loan calculators to complete loan management systems that handle applications, approvals, repayment schedules, accounting and reports. Small lenders usually need an all-in-one loan management system rather than several separate tools.

People use several names for the same idea. Loan management software, loan servicing software, loan origination software and lending software all describe tools for running a loan book, and the labels overlap. What differs is scope: how much of the loan's life the software covers, and whether it includes accounting and reporting.

That scope is the thing to decide first. A lender writing five loans a month has different needs from a microfinance institution with several branches and a portfolio-at-risk target, and the software that suits one will frustrate the other.

#### The main types of loan software compared

| Type | What it does | Best suited to |
| --- | --- | --- |
| Loan calculators and amortization tools | Work out payments and repayment schedules for a single loan | Quoting a loan or checking a figure; not a system of record |
| Spreadsheet templates | Track loans, payments and balances in Excel or Google Sheets | Very small lenders just starting out |
| Loan origination software (LOS) | Handles applications, underwriting and approval up to disbursement | Lenders with high application volume or formal underwriting |
| Loan servicing software | Handles a loan after disbursement: schedules, payments, statements and collections | Lenders whose main work is managing existing loans |
| Loan management software (LMS) | Covers origination and servicing, usually with accounting and reports in one system | Most small lenders, money lenders, MFIs and SACCOs |
| Collections software | Focuses on overdue accounts, contact strategy and recovery | Lenders with a large delinquent portfolio |
| Core banking systems | Full banking: deposits, payments and a general ledger for regulated banks | Banks and large regulated institutions; more than a small lender needs |

#### Loan software, loan management software and lending software

In practice the three phrases are used interchangeably. "Loan software" is the broadest and often means any tool touching loans. "Loan management software" or a loan management system (LMS) usually means a system of record that covers the whole life of a loan. "Lending software" and "lending management system" tend to stress the lender's whole operation, including accounting, staff and reporting. The [lending software page](https://www.loantabs.com/lending-software/) covers that fuller picture.

If you searched for loan software because you have outgrown spreadsheets, you almost certainly want loan management software. Our [overview of LoanTabs](https://www.loantabs.com/) shows what that looks like, and the [online loan management system page](https://www.loantabs.com/online-loan-management-system/) explains the cloud approach.

#### Loan software: common questions

**What is the best loan software for a small lender?** The best choice is the one that matches your loan products and your team size, and that you can test with your own data. For most small lenders that means loan management software with configurable products, approvals, receipts, accounting and reports. LoanTabs is built for this and has a 30-day free trial.

**Is loan software the same as a loan management system?** The terms overlap. Loan software is the broad category. A loan management system is a complete system of record covering a loan from application to closure, usually with accounting and reports.

**Can I use Excel instead of loan software?** You can at first. Spreadsheets work for a handful of loans, but they struggle with recalculating balances, several staff, several branches and audit trails. Most lenders move to loan software when errors or time spent start to cost more than a subscription.

**Does loan software include accounting?** Some does and some does not. Check whether loans and payments post to a general ledger. LoanTabs includes a double-entry ledger, cash accounts, expenses and period close.

**How much does loan software cost?** Prices range from free spreadsheet templates to enterprise licences. LoanTabs publishes its plans and prices on the [pricing page](https://www.loantabs.com/pricing/), with a 30-day free trial.


### Lending software and lending management systems, explained

URL: https://www.loantabs.com/lending-software/
Updated: 2026-09-30

A lending management system runs the whole lending operation, not just a list of loans. This page explains what lending software covers, who needs it, and how LoanTabs handles each stage from application to reporting.

#### What is a lending management system?

A lending management system is software that runs a lender's whole operation: loan origination, approvals, servicing, collections, accounting, staff and reporting. "Lending software" is the broader label for tools used in lending. LoanTabs is a lending management system for small lenders, MFIs and SACCOs, delivered online.

The words "management system" are the important part. A tool that only calculates repayments is lending software, but it is not a lending management system, because it does not hold the record of the loans, control who can approve them or produce the accounts and reports that a lender has to live by.

A real lending management system replaces the patchwork of spreadsheets, notebooks and chat messages many lenders start with. It gives every loan one history, gives every member of staff a defined role, and gives management a live view of the portfolio.

#### The lending lifecycle and what handles each stage

| Stage | What happens | In LoanTabs |
| --- | --- | --- |
| Application and intake | Borrower details and supporting documents are captured | Staff capture applications online with documents attached ([online loan application software](https://www.loantabs.com/online-loan-application-software/)) |
| Approval | The right people review and approve the loan | Per-branch approval rules by role, with every decision logged |
| Disbursement | Funds are released against the approved terms | Disbursement recorded against the loan product's terms |
| Servicing | Repayments are recorded and balances kept accurate | Repayments allocated in your chosen order, PDF receipts and loan statements |
| Collections and arrears | Overdue loans are found and followed up | Delinquency worklist, daily collection sheet, portfolio at risk and aging reports |
| Accounting | Every movement of money is recorded in the books | Double-entry ledger posted from loans, payments, expenses and other income |
| Reporting | Management sees the state of the portfolio | 28 reports, exportable to CSV and PDF |
| Administration | Staff, branches and policies are managed | 11 staff roles, multi-branch data separation and custom fields |

#### Who uses lending software?

Lending software is used by anyone who lends money as a business: independent [money lenders](https://www.loantabs.com/solutions/money-lenders/), [microfinance institutions](https://www.loantabs.com/solutions/microfinance-institutions/), [SACCOs and cooperatives](https://www.loantabs.com/solutions/saccos/), and companies offering personal or instalment loans. The needs differ in scale rather than in kind. A one-person lender needs a clean record and reliable schedules. A multi-branch institution also needs policy enforcement and consolidated reporting.

One caution applies to every lender. Software helps you keep accurate records and follow your own procedures, but it does not make you compliant with lending law. Licensing, interest caps, consumer-protection rules and reporting duties differ by country and are your responsibility. Use lending software to make compliance easier to evidence, not to replace advice.

#### Lending software: common questions

**What is the difference between lending software and a lending management system?** Lending software is the broad term for tools used in lending. A lending management system is a complete system that holds the record of every loan and covers origination, servicing, accounting, staff controls and reporting.

**Is LoanTabs a lending management system?** Yes. LoanTabs covers applications and approvals, disbursement and repayments, collections reports, a double-entry ledger and 28 reports, with staff roles and multi-branch controls. It is delivered online for small lenders, MFIs and SACCOs.

**Does lending software handle collections?** LoanTabs includes collections reports: a delinquency worklist of overdue loans, a daily collection sheet, and portfolio at risk and aging reports. It does not run automated collection campaigns.

**Can lending software support several branches?** Yes. LoanTabs separates data by branch and lets you set loan-approval rules per branch. The Enterprise plan supports up to 10 branches.

**How do I choose lending software?** List your loan products and team size, decide your must-haves, then trial the software with your own data. The [loan software guide](https://www.loantabs.com/loan-software/) walks through the process.


### Loan management software for small business lenders

URL: https://www.loantabs.com/loan-management-software-for-small-business/
Updated: 2026-09-30

LoanTabs is loan software for small business lenders who have outgrown spreadsheets. Set up quickly, run loans with a one-person or five-person team, print receipts and statements, and see your whole loan book without a finance department.

#### What is loan management software for a small business?

Loan management software for a small business is a simple online system that lets a small lender record loans, calculate interest, track repayments, print receipts and see the portfolio, without an IT team. It replaces spreadsheets and notebooks with one accurate record. LoanTabs is built for small lenders and starts with a 30-day free trial.

"Small business" can mean two things here, and LoanTabs serves the first. The first is a small business whose product is lending: a money lender, a small finance company, a savings group or a lending desk inside another business. The second is a small business that wants to borrow. LoanTabs is for the lender managing the loans, not for the business applying for one.

Small lenders share a set of problems: one or two people doing everything, no time for setup, a loan book that lives in a spreadsheet, and a fear of a formula error costing real money. Good loan software for small business fixes those without adding complexity.

#### How much does loan software for a small business cost?

Every LoanTabs plan starts with a 30-day free trial and no credit card. After the trial, the Pro plan for a single lender or loan officer starts from $9.99 per month on annual billing (a promotional rate), and Corporate adds five user seats. The [pricing page](https://www.loantabs.com/pricing/) shows monthly and annual prices, the renewal rates and exactly what each plan includes.

Judge the cost against the alternative. A spreadsheet is free, but it costs staff time every day, and one wrong balance can cost more than a year of subscription. The right question is whether the software saves more time and prevents more errors than it costs.

One thing to plan for: some capabilities are outside the standard plans. SACCO member savings, share capital, dividends and payroll are delivered as custom implementations, so if you need those, see the [SACCO page](https://www.loantabs.com/solutions/saccos/) and talk to sales.

#### Loan software for small business: common questions

**What is the best loan management software for a small business?** It is the one that fits your loan products and team size and that you can test on your own loans. For a small lender that means configurable products, a small-team workflow, receipts, accounting and reports. LoanTabs is designed for this, with a 30-day free trial.

**Can one person use LoanTabs?** Yes. The Pro plan is one branch and one user seat, and an admin can create and disburse a loan in one step, which suits a solo lender.

**Is there free loan management software for small business?** LoanTabs is not free, but every plan includes a 30-day free trial with full access. Free spreadsheet templates exist, but they lack schedules, roles and audit trails.

**Can I import my existing loans?** Yes. Use the free Excel starter template to import borrowers, loans and payments, or import borrowers by CSV.

**Does LoanTabs work for loans to businesses?** Yes. A borrower can be a person or a business, so you can lend to small businesses and record their loans, guarantors and collateral.


### Online loan application software for lenders

URL: https://www.loantabs.com/online-loan-application-software/
Updated: 2026-09-30

LoanTabs lets your staff take and process loan applications online: capture the borrower's details and documents, send the application through your approval rules, and disburse, all in one system. A borrower self-service portal is planned but is not available yet.

#### What is online loan application software?

Online loan application software captures loan applications digitally, keeps the borrower's details and documents together, and moves each application through review, approval and disbursement. It can be staff-facing, borrower-facing, or both. LoanTabs is staff-facing today: your team enters and processes applications online. A borrower self-service portal is planned but not yet available.

Many small lenders assume online loan applications means a public web form. In practice a large share of lending, especially in person, by phone or through agents, still starts with a staff member talking to the borrower. What those lenders need is not a form on a website but a fast, structured way to capture the application, so nothing is lost on paper and the approval trail is clear.

That is the model LoanTabs supports. Staff enter each application online, attach the documents, and send it through your approval rules. The result is an application record that everyone in the institution can see, rather than a sheet of paper or a chat message.

#### Staff-side application entry vs a borrower self-service portal

|  | Staff-side entry | Borrower self-service portal |
| --- | --- | --- |
| Who enters the data | Your staff, with the borrower | The borrower, on their own |
| Best for | In-person, phone and agent-led lending | High-volume, fully remote lending |
| Data quality | Staff can check details as they capture them | Depends on the borrower and on validation rules |
| Available in LoanTabs | Yes, today | Planned. A self-service portal is not available yet |

#### What about KYC and credit checks?

LoanTabs records the borrower's ID number, lets you attach ID and security documents, and has a credit score field on the borrower record. It does not run automated identity verification or pull credit-bureau reports. If you use a verification service or a bureau, record the outcome and attach the evidence to the borrower's file.

Knowing your customer is a legal duty in many countries, and it varies by jurisdiction. The software gives you a structured place to keep the evidence; deciding what evidence you need remains your responsibility. Our guide to a [KYC checklist for small lenders](https://www.loantabs.com/resources/kyc-checklist-for-small-lenders/) covers the common elements.

#### Online loan application software: common questions

**Can borrowers apply for a loan online with LoanTabs?** Not yet. Your staff enter and process applications online. A borrower self-service portal is planned but is not available today.

**Can I take loan applications online without a website?** Yes. LoanTabs is used by your staff in a web browser. You do not need to build or host an application form.

**Does LoanTabs support digital signatures?** No. LoanTabs does not currently offer e-signature. You can attach signed agreements and documents to the borrower and loan file.

**Can I approve loans online?** Yes. Loans follow approval rules set per branch and every decision is logged. Branch managers and admins always approve, and small teams can create and disburse in one step.

**Can I import applications from Excel?** You can import borrowers by CSV, and borrowers, loans and payments together from the free Excel starter template.


### A loan management solution, not just loan software

URL: https://www.loantabs.com/loan-management-solution/
Updated: 2026-09-30

Software alone does not run a loan book. LoanTabs is a loan management solution: cloud software for the whole loan lifecycle, tools to bring your existing loans across, staff documentation, human support, and custom implementation when you need more.

#### What is a loan management solution?

A loan management solution is loan management software plus everything a lender needs to use it well: configuration, data migration, documentation and support. LoanTabs is a loan management solution. It combines cloud software for the loan lifecycle, tools to import your existing loans, staff guides and human support, with custom implementation for SACCOs and complex needs.

The difference is practical. Buying software gives you a login. A solution gets you to a working loan book: your products configured, your existing loans imported, your staff able to use it, and someone to ask when something is unclear.

When lenders compare products, the software features are usually easy to check, and the surrounding support is where the real differences show up. This page sets out what surrounds the LoanTabs software so you can weigh it.

#### Software only vs a loan management solution

|  | Software only | Loan management solution (LoanTabs) |
| --- | --- | --- |
| Configuration | You work out the settings alone | Guides for each setting; custom setup on the Custom plan |
| Existing loans | Re-key everything by hand | Excel and CSV import with a starter template and validation |
| Learning the system | Trial and error | Twelve staff guides in the documentation |
| When something is unclear | A ticket queue, maybe | Email and phone or WhatsApp; priority support on Corporate and Enterprise |
| Needs beyond the standard product | Not available | Custom implementation on the Custom plan |

#### Which LoanTabs plan fits your solution?

Pro suits an independent lender or loan officer: one branch and one user seat. Corporate suits a small team: one branch, five seats and priority support. Enterprise suits a multi-branch institution: up to 10 branches and unlimited seats. The Custom plan is for institutions that need SACCO governance, payroll or custom workflows built for them, with professional services setup.

The [pricing page](https://www.loantabs.com/pricing/) has the details, including monthly and annual prices. If you are unsure which plan you need, the [small business page](https://www.loantabs.com/loan-management-software-for-small-business/) and the [microfinance page](https://www.loantabs.com/solutions/microfinance-institutions/) describe the two most common starting points.

#### Loan management solution: common questions

**What is the difference between loan management software and a loan management solution?** Loan management software is the product. A loan management solution is the product plus the setup, migration, documentation and support around it. LoanTabs provides both.

**Will you help me move my loans from Excel?** LoanTabs provides a free Excel starter template and a CSV import, with a validation report to catch errors. Custom setup and customization are part of the Custom plan's professional services; ask sales what is included.

**What support do LoanTabs customers get?** You can reach the team by email and by phone or WhatsApp. Corporate and Enterprise plans include priority support. Twelve staff guides are also published in the [documentation](https://www.loantabs.com/docs/institution-staff/).

**Can LoanTabs be customized for a SACCO?** Yes. SACCO member savings, share capital, dividends, AGM records, group lending and payroll are delivered as custom implementations on the Custom plan. Contact sales to scope what your institution needs.

**Is there a free trial of the solution?** Yes. Every plan starts with a 30-day free trial with full access and no credit card required.


### Loan origination software for small lenders

URL: https://www.loantabs.com/features/loan-origination/
Updated: 2026-09-30

Origination is everything that happens before the money goes out: capturing the borrower, setting the terms, checking the file and getting approval. LoanTabs handles it in one online workflow, so no application lives on paper or in a chat.

#### What is loan origination software?

Loan origination software manages the first half of a loan's life: capturing the application, recording the borrower's details and documents, setting the loan terms, and moving the loan through review and approval until it is disbursed. LoanTabs includes origination as part of its loan management system, so the record continues into servicing.

Some products sell origination separately from servicing and expect you to connect them. For a small lender that is more complexity than value. In LoanTabs the application becomes the loan, and the same record carries the schedule, the repayments and the statements later. Nothing is re-keyed between systems.

This page covers origination. For what happens after disbursement, see [loan servicing](https://www.loantabs.com/features/loan-servicing/). For the overall system, see the [loan origination and servicing overview](https://www.loantabs.com/features/loan-management/).

#### Origination and servicing: where each stage ends

|  | Loan origination | Loan servicing |
| --- | --- | --- |
| Starts | When a borrower asks for a loan | When the loan is disbursed |
| Main work | Capture details, set terms, check the file, approve | Record repayments, keep balances, produce receipts and statements, follow up overdue loans |
| Ends | At disbursement | When the loan is repaid, closed or written off |
| In LoanTabs | Borrowers, loan products, drafts, approvals | Payments, receipts, statements, [collections reports](https://www.loantabs.com/features/delinquency-and-collections-reports/) |

#### What loan origination in LoanTabs does not do

Being clear about limits helps you decide. LoanTabs records credit scores as a field but does not calculate them, and it does not pull credit-bureau reports or verify identity automatically. It does not offer e-signature, and borrowers cannot yet apply for loans themselves; your staff enter applications. Underwriting decisions remain with your people and your approval rules.

What it does give you is discipline: a structured record, a consistent workflow, and an approval trail. For many small lenders that is the difference between a loan book they can defend and one they cannot.

#### Loan origination software: common questions

**What is loan origination?** Loan origination is the process of creating a loan: taking the application, recording the borrower's information, agreeing terms, reviewing and approving the loan, and disbursing the funds.

**Is LoanTabs a loan origination system?** It includes origination as part of a complete loan management system. You take the application, set the terms and approve in the same system that later services the loan.

**Can I set different approval rules for each branch?** Yes. Approval rules are configured per branch. Branch managers and admins always approve, and you can require additional roles.

**Does LoanTabs do automated underwriting?** No. LoanTabs records a credit score field and supports your approval workflow, but underwriting decisions are made by your staff.


### Loan servicing software for lenders

URL: https://www.loantabs.com/features/loan-servicing/
Updated: 2026-09-30

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.

#### 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](https://www.loantabs.com/features/loan-origination/), and for the whole picture see the [loan management features overview](https://www.loantabs.com/features/loan-management/).

#### 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.


### Loan collections and arrears reports

URL: https://www.loantabs.com/features/delinquency-and-collections-reports/
Updated: 2026-09-30

Late loans are found by looking, not by luck. LoanTabs gives your team a worklist of overdue loans, a printable daily collection sheet, and the portfolio-at-risk, aging and provisioning reports that show how much of the book is in trouble.

#### What are loan collections and delinquency reports?

Loan collections and delinquency reports show which loans are overdue, by how many days and by how much, so a lender can follow up and measure risk. Common ones are a delinquency list, an aging report, portfolio at risk (PAR) and a provisioning schedule. LoanTabs includes all four as built-in reports.

LoanTabs provides collections reports rather than a full collections module. That means you can see exactly what is overdue and hand a collection sheet to an officer, but it does not run automated reminder campaigns or dialers. For most small lenders and MFIs, knowing precisely who to visit today is what matters.

#### Which report answers which question

| Question | Report | Why it matters |
| --- | --- | --- |
| Who do we chase today? | Delinquency worklist and daily collection sheet | Turns arrears into a task list |
| How much of the book is at risk? | Portfolio at risk (PAR) | A single risk figure for boards, funders and regulators |
| How old is the overdue money? | Aging report | Older arrears are harder to recover |
| How much should we set aside? | Provisions and loan classification | Keeps profit and the balance sheet honest |
| Are our officers collecting? | Collections performance | Shows who and where to coach |
| Are cohorts of loans behaving? | Vintage and roll-rate analysis | Shows whether new lending is better or worse than old |

#### What LoanTabs does not do for collections

There is no automated overdue-reminder engine, call-scheduling or dialer, and the "payment due soon" and "overdue" notification options are not sent automatically. There is also no separate collections module or case-management queue. The reports tell you who is late and by how much; your team does the follow-up and records the outcome.

If you want more depth on how these measures work, our guides explain [portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/), [days past due and aging](https://www.loantabs.com/resources/days-past-due-and-loan-aging/) and [how to reduce loan defaults](https://www.loantabs.com/resources/how-to-reduce-loan-defaults/).

#### Loan collections reports: common questions

**Does LoanTabs have collections software?** LoanTabs includes collections reports: a delinquency worklist, a daily collection sheet, collections performance, portfolio at risk, aging and provisions. It does not include an automated reminder or dialing system.

**How do I calculate portfolio at risk in LoanTabs?** The PAR report calculates it for you using thresholds set in your reporting policy, so you do not need to work it out by hand.

**Can I print a list of borrowers to visit today?** Yes. The daily collection sheet is a printable PDF with a section for each officer and each borrower's phone number.

**What aging buckets does LoanTabs use?** Current, 1-30, 31-60, 61-90, 91-180 and 181+ days past due.


### Borrower, guarantor and collateral management

URL: https://www.loantabs.com/features/borrower-management/
Updated: 2026-09-30

A loan is only as good as the file behind it. LoanTabs keeps the borrower, the guarantors, the collateral and the supporting documents together with the loan, so the evidence is where you need it when you need it.

#### What is borrower management software?

Borrower management software keeps a complete record of each person or business that borrows: their details, identification, documents, guarantors, collateral and loan history. In LoanTabs each borrower has one record, linked to every loan they take, so a lender can see their exposure and their repayment history in one place.

For a lender the borrower file is the risk file. It is what you rely on when a loan goes late, when a guarantor is called, or when an auditor asks for the evidence behind an approval. Losing it, or scattering it across drawers and phones, is a real business risk.

#### Collateral statuses and what they mean

Collateral in LoanTabs carries a status of active, released or seized. Active means it is held against a live loan. Released means the loan has been repaid or the security otherwise freed. Seized means you have taken possession following default. Recording that status against the loan keeps the story of each asset clear, and it means a released asset is not still counted as security.

Recording value, serial or registration numbers and insurance details turns collateral from a note in a file into something you can check and act on. If you want to understand when to ask for collateral and when a guarantor is enough, read our guide to [collateral vs guarantor](https://www.loantabs.com/resources/collateral-vs-guarantor/).

#### What borrower management in LoanTabs does not do

LoanTabs stores identification numbers and documents but does not verify identity automatically or connect to a KYC provider, and the credit score is a field you complete rather than a score LoanTabs calculates. There is also no separate borrower type for groups; group lending is delivered as a custom implementation. Our [KYC checklist for small lenders](https://www.loantabs.com/resources/kyc-checklist-for-small-lenders/) explains what evidence lenders commonly collect.

#### Borrower management: common questions

**Can LoanTabs track guarantors and collateral?** Yes. Guarantors can be linked to loans, and collateral such as vehicles, land, buildings, equipment, inventory and savings is recorded with value, identifying numbers, insurance and status.

**How many documents can I upload for a borrower?** Up to 10 files of up to 10 MB each per record, or you can link to files stored elsewhere.

**Can I lend to businesses as well as individuals?** Yes. A borrower can be a person or a business, recorded by name with contact and identification details.

**Can I import my existing borrowers?** Yes, by CSV with a template and a validation report, or together with loans and payments from the free Excel starter template.


### Multi-branch loan management: branches, roles and approvals

URL: https://www.loantabs.com/features/multi-branch-and-staff/
Updated: 2026-09-30

Growing from one office to several is where spreadsheets fail. LoanTabs separates each branch's data, gives every staff member a role with defined permissions, and lets you set loan-approval rules branch by branch.

#### What is multi-branch loan management software?

Multi-branch loan management software lets one institution run several branches on a single system: each branch's loans and staff are kept separate, head office can see across them, and the same approval and access policies apply everywhere. LoanTabs supports up to 10 branches on the Enterprise plan, with 11 staff roles and approval rules set per branch.

Two problems appear as soon as a second branch opens. The first is control: you need to be sure every branch follows the same lending policy. The second is visibility: head office needs a consolidated view without waiting for each branch to send a spreadsheet. A multi-branch system addresses both.

#### Branches and seats on each LoanTabs plan

| Plan | Branches | User seats | Best for |
| --- | --- | --- | --- |
| Pro | 1 | 1 | An independent lender or loan officer |
| Corporate | 1 | 5 | A small team in one location |
| Enterprise | Up to 10 | Unlimited | A multi-branch microfinance institution or lending company |
| Custom | Configured | Custom | Institutions needing SACCO, payroll or custom workflow builds |

#### What is not in the branch and staff tools

LoanTabs does not include a staff payroll module or a supervisor hierarchy in the standard product. Payroll is available only as a custom build on the Custom plan. Permissions per role are a fixed table rather than a matrix you edit, although you choose which roles must approve loans at each branch. Approvals cover loans and pending borrowers, not every kind of transaction.

What you do get is the essentials of control: separated branches, defined roles, approval rules you set per branch, and an audit view of exceptions. For MFIs, our [solution page](https://www.loantabs.com/solutions/microfinance-institutions/) shows how these fit together.

#### Multi-branch loan software: common questions

**How many branches can LoanTabs support?** Enterprise supports up to 10 branches with unlimited user seats. Pro and Corporate are single-branch plans. The Custom plan can be configured for other needs.

**Can each branch have its own approval rules?** Yes. Approval rules are set per branch. Branch managers and admins always approve, and you can require additional roles.

**What staff roles does LoanTabs have?** Eleven: admin, branch manager, loan officer, credit committee, accountant, cashier, auditor, collections officer, risk analyst, IT support and viewer.

**Can head office see all branches?** Admins can switch the active branch to review each one, and reports show portfolio and collections information.


### Installment loan software for personal and small-business lenders

URL: https://www.loantabs.com/solutions/personal-and-installment-lenders/
Updated: 2026-09-30

Installment lending lives or dies on schedules, balances and follow-up. LoanTabs generates the repayment schedule from your loan product, applies each payment correctly, and shows you which loans are slipping.

#### What is installment loan software?

Installment loan software manages loans repaid in scheduled payments. It builds the repayment schedule from the loan's amount, term, interest method and frequency, applies each payment to the right balances, and tracks late and partial payments. LoanTabs does this for personal, salary-backed, small-business and other installment loans.

An installment loan can be a personal loan repaid monthly, a small-business loan repaid weekly, or a group of loans on different schedules in one book. What they share is a schedule, and a schedule is only useful if it is right and stays right when payments arrive early, late or in part.

#### Common installment loan setups

| Loan type | Typical setup | Why |
| --- | --- | --- |
| Personal loan | Reducing balance, equal installments, monthly | A steady payment that shrinks interest as principal falls |
| Small-business loan | Reducing balance or flat, weekly or monthly, with a processing fee | Matches the borrower's cash cycle |
| Short-term loan | Flat or interest-only, lump sum or a few installments | Simple terms over a short period |
| Top-up loan | Clone an existing loan to a draft and adjust terms | Faster than rebuilding the loan from scratch |

#### What to check for your own jurisdiction

Consumer lending is regulated in many countries: licensing, disclosure of the cost of credit, interest limits, fees and collection practices all vary. LoanTabs helps you set terms consistently and keep a clear record, but it does not decide what is lawful where you operate, and it does not generate regulatory disclosures. Confirm your local requirements before you set products.

For help choosing between interest methods, our guide to [flat rate vs reducing balance interest](https://www.loantabs.com/resources/flat-rate-vs-reducing-balance-interest/) shows how much the choice changes what a borrower pays.

#### Installment loan software: common questions

**Can LoanTabs manage personal loans?** Yes. Borrowers can be individuals or businesses, and you can define products with the interest method, fees, term limits and repayment frequency that suit personal lending.

**Does LoanTabs support flat and reducing balance interest?** Yes. It supports flat, declining balance, reducing balance with equal installments or equal principal, interest-only and compound interest.

**Can borrowers see their loans online?** Not yet. A borrower self-service portal is planned but is not available. You can print PDF statements and receipts for borrowers.

**Does LoanTabs charge late fees automatically?** No. Staff apply penalties to overdue loans, using the amount suggested by the penalty type you defined.


### Loan origination and servicing, end to end

URL: https://www.loantabs.com/features/loan-management/
Updated: 2026-09-30

From the first application to the final payment, LoanTabs models the whole loan lifecycle in one record, with an audit trail of every loan event: created, approved, disbursed, payment posted or reversed, status changed.

#### What does loan origination and servicing software cover?

Loan origination and servicing software covers a loan from application to closure: capturing the borrower, setting terms, approving and disbursing the loan, then recording repayments, producing receipts and statements, following up late accounts and closing or writing off the loan. LoanTabs does all of it in one record, with accounting and reports built in.

Some products sell origination and servicing separately. For a small lender, or an MFI or SACCO running a loan book, that split creates two records of every loan and a hand-off between them. In LoanTabs the application becomes the loan, and the same record carries the schedule, payments, documents and history. The [loan origination vs loan servicing guide](https://www.loantabs.com/resources/loan-origination-vs-loan-servicing/) explains why that matters.

#### Where each part of the loan lifecycle is covered in detail

| Stage | What it covers | Detailed page |
| --- | --- | --- |
| Originating a loan | Applications, products, drafts, schedule preview, approvals | [Loan origination software](https://www.loantabs.com/features/loan-origination/) |
| Servicing a loan | Repayments, allocation, receipts, statements, penalties, write-off | [Loan servicing software](https://www.loantabs.com/features/loan-servicing/) |
| Late loans | Delinquency worklist, collection sheet, PAR, aging, provisions | [Collections and arrears reports](https://www.loantabs.com/features/delinquency-and-collections-reports/) |
| Borrower files | Borrowers, guarantors, collateral, documents, custom fields | [Borrower management](https://www.loantabs.com/features/borrower-management/) |
| Branches and staff | Branch separation, 11 roles, per-branch approval rules | [Multi-branch and staff](https://www.loantabs.com/features/multi-branch-and-staff/) |
| The books | Double-entry ledger, cash accounts, expenses, period close | [Loan accounting software](https://www.loantabs.com/features/accounting/) |
| Management reports | 28 reports exportable to CSV and PDF | [Loan portfolio reports](https://www.loantabs.com/features/reporting/) |

#### Loan origination and servicing: common questions

**What is loan origination and servicing software?** Software that manages a loan from application and approval through disbursement, repayment, statements and closure. LoanTabs covers both halves in one record, with accounting and reports.

**Can I configure my own loan products?** Yes. Each product sets the interest method, fees, principal, interest and term ranges and repayment frequency, so every loan created on it follows your policy.

**Does LoanTabs keep an audit trail?** Loan events such as created, approved, disbursed, payment posted or reversed and status changed are recorded, and an Exceptions and audit report surfaces late, edited or deleted payments and write-offs.

**Can borrowers apply online themselves?** Not yet. Staff enter and process applications online today; a borrower self-service portal is planned but not available.


### Real double-entry accounting, not a spreadsheet bolted on

URL: https://www.loantabs.com/features/accounting/
Updated: 2026-09-30

Every loan, payment and expense hits the ledger automatically: a chart of accounts, journal entries and journal lines that give you audit-ready books without a month-end reconciliation project.

#### What is loan accounting software?

Loan accounting software records the money movements of a lending business in a double-entry ledger: disbursements, repayments, interest, fees, expenses and provisions. In LoanTabs, loans, payments, expenses and other income post journal entries automatically, so the loan book and the accounts always agree.

Most lenders start with a loan tracker in one spreadsheet and the accounts in another, or in an accounting package that knows nothing about loan schedules. Every month someone reconciles the two, and the differences take days to explain. Posting to the ledger straight from the loan record removes that reconciliation.

#### What a loan lifecycle looks like in the ledger

| Event | Debit | Credit |
| --- | --- | --- |
| Loan disbursed (1,000, no fee) | Loans receivable 1,000 | Cash or bank 1,000 |
| Loan disbursed with a 50 fee deducted | Loans receivable 1,000 | Cash or bank 950 and fee income 50 |
| Interest accrued (10) | Interest receivable 10 | Interest income 10 |
| Repayment received (88.85) | Cash or bank 88.85 | Loans receivable 78.85 and interest receivable 10.00 |
| Provision set aside | Provision expense | Allowance for loan losses |
| Loan written off | Allowance for loan losses | Loans receivable |

#### What LoanTabs accounting does not do

LoanTabs accounting is built around a lender's books, so some things are outside it. There is no cash-flow statement report, no automatic depreciation of fixed assets, and no transfers between accounts yet. Each institution works in one operating currency, chosen from about 150; there is no multi-currency ledger. Staff payroll is available only as a custom build. If you have complex group accounting or need a full general-purpose accounting package for a wider business, keep that separate and export from LoanTabs.

What you do get is the part that is hard to reconcile by hand: the loan book, interest, fees, provisions and write-offs, all posted consistently, with period close so a reconciled month stays reconciled.

#### Loan accounting software: common questions

**Does LoanTabs include accounting?** Yes. It includes a double-entry ledger with a chart of accounts, journal entries derived from loans and payments, cash accounts, expenses, other income, fixed assets and period close.

**Can I post manual journal entries?** Yes. Accountants and admins can post and reverse manual journals. Reopening a closed period is limited to admins.

**Which financial statements can I produce?** Profit and loss, balance sheet, trial balance, general ledger and journal reports, plus the cash ledger. A cash-flow statement is not included.

**Do I still need separate accounting software?** For the lending business, LoanTabs covers the ledger and statements. Many lenders still export to an accountant or a wider accounting package for tax and group reporting.


### 28 loan portfolio reports: PAR, aging, provisions and more

URL: https://www.loantabs.com/features/reporting/
Updated: 2026-09-30

Run the institution, not just the loan book. LoanTabs includes 28 reports covering portfolio quality, collections, income and accounting, each exportable to CSV and PDF, so oversight does not need a separate tool.

#### What loan portfolio reports does LoanTabs include?

LoanTabs includes 28 built-in reports across five groups: portfolio and risk, collections and disbursements, income and losses, accounting, and analytics and audit. They include portfolio at risk, aging, provisions, the delinquency worklist, profit and loss, balance sheet and trial balance, and every report exports to CSV and PDF.

Reports are where a loan management system earns its keep. A lender who can see portfolio at risk, overdue loans and income at any time manages differently from one who waits for a month-end spreadsheet. The reports below update as staff record work, so what you see is the current position of the book.

#### All 28 reports by group

| Group | Reports | The question they answer |
| --- | --- | --- |
| Portfolio and risk (10) | Portfolio Overview, Portfolio at Risk, Aging, Provisions, Concentrations, Active Loans by Officer, Loan Book and Classification, Portfolio Roll-forward, Officer Scorecard, Maturity | How big is the book, how healthy is it and where is the risk? |
| Collections and disbursements (6) | Delinquency, Daily Collection Sheet, Collections Performance, Payments Register, Disbursement, Expected Repayments | Who is late, what is due, and what has moved in and out? |
| Income and losses (3) | Profit and Loss, Loan Income (interest and penalty), Write-Off and Recovery | What did we earn and what did we lose? |
| Accounting (6) | Cash Ledger, Balance Sheet, Trial Balance, General Ledger, Journal Entries, Period Close | Do the books balance, and is the month closed? |
| Analytics and audit (3) | Vintage and Roll Rates, Client Activity, Exceptions and Audit | How are loan cohorts behaving, and what looks unusual? |

#### Reports for funders, boards and regulators

Funders and boards usually ask for the same handful of measures: portfolio size, number of active borrowers, portfolio at risk at 30 and 90 days, write-offs, provisions and income. LoanTabs produces each as a built-in report with a defined calculation, so the same number appears every time it is asked for. Read how the measures work in our guides to [portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/), [days past due and aging](https://www.loantabs.com/resources/days-past-due-and-loan-aging/) and [loan loss provisioning](https://www.loantabs.com/resources/loan-loss-provisioning-and-write-offs/).

Regulators sometimes require reports in a prescribed format. LoanTabs' reports export to CSV and PDF, which lets you rework them, but the standard reports are not tailored to any single regulator's template. If you must file in a specific format, check that a CSV export gives you what you need before you rely on it.

#### Loan portfolio reports: common questions

**How many reports does LoanTabs have?** 28 built-in reports across portfolio and risk, collections and disbursements, income and losses, accounting, and analytics and audit.

**Can I export reports to Excel?** Reports export to CSV, which opens in Excel, and to PDF. There is no native Excel file export.

**Does LoanTabs calculate portfolio at risk?** Yes. The portfolio-at-risk report calculates PAR using thresholds set in your reporting policy.

**Can I see my portfolio as it was on a past date?** Yes. As-of reports show a loan exactly as it stood on the date you choose.


### Ask your portfolio a question. Get a real answer.

URL: https://www.loantabs.com/features/ai-assistant/
Updated: 2026-09-30

A conversational AI assistant built into LoanTabs. It answers portfolio questions with numbers you can verify, fills in your forms by conversation and quotes early settlements instantly. You stay in control: every change it proposes waits for your confirmation.

#### What is an AI portfolio assistant for lenders?

An AI portfolio assistant lets lending staff ask questions about their loan book in plain English, and prepare records by describing them. In LoanTabs, the assistant queries your own data, checks the figures it states against computed results, shows the sources it used, and cannot save a change until a staff member confirms it.

AI in lending software is only useful if it is trustworthy with numbers. The design principles behind the LoanTabs assistant are simple: figures come from your data, not from the model's memory; the sources are visible; and nothing is written without a human clicking confirm. Our article on [AI in loan management](https://www.loantabs.com/resources/ai-in-loan-management/) explains what to check in any assistant.

#### What the assistant does and does not do

| The assistant does | The assistant does not |
| --- | --- |
| Answer questions about loans, borrowers, payments, portfolio and reports | Invent or estimate a monetary amount, count or date |
| Prepare a borrower, loan, payment or comment for your review | Save any change without a staff member confirming it |
| Quote early-settlement scenarios computed by code | Choose a settlement discount on its own authority |
| Search the help documentation to explain how to do something | Approve loans or make credit decisions |
| Respect the signed-in user's role and permissions | Show one institution's data to another |
| Be switched on or off by an admin | Let each institution choose its own AI model (the model is chosen by LoanTabs) |

#### Money software gets one chance to be honest about numbers

Every figure the assistant states is checked against a computed result from your own data before it is shown, and the sources it used appear next to the answer so you can verify them. It never picks a settlement discount on its own authority: that is a policy decision for your institution, not something an AI model should guess at.

The assistant is optional. Your institution's admin can switch it on or off at any time from the Admin settings, and it only ever sees what the signed-in user is allowed to see. Usage is subject to a monthly allowance that depends on your plan.

#### AI portfolio assistant: common questions

**Can the AI assistant change my data by itself?** No. Every change it proposes appears as a field-by-field diff and waits for a staff member to confirm before anything is saved.

**Can the assistant make up numbers?** It is designed not to. Figures in its answers are checked against computed results from your data, sources are shown, and it says so when it cannot find something.

**Can I turn the AI assistant off?** Yes. An admin can switch it on or off for the whole institution in the Admin settings.

**Can I choose which AI model powers it?** No. The model is chosen by LoanTabs. Bring-your-own-key is not available today.

**Does the assistant approve loans?** No. It can prepare a loan, but the normal approval workflow and your staff decide.


### SACCO and group lending, built on a full loan management system

URL: https://www.loantabs.com/features/sacco/
Updated: 2026-09-30

SACCOs and group-lending programs need more than a loan ledger. Member savings, share capital, dividends, AGM governance and group formation are delivered as custom implementations on top of the LoanTabs loan book, configured to your institution.

#### What does SACCO and group lending software cover?

SACCO software manages a cooperative's members, savings, share capital, loans, dividends and governance records. Group lending software manages groups, meetings and loans made to group members. At LoanTabs these are delivered as custom implementations on the Custom plan, built on the standard loan management system and configured to your bylaws.

This is worth stating plainly: member savings, share capital, dividends, AGM records, borrower groups and payroll are not part of the standard Pro, Corporate or Enterprise plans. They are scoped and built for each institution under the Custom plan. What every plan does include is the loan management core that a SACCO or group program runs on: loan products, approvals, payments, accounting and 28 reports.

#### Standard plans vs a SACCO or group custom build

| Capability | Pro, Corporate and Enterprise | Custom plan build |
| --- | --- | --- |
| Loan products, approvals, payments, receipts and statements | Included | Included |
| Double-entry accounting and 28 reports | Included | Included |
| Multi-branch controls and 11 staff roles | Included (branches and seats by plan) | Included |
| Member savings accounts | Not included | Custom build |
| Share capital and share transactions | Not included | Custom build |
| Dividend declarations | Not included | Custom build |
| AGM and board meeting records | Not included | Custom build |
| Borrower groups, meeting cadence and group loans | Not included | Custom build |
| Staff payroll processing | Not included | Custom build |

#### SACCO and group lending software: common questions

**Does LoanTabs have SACCO features?** SACCO features such as member savings, share capital, dividends and AGM records are delivered as custom implementations on the Custom plan, not as standard features. The standard plans cover the loan book, accounting and reports.

**Can a SACCO use LoanTabs without the custom build?** Yes, for its loan book. Loan products, approvals, payments, accounting and reports work as standard. Savings, shares and dividends would need to be managed elsewhere until a build is in place.

**Does LoanTabs support group lending?** As a custom implementation on the Custom plan. It is not part of the standard product.

**How do I get a quote for a SACCO build?** Contact sales through the [contact page](https://www.loantabs.com/contact/) and describe your institution's needs.


### Run your lending business like an institution, not a side hustle

URL: https://www.loantabs.com/solutions/money-lenders/
Updated: 2026-09-30

Independent lenders and loan officers use LoanTabs to get organized fast: clean repayment schedules, professional documentation and a real system of record, without the overhead built for a 50-branch MFI.

#### What is loan management software for money lenders?

Loan management software for money lenders is a system that records each loan, calculates interest and repayment schedules, tracks payments and arrears, and produces receipts, statements and reports. It replaces notebooks and spreadsheets with one accurate record. LoanTabs suits independent lenders and small teams, starting with a single-seat Pro plan.

A money lender's problems are usually practical: who owes what, who is late, and whether the numbers agree. When the business is one or two people, everything lives in their heads and a file, which works until it does not. The Pro plan is scoped for a single branch and a single user seat: full loan origination, servicing and borrower management, at a price that makes sense for a solo operation. Our guide to [starting and running a money lending business](https://www.loantabs.com/resources/how-to-start-a-money-lending-business/) covers the wider setup.

#### How a money lender typically sets up

Most independent lenders start with one or two loan products, for example a short working-capital loan and a longer personal loan. Create each product with its interest method, fee and repayment frequency, then import your current borrowers and loans from Excel and check the balances against your records. From then on, new loans and payments go in the system and the reports build themselves.

If you are the only person using the system, an admin can create and disburse a loan in one step, so there is no approval queue to configure. As you add staff, add roles and per-branch approval rules. The [small business loan software page](https://www.loantabs.com/loan-management-software-for-small-business/) walks through the setup in more detail.

#### Loan software for money lenders: common questions

**Is LoanTabs suitable for a solo money lender?** Yes. The Pro plan is one branch and one user seat, and an admin can create and disburse a loan in one step, which suits a solo lender.

**Can I use LoanTabs for short-term and personal loans?** Yes. Define a product for each with its own interest method, fees, term limits and repayment frequency.

**Can I print receipts for my borrowers?** Yes. LoanTabs produces PDF payment receipts and printable loan statements.

**Do I need a licence to lend?** In most places, yes. LoanTabs helps you keep records and follow your own procedures, but it does not decide what is lawful where you operate. See our guide to [starting a money lending business](https://www.loantabs.com/resources/how-to-start-a-money-lending-business/).


### Multi-branch oversight without a spreadsheet consolidation project

URL: https://www.loantabs.com/solutions/microfinance-institutions/
Updated: 2026-09-30

Growing lending companies use LoanTabs Enterprise to give every branch a consistent workflow, while head office gets real-time visibility into the whole portfolio.

#### What is loan management software for microfinance institutions?

Loan management software for microfinance institutions runs many small loans across branches and officers: loan products, schedules, payments, approvals by role, portfolio-at-risk reporting, provisioning and accounting. LoanTabs Enterprise supports up to 10 branches with unlimited staff seats, with per-branch approval rules and 11 staff roles.

An MFI's central problem is consistency at scale: every branch should apply the same policy, and head office should see the portfolio without waiting for spreadsheets. Our [microfinance software guide](https://www.loantabs.com/resources/microfinance-software-guide/) explains what MFIs need from a system in more depth, including the group lending and savings questions to ask any vendor.

#### What to plan for as an MFI

LoanTabs needs an internet connection and has no offline mode, so field officers who cannot connect record payments in the office at the end of the day. It does not integrate with mobile money providers, so repayments made that way are recorded manually and reconciled daily; see our guide to [mobile money loan repayments](https://www.loantabs.com/resources/mobile-money-loan-repayments/). Group lending, member savings and payroll are not part of the standard plans.

If those are central to your operation, discuss them with sales before committing. If your core business is individual and small-business lending across branches, the standard product covers it, and a 30-day trial with up to 10 branches lets you test it on your own data.

#### Loan software for microfinance institutions: common questions

**How many branches does LoanTabs support?** Enterprise supports up to 10 branches with unlimited user seats. The 30-day trial also includes up to 10 branches.

**Does LoanTabs report portfolio at risk?** Yes. It includes portfolio at risk, aging, provisions, loan classification and collections reports, exportable to CSV and PDF.

**Can I lend to groups?** Group lending is delivered as a custom implementation on the Custom plan, not as a standard feature.

**Does LoanTabs integrate with mobile money?** No. Repayments are recorded manually. A cash account can represent your mobile money till for reconciliation.


### SACCO software that starts with a full loan management system

URL: https://www.loantabs.com/solutions/saccos/
Updated: 2026-09-30

SACCO and cooperative governance (share capital, dividends, AGMs, board resolutions) goes beyond most lending software. LoanTabs delivers it as a custom implementation on the Custom plan, configured to your bylaws and built on a full loan management system.

#### What is a SACCO management system?

A SACCO management system manages a savings and credit cooperative: its members, savings, share capital, loans, dividends, accounts and governance records. LoanTabs runs a SACCO's loan book, accounting and reports as standard, and delivers member savings, shares, dividends and AGM records as custom implementations on the Custom plan.

A SACCO is a member-owned cooperative, not just a lender, so its software has to reflect ownership as well as loans. We explain the difference between the cooperative and microfinance models in [SACCO vs MFI](https://www.loantabs.com/resources/sacco-vs-mfi-difference/), and what to look for in a system in our [SACCO management software guide](https://www.loantabs.com/resources/sacco-management-software-guide/).

#### What a SACCO gets, and how it is delivered

| Capability | How it is delivered |
| --- | --- |
| Loan products, approvals, payments, receipts and statements | Standard on every plan |
| Double-entry accounting, period close and 28 reports | Standard on every plan |
| Portfolio at risk, aging, provisions and collections reports | Standard on every plan |
| Multi-branch controls and 11 staff roles | Standard, with limits by plan |
| Member savings and share capital | Custom implementation on the Custom plan |
| Dividend declarations | Custom implementation on the Custom plan |
| AGM and board meeting records | Custom implementation on the Custom plan |
| Payroll | Custom implementation on the Custom plan |

#### Running your loan book on LoanTabs today

SACCO features, payroll and custom workflows are built as custom implementations on a Custom plan. Until then, a SACCO can already run its loan book on LoanTabs: applications, approvals, repayments, receipts, double-entry accounting and 28 reports. Members become borrower records, guarantors can be linked to loans, and portfolio at risk, aging and provisions are available from day one.

When you are ready for savings, shares and dividends, contact sales to define the scope against your bylaws and reconcile opening balances. Our guide to [how SACCO share capital and dividends work](https://www.loantabs.com/resources/how-sacco-share-capital-and-dividends-work/) is a useful primer before that conversation.

#### SACCO management system: common questions

**Does LoanTabs manage SACCO member savings and shares?** Not as standard features. Member savings, share capital and dividends are delivered as custom implementations on the Custom plan. The loan book, accounting and reports are standard.

**Can a SACCO use LoanTabs today?** Yes, for its loan book: applications, approvals, payments, accounting and reports, with guarantors linked to loans.

**How is a SACCO build priced?** Custom work is scoped and priced individually. Contact sales through the [contact page](https://www.loantabs.com/contact/) to define what you need.

**Can LoanTabs handle AGM records?** As part of a custom build on the Custom plan, scoped to your bylaws.


### Excel vs loan management software: an honest comparison

URL: https://www.loantabs.com/compare/excel-vs-loan-management-software/
Updated: 2026-09-30

Almost every lender starts on a spreadsheet, and for a handful of loans that is a reasonable choice. This page compares Excel with loan management software fairly, so you can tell when the spreadsheet stops being enough.

#### Should I use Excel or loan management software?

Use Excel while you have a few simple loans, one person and no reporting duties. Switch to loan management software when recalculating balances, chasing late payers or producing reports takes real time, when a second person or branch needs access, or when errors and disputes start costing money.

Neither choice is right for everyone. Excel is flexible, familiar and free. Loan management software is more rigid, which is the point: it enforces calculations, roles and records that a spreadsheet leaves to whoever built it. The question is how much that discipline is worth to you.

#### Excel and loan management software side by side

|  | Excel or Google Sheets | Loan management software (such as LoanTabs) |
| --- | --- | --- |
| Cost to start | Free or already owned | A subscription; LoanTabs has a 30-day free trial |
| Setup | You build the sheets and formulas | Define loan products, staff and settings, then import your loans |
| Schedule accuracy | As good as your formulas; one overwritten cell breaks a row | Generated from the loan product and updated as payments are recorded |
| Interest methods | Whatever you build and test yourself | Built in: LoanTabs has seven, including flat, reducing balance and interest-only |
| Partial and early payments | Manual recalculation each time | Allocated automatically in a defined order |
| Receipts and statements | Built by hand or with templates | PDF receipts and loan statements generated from the record |
| Who can change what | Anyone with the file can change anything | Roles and permissions; LoanTabs has 11 staff roles and per-branch approval rules |
| Audit trail | None unless you build one | Loan events logged; an exceptions report lists edited or deleted payments |
| Several users or branches | Version conflicts and copies of the file | One shared, live record with data separated by branch |
| Reports | You build and check each one | 28 built-in reports in LoanTabs, exportable to CSV and PDF |
| Accounting | A separate sheet you reconcile by hand | Loans and payments post to a double-entry ledger |
| Access | Wherever the file is | Any device with a browser and internet (LoanTabs has no offline mode) |
| Flexibility | Total: you can do anything, including things you should not | Structured: it does what the product supports |

#### Where Excel is genuinely fine

Excel works well when you have fewer than about 20 active loans, one person managing them, simple terms and no funder or regulator asking for reports. It is a good way to learn how schedules work and to prototype a loan product. A careful person with a well-built template can run a small book accurately for a long time.

The risk is not that spreadsheets are bad. It is that they fail quietly. A formula overwritten with a typed number, a row inserted in the wrong place or an old copy opened by mistake produces a wrong balance that nobody notices until a borrower disputes it. The bigger the book, the more expensive that becomes.

#### What you give up by switching

Software is less flexible. You cannot bolt on a new column and a formula in five minutes; you work within what the product supports. You depend on a vendor, and you need an internet connection. You also have to learn a system and move your data, which takes real effort. Those are genuine costs, and they are why some very small lenders sensibly stay on spreadsheets.

Some things are also outside LoanTabs today: borrowers cannot apply for loans themselves, penalties are applied by staff rather than automatically, and repayments are recorded manually rather than through payment-provider integrations. If any of those is essential to you, check it before you switch.

#### Excel vs loan management software: common questions

**Is Excel good enough for loan management?** For a handful of simple loans managed by one careful person, yes. As loans, staff, branches or reporting needs grow, spreadsheets become risky and time-consuming.

**Can I import my Excel loan tracker into LoanTabs?** Yes. Import borrowers by CSV, or borrowers, loans and payments together from the free Excel starter template. Borrower imports show a validation report so you can fix any rows that failed.

**What is the biggest risk of using Excel for loans?** Silent errors: a wrong formula or overwritten cell that produces a wrong balance nobody notices, with no audit trail to find out what happened.

**How much does loan management software cost compared with Excel?** Excel is free to start, but costs staff time and error risk. Loan management software is a subscription. See [loan management software pricing](https://www.loantabs.com/resources/loan-management-software-pricing/) and LoanTabs' [pricing page](https://www.loantabs.com/pricing/).


### Best loan management software: how to choose the right one

URL: https://www.loantabs.com/best-loan-management-software/
Updated: 2026-09-30

There is no single best loan management software, only the best fit for a particular lender. This guide shows which type of product suits which kind of lending, the criteria that separate good software from a long feature list, and how to test before you commit.

#### What is the best loan management software?

The best loan management software is the one that handles your loan products correctly, fits your team size and lending model, produces the reports you need, and that you can test on your own loans first. For small lenders that usually means a simple cloud system with configurable products, receipts, accounting and clear pricing.

Lists of the "top 10" loan software products are easy to find and hard to trust: rankings are often paid for, the feature comparisons go stale, and they compare products built for very different lenders as if they were interchangeable. A better method is to decide what kind of lender you are, then judge products against criteria you can check.

In the interest of transparency, this guide is published by LoanTabs, which makes loan management software. We describe where LoanTabs fits and where it does not, and we do not rank other vendors here. For a longer, question-by-question version of the criteria below, use the [loan management software features checklist](https://www.loantabs.com/resources/loan-management-software-features-checklist/), and see [how to choose loan management software](https://www.loantabs.com/resources/how-to-choose-loan-management-software/) for a demo script.

#### Which type of loan software fits which lender

| Type of product | Best suited to | Watch out for |
| --- | --- | --- |
| Spreadsheet templates | Very small or new lenders with a handful of simple loans | Silent formula errors, no roles or audit trail, no reporting |
| Simple cloud loan management systems | Small lenders, money lenders, small MFIs and SACCOs managing individual and business loans | Check what is standard (accounting, reports, approvals) and what is missing (portal, integrations) |
| MFI-focused systems | Microfinance institutions with group lending, savings and many field officers | Group and savings features may be custom builds; check scope and cost |
| Open-source platforms | Organizations with technical staff and unusual requirements | You host, secure and maintain it; total cost can exceed a subscription |
| Enterprise origination and servicing platforms | Large lenders with automated underwriting, integrations and IT teams | Cost, complexity and long implementations; overkill for a small lender |
| Core banking systems | Regulated banks running deposits, payments and a general ledger | Far more than a lender needs, and priced accordingly |

#### Where LoanTabs fits, and where it does not

LoanTabs is loan management software for small lenders, money lenders, microfinance institutions and SACCOs. It fits when you manage your own loan book and want configurable loan products with seven interest methods, approvals by role, PDF receipts and statements, a double-entry ledger, 28 reports including portfolio at risk, aging and provisions, and Excel import, from a 30-day free trial with no credit card.

It is not the right fit if you need borrowers to apply for loans themselves (a self-service portal is planned but not available), automated underwriting or credit-bureau checks, integrations with mobile money providers or banks, offline working, or standard member savings, share capital, dividends and group lending (those are custom builds on the Custom plan). If any of those is essential, weigh it before you start a trial.

#### Best loan management software: common questions

**What is the best loan management software for a small business lender?** The one that fits your loan products and team and that you can test on your own loans. For small lenders, look for configurable products, correct schedules, receipts, accounting, reports and clear pricing. See [loan software for small business](https://www.loantabs.com/loan-management-software-for-small-business/).

**Is there free loan management software?** There are free templates and open-source platforms, but each has trade-offs in setup, maintenance and support. See [free loan management software](https://www.loantabs.com/resources/free-loan-management-software/).

**How do I compare loan management software?** Fix your requirements, shortlist two or three products, test each with a real sample of your loans, check the arithmetic and reports, then compare the total yearly cost including setup and renewal.

**Should I trust "top 10" lists?** Treat them as a starting point only. Rankings can be paid for or out of date, and they often compare products built for different lenders. Test candidates yourself.


## Guides

### AI in loan management: what it can do, what to check and where it goes wrong

URL: https://www.loantabs.com/resources/ai-in-loan-management/
Published: 2026-09-30

:::answer
AI in loan management software is most useful as an assistant: it answers plain-English questions about your portfolio, drafts forms from a description and explains figures. The safeguards that matter are that every number is checked against your data, sources are shown, and any change waits for a human to confirm it.
:::

AI assistants have arrived in lending software, and vendors describe them in glowing terms. For a lender, the useful question is not "does it have AI?" but "what does the AI do, and what stops it being wrong?" Money software has less room for error than most. This guide explains what AI can sensibly do in loan management, what can go wrong, and what to check before you trust it.

#### What AI can do in loan management

##### Answer questions about the portfolio

A conversational assistant lets staff ask, in plain English, things they would otherwise hunt for across reports: "Which loans are due next week?", "How is the Central branch performing this month?", "How many loans are more than 30 days late?" It saves navigating menus and building reports for a one-off question.

##### Draft records from a description

An assistant can prepare a borrower or a loan from a description, such as "a 500 loan for three months to a borrower named Amina", filling in the form fields so the officer only reviews and confirms.

##### Explain and summarize

It can summarize a loan's history, explain why a balance is what it is, or describe a report in words.

##### Quote scenarios

It can compute an early-settlement quote under different assumptions, provided the calculation is done by real code rather than guessed.

#### What AI should not do on its own

- **Invent numbers.** Language models can produce fluent, plausible and wrong figures. In lending, a wrong balance or date is not a small error.
- **Make changes without confirmation.** Creating a loan, recording a payment or editing a borrower must not happen unless a person reviews and approves the exact change.
- **Make credit decisions.** Whether to lend, at what price and to whom is a policy and judgement decision, with legal implications, that belongs to people and to your approval rules.
- **See more than the user may see.** An assistant must respect roles: a cashier should not learn things through the assistant that they cannot see in the system.
- **Set policy.** Choosing a settlement discount, waiving a penalty or changing an interest rate are decisions for your institution.

#### The safeguards to look for

When a vendor says "AI-powered," ask about each of these:

1. **Are figures computed by code, not by the language model?** The assistant should call tools that query your data and calculate results, then report them.
2. **Are answers checked?** Ideally the final text is verified against the tool results, so a number that does not match is caught.
3. **Does it show its sources?** You should be able to see which records or reports an answer came from.
4. **Does every change need confirmation?** Look for a review step showing exactly what will change, before anything is saved.
5. **Are permissions respected?** The assistant should have the same access as the signed-in user, no more.
6. **Can it be switched off?** An administrator should be able to disable it for the institution.
7. **Which provider processes your data?** Know whether your data is sent to a third-party AI provider, and what the vendor's terms say about it.
8. **What does it refuse to do?** A good assistant says "I can't find that" rather than guessing.

#### Where AI goes wrong

- **Confident errors.** The fluent tone hides mistakes.
- **Ambiguous questions.** "Last month" can mean calendar or rolling; a good assistant asks or states its assumption.
- **Stale or partial data.** Answers are only as current as the data queried.
- **Overreach.** Asked to do something outside its remit, a poorly built assistant improvises.
- **Privacy.** Sending borrower data to an external service without safeguards.

#### What AI does not replace

- **Your approval workflow.** Approvals and audit trails still apply.
- **Your credit policy and staff judgement.**
- **Reports and accounting.** The ledger and reports remain the record of truth.
- **Compliance.** AI does not decide what the law requires.

#### An example of a safe workflow

An officer asks, "Create a 1,000 loan for Amina, 12 months, monthly, on the standard product." The assistant finds the borrower, drafts the loan and shows a preview listing every field, including the schedule. The officer reviews the details and clicks confirm. Only then is the loan saved, subject to the same validation and approval rules as if the officer had typed it in. The assistant never bypassed a control; it saved typing.

#### Questions to ask a vendor about AI

- Where do the numbers come from?
- How are they verified?
- Can I see sources for each answer?
- Does every write action need explicit confirmation?
- How does the assistant respect roles?
- Which third-party AI providers are used, and can I turn it off?
- What is the monthly usage limit, if any?
- What does the assistant decline to do?

#### How LoanTabs approaches AI

The LoanTabs AI portfolio assistant is built around these safeguards. It answers questions about loans, borrowers, payments and reports; figures in its answers are checked against computed results from your data; it shows the sources it used; and it can prepare records, but every proposed change appears as a field-by-field diff and waits for a staff member to confirm. It works within the signed-in user's role, gives early-settlement scenarios computed by code, and an administrator can switch it on or off for the institution. The model is chosen by LoanTabs, not by each institution. See the [AI portfolio assistant](https://www.loantabs.com/features/ai-assistant/) page for details.

#### FAQ

##### Can AI approve loans automatically?

It should not. Approvals are governed by your rules and people. LoanTabs' assistant can prepare a loan, but a person confirms and the normal approval workflow applies.

##### Is it safe to give an AI assistant access to loan data?

It can be, if the assistant respects roles, verifies numbers, needs confirmation for changes and the vendor's terms cover how data is processed. Ask each question above.

##### What can AI do for a small lender?

Save time on questions and data entry: finding due loans, summarizing branch performance, drafting records and quoting settlements.

##### Will AI replace loan officers?

No. It helps them find information and enter data faster. Decisions about people and money stay with people.

##### How do I know the AI's numbers are right?

Look for computed results, verification against your data and visible sources, then spot-check against a report.

:::cta
See an AI assistant that shows its sources and asks before it changes anything.
:::

### Cloud-based loan management software: benefits, risks and questions to ask

URL: https://www.loantabs.com/resources/cloud-based-loan-management-software/
Published: 2026-09-30

:::answer
Cloud-based loan management software runs on the provider's servers and is used through a web browser. There is nothing to install, updates happen automatically and every branch shares one live record. The trade-offs are that it needs an internet connection and that you rely on the provider's security and continuity.
:::

Most new loan management software is delivered from the cloud. For a lender, that changes practical things: where your loan book physically lives, who maintains it, how branches share it, and what you have to trust the vendor to do. This guide explains the model, weighs the benefits and risks honestly, and lists the questions to ask before you commit.

#### What "cloud-based" means for a lender

Cloud-based (also called web-based, online or SaaS: software as a service) means:

- The software and your data are hosted by the vendor, on servers you do not own.
- Staff sign in using a web browser on any device.
- The vendor maintains, updates and secures the platform.
- You pay a subscription rather than buying a licence and hardware.

The alternative is **installed** (on-premise) software: you buy or license it, install it on your own computer or server, and maintain it yourself. Some products also offer a private-cloud or hosted installation, which sits between the two.

#### Cloud vs installed loan software

| | Cloud-based | Installed |
| --- | --- | --- |
| Where the data lives | Vendor's cloud infrastructure | Your computer or server |
| Access | Any device with a browser and internet | The machine, or a remote-access setup |
| Updates | Automatic | You install them |
| Multiple branches | One shared record | Needs replication or remote access |
| Up-front cost | Low; a subscription | Licence plus hardware |
| Ongoing cost | Subscription | Maintenance, backups, IT time |
| Internet dependence | Yes | Often no |
| Control | Vendor controls the platform | You control the environment |
| Responsibility for security | Shared: vendor and you | Mostly you |

#### The benefits

- **No servers to run.** No hardware to buy, patch or replace. For a small lender without IT staff, this is often decisive.
- **One record for every branch.** Head office and branches see the same live data, so there are no versions to reconcile.
- **Updates without effort.** New features and fixes arrive without an install.
- **Access anywhere.** A manager can check the portfolio from anywhere with a connection.
- **Predictable cost.** A subscription is easier to budget than a licence plus maintenance.
- **Faster start.** You can be working within days, not weeks.

#### The risks and limits

- **You need internet.** If connectivity is unreliable, work stops. Some cloud loan systems, including LoanTabs, have no offline mode.
- **You depend on the vendor.** If the vendor has an outage, changes pricing or stops trading, you are affected. Ask about continuity and exit.
- **Security is shared.** The vendor secures the platform; you secure your users, passwords and devices.
- **Data location and law.** Some jurisdictions restrict where personal or financial data may be stored. Check the rules that apply to you and ask where the vendor hosts data.
- **Customization can be limited.** A shared platform may not bend to unusual requirements without a custom engagement.

#### Questions to ask about security

You do not need to be a security expert to ask sensible questions. A trustworthy vendor answers plainly.

1. **Where is my data hosted**, and on which infrastructure provider?
2. **How is my data separated from other customers'?**
3. **Is data encrypted** in transit and at rest?
4. **How is access controlled?** Roles, permissions, and how sign-in works.
5. **What activity is logged**, and can I see who changed what?
6. **What happens to my data if I leave?** Can I export it all, and is it deleted afterwards?
7. **Have there been incidents**, and how were they handled?
8. **What do your legal terms say** about data processing? See the vendor's privacy policy and data processing terms.

Be wary of claims that cannot be checked, such as vague statements about "bank-grade" security. Specific, verifiable statements are better. Ask about what is not in place, too: for example, whether multi-factor authentication is available.

#### Questions to ask about continuity

- What is the vendor's uptime record, and do they publish status information?
- How are backups handled, and how quickly can data be restored? (Ask directly; do not assume.)
- What happens to my access and data if the vendor is acquired or closes?
- Is there a written service commitment, and what does it cover?

#### Cloud and connectivity in practice

If you lend in an area with patchy internet, cloud software still works if your office has a stable connection, even if your field staff do not. A typical pattern is that field officers collect payments on paper or by mobile money and the office records them online at the end of the day. That works with any system that supports manual entry and a reconciliation routine. If you need staff to work fully offline at the point of lending, check carefully whether the product supports it. See [mobile money loan repayments](https://www.loantabs.com/resources/mobile-money-loan-repayments/) for reconciliation routines.

#### Moving to the cloud from spreadsheets or desktop software

Migrating is mostly a data task. Clean your existing records, import a sample, reconcile it against the old system, run in parallel for a short while, then switch. Our guide to [migrating your loans from Excel](https://www.loantabs.com/resources/migrate-loans-from-excel/) walks through it.

#### How LoanTabs handles the cloud

LoanTabs is cloud-based loan management software delivered through a web browser. It runs on managed AWS cloud services; data is encrypted in transit over HTTPS and stored with AWS-managed encryption at rest; and each institution's records are separated because every request is authorized against the institution the signed-in user belongs to. Access inside an institution follows 11 staff roles. LoanTabs needs an internet connection and has no offline mode. There is more on the [security page](https://www.loantabs.com/security/), and the [online loan management system](https://www.loantabs.com/online-loan-management-system/) page shows what staff can do in the browser.

#### FAQ

##### What is cloud-based loan management software?

Loan management software hosted by the provider and used through a web browser, without installing anything on your own computers.

##### Is cloud-based loan software safe?

It can be as safe as or safer than an office server, if the vendor separates customers, encrypts data and controls access. Ask specific questions and check the answers.

##### Can I use cloud-based loan software without reliable internet?

You need a connection to use it. Many lenders record payments at the office after collecting in the field.

##### What happens to my data if I stop using cloud software?

It depends on the vendor. Confirm before you sign that you can export your data and how it is handled afterwards.

##### Is cloud software more expensive than installed software?

The subscription can look higher over time, but installed software adds hardware, maintenance and IT time. Compare the full cost over several years.

:::cta
Try cloud-based loan management software: 30-day free trial, no credit card.
:::

### Collateral vs guarantor: which security should a lender ask for?

URL: https://www.loantabs.com/resources/collateral-vs-guarantor/
Published: 2026-09-30

:::answer
Collateral is an asset the borrower pledges that the lender can take and sell if the loan is not repaid. A guarantor is a person or company that promises to repay if the borrower cannot. Collateral secures the loan against a thing; a guarantee secures it against a person. Many lenders use both, depending on the loan.
:::

Lenders ask for security because even good borrowers sometimes cannot pay. Security does two jobs: it improves recovery if things go wrong, and, often more importantly, it makes the borrower think harder about paying. The two common forms are collateral and guarantors. They are frequently confused, and the difference matters, both in how you assess a loan and in what you can do when it goes bad.

#### What is collateral?

Collateral (also called security) is an asset the borrower pledges to secure the loan. If the borrower defaults, the lender may take the asset and sell it, subject to the law and the agreement, to recover what is owed.

Common examples:

- **Vehicles**, such as a car, motorbike or truck
- **Land and buildings**
- **Equipment and machinery**
- **Inventory or stock**
- **Savings or deposits** held by the lender
- **Other valuables**, such as jewellery or electronics

#### What is a guarantor?

A guarantor (or guarantee) is a third party who agrees to repay the loan if the borrower does not. They are not the borrower and do not receive the money, but they take on the obligation if the borrower fails. A guarantor might be a relative, an employer, a business partner, a group member or another company.

#### Collateral vs guarantor at a glance

| | Collateral | Guarantor |
| --- | --- | --- |
| What secures the loan | An asset | A person or company's promise |
| How you recover | Take and sell the asset | Claim from the guarantor |
| Main value | Something concrete to realize | Extra pressure and a second source of repayment |
| Main risk | Asset falls in value, is hard to sell or has legal defects | Guarantor cannot or will not pay, or cannot be found |
| Documentation | Ownership proof, valuation, pledge or charge documents | Signed guarantee, ID, contact details, financial standing |
| Cost to set up | Valuation, registration, storage or insurance | Verification, agreement |
| Works well for | Larger loans, assets easy to value and sell | Smaller loans, group and social-guarantee lending |

#### Which should you ask for?

There is no single right answer. Consider:

- **Loan size.** Larger loans justify the cost of valuing and registering collateral. Very small loans often cannot bear it.
- **Borrower profile.** A salaried borrower may be well served by an employer's confirmation or a guarantor. A business owner may have equipment or stock.
- **Ease of enforcement.** Can you actually take and sell the asset, and would it fetch its stated value? A guarantee is worthless if you cannot find or enforce it.
- **Local law.** Rules on pledging assets, registering security and enforcing guarantees vary greatly.
- **Your policy.** Set clear rules: for example, unsecured up to a small first-loan cap, a guarantor above it, and collateral above a higher threshold.

Some lenders require both above a certain size, so that if the collateral falls short, the guarantor is a second source.

#### What makes collateral good?

Judge collateral on five things:

1. **Ownership.** The borrower actually owns it, and it is free of other claims.
2. **Value.** A realistic valuation, with a margin for the discount at forced sale.
3. **Marketability.** How quickly and easily it can be sold.
4. **Durability.** Whether it holds value, and whether it can be insured.
5. **Control.** Whether you can secure it, hold the documents, or register your interest.

A common practice is to require collateral worth more than the loan, precisely because forced sales fetch less than a normal sale.

#### What makes a guarantor good?

- They are **identifiable and reachable**: a verified ID, address and phone number.
- They have **means** to pay, not just goodwill.
- They **understand the commitment** and have signed a clear guarantee.
- They are **independent enough** to be useful; a guarantor who depends on the borrower's income adds little.
- Their **position is documented**: employment, business, assets.

Guarantors who did not understand what they signed often refuse to pay, and courts may side with them. Explain the obligation, in writing and in person.

#### Recording security properly

Security only helps if you can find it and prove it. Record, at the time of lending:

**For collateral:** description, type, value and valuation date, serial or registration numbers, location, insurance, copies of ownership documents, and status (held, released, seized).

**For guarantors:** name, ID, address and phone number, relationship to the borrower, the signed guarantee, and which loan they guarantee.

Attach documents to the loan record, not a separate drawer. Review security periodically: has the asset been sold, damaged or uninsured; can you still reach the guarantor?

#### Enforcing security

When a loan defaults, the steps typically are:

1. **Contact the borrower** and try to agree a plan.
2. **Write to the guarantor**, per the agreement, giving notice.
3. **Follow the legal process** for taking and selling collateral, which is often strictly regulated. Self-help repossession can be unlawful in many places.
4. **Record the outcome**: proceeds, costs and any remaining balance.

Get legal advice on enforcement in your jurisdiction before you rely on any security.

#### Common mistakes

- **Taking collateral you cannot enforce or sell.**
- **Overvaluing assets**, or relying on the borrower's own valuation.
- **No proof of ownership.**
- **Guarantors who are not really independent** or cannot be found.
- **Not explaining the guarantee** to the guarantor.
- **Failing to insure** collateral.
- **Not updating status** when collateral is released or seized.
- **Treating security as a substitute for assessing repayment ability.**

Security is a second line of defence. The first is lending only to borrowers who can repay. See [how to reduce loan defaults](https://www.loantabs.com/resources/how-to-reduce-loan-defaults/).

#### Collateral and guarantors in LoanTabs

LoanTabs records **guarantors** and links them to the loans they guarantee, and records **collateral** as vehicle, land, building, equipment, inventory, savings or other, with value, serial or registration numbers, insurance details and status (active, released or seized). Documents can be attached to the borrower and loan, up to 10 files of up to 10 MB each per record. See [borrower management](https://www.loantabs.com/features/borrower-management/) and [loan origination](https://www.loantabs.com/features/loan-origination/).

#### FAQ

##### What is the difference between collateral and a guarantor?

Collateral is an asset pledged as security. A guarantor is a person or company who promises to repay if the borrower does not.

##### Can a loan have both collateral and a guarantor?

Yes. Many lenders require both above a certain loan size.

##### Is a guarantor liable for the whole loan?

It depends on the guarantee and local law. Read the terms: some guarantees cover the full debt, others a limited amount.

##### What is the best collateral for a small loan?

Something valuable relative to the loan, easy to value and sell, and legally clean: for example, a vehicle with clear title, or savings held by the lender.

##### Do I need collateral for every loan?

No. Many small loans are unsecured or backed by a guarantor. Set thresholds in your policy.

:::cta
Record guarantors and collateral against every loan, with values, documents and status.
:::

### Days past due and loan aging: how to measure and report late loans

URL: https://www.loantabs.com/resources/days-past-due-and-loan-aging/
Published: 2026-09-30

:::answer
Days past due (DPD) is the number of days since a loan's oldest unpaid installment was due. Loan aging groups loans into buckets by DPD, such as current, 1-30, 31-60, 61-90, 91-180 and 181+ days, so you can see how much of the portfolio is late and how late. It is the base for PAR and provisioning.
:::

"Late" is not one thing. A borrower who is three days behind and one who is three months behind are different problems, and lumping them together hides the risk. Days past due and loan aging give lateness a number, so you can measure it, report it and act on it.

#### What is days past due?

Days past due is the count of days between the due date of the oldest installment that is not fully paid and today. If the installment due on 1 March is unpaid on 20 March, the loan is 19 days past due.

Three rules keep the count consistent:

1. **Count from the oldest unpaid installment.** If several installments are overdue, the earliest one sets the DPD.
2. **A partial payment does not necessarily reset the clock.** If the installment is still not fully paid after allocation, it stays overdue. How payments are allocated matters, as it decides which balances are cleared first. See [repayment allocation order](https://www.loantabs.com/resources/loan-repayment-allocation-order/).
3. **A grace period is a policy, not a different count.** If you allow 5 days before a loan is treated as late, say so, and apply it consistently.

#### A worked example

A borrower has a 12-month loan with installments due on the first of each month.

- Installment 3 was due on 1 March and was not paid.
- Installment 4 was due on 1 April and was not paid.
- Today is 20 April.

The oldest unpaid installment is number 3, due on 1 March, so DPD = 50 days (31 days from 1 March to 1 April, plus 19 more to 20 April). The loan sits in the **31-60** bucket even though installment 4 is only 19 days late.

#### What is loan aging?

Loan aging (also called an aging report or arrears aging) groups the portfolio into buckets by DPD and reports the outstanding balance and number of loans in each. Common buckets are:

| Bucket | Meaning |
| --- | --- |
| Current | Not overdue |
| 1 to 30 days | Early arrears |
| 31 to 60 days | Arrears with a pattern forming |
| 61 to 90 days | Serious arrears |
| 91 to 180 days | High risk of loss |
| 181+ days | Likely loss |

Some lenders use different cut-offs, such as 1-7, 8-30 and 31-90, and some regulators prescribe their own. Whatever you choose, keep the buckets consistent so you can compare over time.

#### Reading an aging report

A typical report lists each bucket with the number of loans, the outstanding balance and its share of the portfolio. For example, with a 500,000 portfolio:

| Bucket | Loans | Balance | Share |
| --- | --- | --- | --- |
| Current | 158 | 430,000 | 86.0% |
| 1-30 | 14 | 30,000 | 6.0% |
| 31-60 | 8 | 20,000 | 4.0% |
| 61-90 | 3 | 8,000 | 1.6% |
| 91-180 | 3 | 7,000 | 1.4% |
| 181+ | 2 | 5,000 | 1.0% |

What to look at:

- **The total outside Current.** Here 14% of the portfolio is overdue to some degree.
- **The shape.** Most of it in 1-30 is a normal cycle of small delays; a swelling 31-90 range means problems are aging rather than being resolved.
- **Change over time.** Compare with last week and last month. A bucket that grows consistently needs a response.
- **Concentration.** Split by officer, branch and product to find where lateness comes from.

#### From aging to PAR and provisions

Two of the most important risk measures come straight from the aging report:

- **Portfolio at risk.** Add the balances in the buckets beyond a threshold. Here PAR30 is (20,000 + 8,000 + 7,000 + 5,000) ÷ 500,000 = 8.0%. See [what is portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/).
- **Provisions.** Apply a percentage to each bucket, rising with age, to estimate expected losses. See [loan loss provisioning](https://www.loantabs.com/resources/loan-loss-provisioning-and-write-offs/).

#### Roll rates

A roll rate shows how loans move between buckets over a period: for example, the share of loans in 1-30 that moved to 31-60 next month. If roll rates are high, lateness is turning into serious arrears. Low roll rates mean you are resolving problems. Roll-rate analysis needs consistent history, which is another reason to keep buckets fixed.

#### Common mistakes

- **Counting from the wrong installment.** Use the oldest unpaid one.
- **Not accounting for partial payments** or allocation order.
- **Changing bucket definitions** and losing comparability.
- **Restructuring loans and resetting DPD** without recording it, which flatters the report.
- **Ignoring the number of loans**, only balances. A few large loans can hide many small ones.
- **Reporting only monthly.** Weekly reviews catch problems earlier.

#### Aging in LoanTabs

LoanTabs includes an aging report with these buckets (current, 1-30, 31-60, 61-90, 91-180 and 181+ days), alongside the delinquency worklist, daily collection sheet, portfolio at risk, collections performance, a configurable provisions matrix with loan classification (standard, watch, substandard, doubtful and loss), and vintage and roll-rate analysis. Payments follow a repayment order you set per product, which decides what a partial payment clears. See [collections and arrears reports](https://www.loantabs.com/features/delinquency-and-collections-reports/) and the wider [collections guide](https://www.loantabs.com/resources/loan-collections-and-arrears-guide/).

#### FAQ

##### What does days past due mean?

The number of days since the oldest unpaid installment on a loan was due.

##### What are aging buckets?

Ranges of days past due, such as 1-30 or 31-60, used to group loans by how late they are.

##### How is loan aging different from PAR?

Aging shows the distribution of lateness across buckets. PAR adds up the buckets beyond a threshold into a single risk percentage.

##### Does a partial payment reduce days past due?

Only if it fully pays the oldest unpaid installment. Otherwise the installment remains overdue, and its age continues to count.

##### How often should I review the aging report?

Weekly for operations and monthly for management and reporting.

:::cta
Run an aging report on your own loan book: 30-day free trial, no credit card.
:::

### Effective interest rate on flat rate loans: how to calculate the true cost

URL: https://www.loantabs.com/resources/effective-interest-rate-on-flat-rate-loans/
Published: 2026-09-30

:::answer
The effective interest rate on a flat rate loan is the reducing balance rate that would produce the same payments. It is always higher than the quoted flat rate, roughly 1.7 to 1.8 times higher on typical loans. A quick approximation is 2 × n × flat rate ÷ (n + 1), where n is the number of installments.
:::

A flat rate is easy to quote and easy to misread. "12% flat" sounds like 12%, but the borrower is repaying principal all the time while still being charged interest on the original amount, so the real cost is much higher. The effective interest rate puts flat rate loans on the same footing as reducing balance loans, so borrowers and lenders can compare them honestly.

#### Why the quoted flat rate understates the cost

On a flat rate loan, interest is calculated once on the original principal and spread across the installments. Take **1,000 at 12% flat for 12 months**:

- Interest = 1,000 × 12% × 1 = 120
- Total repayable = 1,120
- Installment = 1,120 ÷ 12 = 93.33

After the first installment the borrower owes less than 1,000, yet the next month's interest is calculated as if they still owed all of it. By the last month they owe about 93 but are charged interest as if they owed 1,000. The average amount the borrower actually holds is roughly half the loan, so the real rate is roughly double the quoted one.

#### A quick approximation

For loans repaid in equal installments, a widely used rule of thumb is:

**Effective annual rate ≈ 2 × n × flat rate ÷ (n + 1)**

where n is the number of installments and the flat rate is the annual figure.

For 12 installments at 12% flat: 2 × 12 × 12% ÷ 13 = **22.15%**. It slightly overstates the exact answer, but it is close enough for a quick check, and it makes the point clearly: about 22% is the cost, not 12%.

#### The exact method

The exact effective rate is the internal rate of return of the loan cash flows: the periodic rate at which the installments repay the principal over the number of periods.

1. Calculate the total repayable and the installment.
2. Find the rate r that satisfies: **Principal = Installment × (1 − (1 + r)^−n) ÷ r**.
3. Multiply r by the number of periods in a year to get the annualized (nominal) rate, or compound it to get the effective annual rate.

There is no algebraic shortcut for step 2, so use a spreadsheet's RATE function (in Excel or Google Sheets: `=RATE(12, -93.33, 1000)`) or a calculator.

For 12% flat over 12 months, RATE returns about **1.79% a month**, which is:

- **21.5%** a year as a nominal annualized rate (1.79% × 12), and
- **23.7%** as an effective annual rate once monthly compounding is included.

Most regulators and comparison tools use the nominal annualized figure (often called the annual percentage rate, APR), but the definition varies by country, so check how yours is defined.

#### Worked examples

##### 12% flat, 12 months, monthly installments

- Installment: 93.33
- Exact rate: about 1.79% a month, **21.5% APR**
- Rule of thumb: 22.15%

##### 24% flat, 6 months, monthly installments, on 500

- Interest = 500 × 24% × 0.5 = 60; total repayable = 560; installment = 93.33
- Exact rate: about 3.34% a month, **40.0% APR**

##### 10% flat in total, 10 weekly installments, on 1,000

Here the 10% is charged for the whole 10-week term, not per year.

- Interest = 100; total repayable = 1,100; installment = 110
- Exact rate: about 1.77% a week
- Annualized: about 1.77% × 52 = **92% a year** (over 149% if weekly compounding is included)

The last example shows why short-term, high-frequency loans can be very expensive even when the flat charge looks small. A "10%" charge over ten weeks is not a 10% loan.

#### Effective rate for different flat rates

For monthly equal installments, the effective annualized rate for common flat rates is approximately:

| Flat rate (per year) | Effective rate, 6-month loan | 12-month loan | 24-month loan |
| --- | --- | --- | --- |
| 10% | 16.9% | 18.0% | 18.2% |
| 12% | 20.3% | 21.5% | 21.6% |
| 15% | 25.3% | 26.6% | 26.6% |
| 18% | 30.2% | 31.7% | 31.5% |
| 24% | 40.0% | 41.7% | 40.9% |

#### Adding fees to the effective rate

Fees raise the effective rate further, because the borrower pays them on top of interest. The correct way to include a fee is to treat it as a cash flow: if a fee is deducted at disbursement, the borrower receives less than the principal but repays the full installments, so run the rate calculation with the smaller amount received. For example, a 5% fee deducted from a 1,000 reducing balance loan (12% a year, 12 months) means the borrower receives 950 and repays 12 installments of 88.85, which is an annualized rate of about 21.9%, against 12% without the fee. Our guide to [deductible and capitalized loan fees](https://www.loantabs.com/resources/loan-fees-deductible-vs-capitalized/) explains the difference.

#### Should you show borrowers the effective rate?

In many countries you must. Consumer-credit and microfinance rules often require lenders to disclose the total cost of credit, or an APR, before the borrower signs. Even where it is not required, showing the total repayable in currency is good practice: it is the number the borrower actually cares about, and it prevents disputes later. If you lend on flat rate terms, publish both the flat rate and the total to repay.

#### Flat rate loans in LoanTabs

LoanTabs supports flat rate loans alongside declining and reducing balance, interest-only and compound methods, set per loan product. When you create a loan, the live schedule preview shows every installment and the total to be repaid, so you can quote a borrower the real cost. You can compare methods on the same loan by creating one product for each. See [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/) for every method, and [flat rate vs reducing balance interest](https://www.loantabs.com/resources/flat-rate-vs-reducing-balance-interest/) for a side-by-side.

#### FAQ

##### What is the effective interest rate?

The effective interest rate is the true annual cost of a loan once the timing of payments (and often fees) is taken into account. For a flat rate loan it is the reducing balance rate that gives the same payments.

##### How do I calculate the effective rate of a flat rate loan in Excel?

Calculate the installment, then use `=RATE(number_of_installments, -installment, principal)` and multiply by the number of periods per year.

##### Is a 10% flat rate the same as a 10% reducing balance rate?

No. A 10% flat rate is equivalent to roughly 18% on a reducing balance basis for a 12-month loan.

##### Why do regulators require APR disclosure?

Because flat rate and reducing balance offers are otherwise hard to compare. A single, consistent measure lets borrowers see which loan is cheaper.

:::cta
Show borrowers the schedule and the total to repay before you save the loan.
:::

### Flat rate vs reducing balance interest: what a borrower really pays

URL: https://www.loantabs.com/resources/flat-rate-vs-reducing-balance-interest/
Published: 2026-09-30

:::answer
Flat rate interest is charged on the original loan amount for the whole term, even as the borrower repays it. Reducing balance interest is charged only on the amount still owed, so it falls with each payment. For the same quoted rate, flat rate costs the borrower far more, often close to double.
:::

A lender who says "12% interest" could mean two very different things. On a flat rate loan, 12% is charged on the full amount for the full term. On a reducing balance loan, 12% is charged on whatever is still owed each month. The label is the same, the cost is not. Because this choice touches every loan product, it is worth understanding exactly how the two methods behave.

This guide compares them on one loan: **1,000 borrowed for 12 months, repaid in 12 equal monthly installments**.

#### How flat rate interest is calculated

With a flat rate, interest is calculated once, on the original principal, for the entire term.

- Interest = 1,000 × 12% × 1 year = 120
- Total repayable = 1,120
- Monthly installment = 1,120 ÷ 12 = 93.33

Every month the borrower pays 93.33, made up of 83.33 of principal and 10.00 of interest. The interest never changes, even though the amount owed shrinks each month. In month 12 the borrower owes only 83.33 but still pays 10.00 in interest on it, a 12% charge for that month on a balance that is a twelfth of the original.

#### How reducing balance interest is calculated

With reducing balance interest, each month's interest is the monthly rate times the balance still owed.

- Monthly rate = 12% ÷ 12 = 1%
- Month 1 interest = 1,000 × 1% = 10.00
- Month 6 interest is about 5.98, on a balance of about 597.79
- Month 12 interest is about 0.88, on a balance of about 87.97

With equal installments the payment is 88.85 a month, giving total interest of **66.19**. The borrower pays less each month and far less in total, because they are only charged for the money they still have.

#### Side by side on the same loan

| | Flat rate 12% | Reducing balance 12% |
| --- | --- | --- |
| Monthly installment | 93.33 | 88.85 |
| Total interest | 120.00 | 66.19 |
| Total repaid | 1,120.00 | 1,066.19 |
| Interest in month 1 | 10.00 | 10.00 |
| Interest in month 12 | 10.00 | 0.88 |
| Extra cost of flat rate | 53.81 more | |

In the first month both loans charge the same 10.00. By month 12 they are very far apart. Flat rate keeps charging interest on principal the borrower has already repaid.

#### Why flat rate loans cost more than they look

A borrower on the flat rate loan effectively has the use of the full 1,000 only in the first month. From then on they have less, and a smaller and smaller amount, yet they pay the same interest. To compare properly you need the rate that would produce the same payments on a reducing balance basis, the effective rate.

For this loan, 12% flat is equivalent to about **21.5%** a year on a reducing balance basis. The table shows how the gap grows with the quoted rate, for 12-month loans with equal monthly installments:

| Quoted flat rate (per year) | Equivalent reducing balance rate, 6 months | 12 months | 24 months |
| --- | --- | --- | --- |
| 6% | about 10.2% | about 10.9% | about 11.1% |
| 10% | about 16.9% | about 18.0% | about 18.2% |
| 12% | about 20.3% | about 21.5% | about 21.6% |
| 15% | about 25.3% | about 26.6% | about 26.6% |
| 18% | about 30.2% | about 31.7% | about 31.5% |
| 24% | about 40.0% | about 41.7% | about 40.9% |

A useful rule of thumb: a flat rate is roughly **1.7 to 1.8 times** as expensive as the same number quoted on a reducing balance basis. Our detailed guide to the [effective interest rate on flat rate loans](https://www.loantabs.com/resources/effective-interest-rate-on-flat-rate-loans/) shows how to calculate the exact figure.

#### Which is better for the borrower? For the lender?

For the borrower, reducing balance is almost always cheaper for the same headline rate, and it rewards early repayment: pay off principal sooner and you stop paying interest on it. On a flat rate loan an early payoff often saves little unless the agreement gives a rebate.

For the lender, flat rate is simple to explain and produces a higher yield for the same label. That is exactly why regulators in many countries require lenders to disclose the effective rate or total cost of credit, so that borrowers can compare a flat rate offer with a reducing balance one. If you lend to borrowers who compare offers, expect them to compare effective costs, and price accordingly.

There is also a practical point: flat rate is easy to compute by hand, which is why it grew up in small lending. Once you have software that does the arithmetic, that advantage disappears.

#### How to compare two loan offers fairly

1. **Ask for the total repayable**, in currency, not only the rate.
2. **Ask how often payments are made** and for how long.
3. **Ask about fees** and how they are taken: deducted at the start, or added to the loan. See [deductible vs capitalized fees](https://www.loantabs.com/resources/loan-fees-deductible-vs-capitalized/).
4. **Compare the total repaid**, or convert both to an effective annual rate.

If one lender quotes 15% flat and another 24% reducing balance for the same 12 months, the effective rates are roughly 26.6% and 24%, so the "higher" 24% offer is actually cheaper.

#### Choosing a method for your loan products

- Use **reducing balance** for larger or longer loans, for formal lending, and wherever borrowers or regulators expect it.
- Use **flat rate** only where your market expects it, and always disclose the total cost.
- If you offer both, keep them as **separate loan products** with clear names, so officers cannot mix them up.

#### Flat rate and reducing balance in LoanTabs

LoanTabs supports both. On each loan product you choose the interest method: flat, declining balance, reducing balance with equal installments or equal principal, interest-only, or compound. When you create a loan, the live schedule preview shows every installment and the total, so you can compare the two methods on the same loan before you decide. See [loan origination](https://www.loantabs.com/features/loan-origination/) for how products and previews work, and the guide to [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/) for every method side by side.

#### FAQ

##### Is flat rate or reducing balance better?

Reducing balance is cheaper for the borrower at the same headline rate. Flat rate is simpler to quote and costs the borrower more, so it should always be accompanied by the total repayable.

##### How do I convert a flat rate to a reducing balance rate?

Work out the installment from the flat calculation, then find the periodic rate at which that installment repays the principal over the same number of periods. Most spreadsheets do this with the RATE function. For a 12-month loan the effective annual rate is roughly 1.75 times the flat rate.

##### Does flat rate interest change if the borrower pays early?

Not by itself. Because interest was calculated on the original principal, paying early only helps if the loan agreement gives a rebate on unearned interest. Reducing balance loans naturally cost less if repaid early.

##### Can I offer both methods?

Yes. Create a separate loan product for each so the method is fixed per product and clearly named.

:::cta
Compare flat and reducing balance on the same loan with a live schedule preview.
:::

### Free loan management software: your options and their trade-offs

URL: https://www.loantabs.com/resources/free-loan-management-software/
Published: 2026-09-30

:::answer
Free loan management software falls into three groups: spreadsheet templates, open-source systems you host yourself, and free trials of paid products. Each costs nothing to start, but each has a price in setup time, maintenance, missing features or a deadline. Choose the option whose trade-off you can live with.
:::

Free is attractive, especially for a small lender watching every cost. This guide is honest about what "free" actually gets you in loan software, the trade-offs behind each kind, and when it makes sense to pay.

#### The three kinds of free

##### 1. Spreadsheet templates

A downloadable Excel or Google Sheets template that calculates loan schedules and tracks payments.

**Good for:** a handful of loans, a first step off paper, learning how schedules work.
**Limits:**
- The calculations are formulas you must trust and maintain; one overwritten cell corrupts the book.
- No roles or permissions: anyone with the file can change anything.
- No audit trail of who changed what.
- Multi-user work causes version conflicts.
- Reports and accounting are manual.
- Recalculating after early, late or partial payments is by hand.

##### 2. Open-source software

Free-to-use systems whose source code is published, such as Apache Fineract, an open-source platform for financial institutions and microfinance.

**Good for:** organizations with technical staff, unusual requirements, or a wish to avoid vendor lock-in.
**Limits:**
- You host, secure, back up and upgrade it yourself, or pay someone to.
- Setup and customization take real expertise.
- Support comes from communities or paid consultants.
- The user interface may be built for developers or larger institutions rather than a solo lender.
- Total cost may exceed a subscription once you count IT time.

##### 3. Free trials and free tiers of paid software

Commercial products offering a time-limited trial, or a limited free tier.

**Good for:** testing a real product on your own data before paying.
**Limits:**
- A trial ends; a free tier is usually restricted by users, loans or features.
- Data you enter during a trial should be exportable, or you may have to re-enter it.

LoanTabs falls into this third group: it is not free software, but every plan starts with a **30-day free trial with full access and no credit card**, so you can test it on your own loans before deciding.

#### What free usually leaves out

Compare any free option against this list of things a lender ends up needing:

- **Correct schedules for your interest method,** including reducing balance and partial payments.
- **Receipts and statements** you can give borrowers.
- **Approval workflow** and staff roles.
- **Accounting** posted from loans and payments.
- **Portfolio-at-risk and aging reports.**
- **Support** when something goes wrong.
- **A record of changes** for audit.
- **Backups and security** you do not have to manage.

If most of these matter to you, a free template is a stepping stone, not a destination.

#### A rough cost comparison

Put numbers on "free". Suppose a lender with 60 active loans spends five hours a week on recalculating balances, recording payments and building reports, and values that time at even a modest hourly rate. Over a year that is around 260 hours. Add one or two errors that cost real money to fix or absorb, and the "free" spreadsheet is often the most expensive option. A subscription only wins if it genuinely saves that time, which is why you should test it on your own loans before paying.

#### When free is enough

- You have fewer than about 20 active loans and one person managing them.
- Loans are simple: one interest method, no fees, no approvals.
- You do not need to report to funders or a regulator.
- You are willing to check every formula.

#### When it is time to pay

Look for these signals:

- You spend hours each month recalculating balances or building reports.
- You have had a dispute over a balance you could not prove.
- A second person needs to work in the file.
- You are opening a second branch.
- A funder, bank or auditor asks for reports you cannot produce quickly.
- You found a formula error after the fact.

At that point a subscription costs less than the time and risk of staying on free tools. Our [Excel vs loan management software comparison](https://www.loantabs.com/compare/excel-vs-loan-management-software/) goes through the trade-offs side by side.

#### A sensible path

1. **Start with a template** if you are just beginning, but learn how schedules work. See [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/).
2. **Keep your data clean** in a consistent format from the start, so it can be imported later.
3. **Trial paid software early**, before you are in a hurry. A 30-day free trial with your own data tells you more than any brochure.
4. **Migrate when the signals appear.** See [how to migrate your loans from Excel](https://www.loantabs.com/resources/migrate-loans-from-excel/).

#### Free trial checklist

When you try a paid product on a free trial:

- Import a real sample of loans, not demo data.
- Compare the schedule and balance of three loans against your own calculation.
- Record early, late and partial payments and check the results.
- Run the reports you actually need.
- Check that you can export your data.
- Ask what happens to your data at the end of the trial.

#### FAQ

##### Is there free loan management software?

There are free spreadsheet templates, open-source platforms such as Apache Fineract, and free trials of paid software. None is free of cost once you count time, hosting and maintenance.

##### What is the best free loan management software?

It depends on your skills. A spreadsheet template suits a very small lender. Open source suits organizations with technical staff. A free trial suits anyone who wants to test a complete product.

##### Can I run a lending business on Excel?

For a small number of simple loans, yes. As volume, staff or branches grow, spreadsheets become risky.

##### Is LoanTabs free?

No. LoanTabs offers a 30-day free trial with full access and no credit card required, then paid plans. See the [pricing page](https://www.loantabs.com/pricing/).

##### What happens to my data after a free trial ends?

Ask before you start. With LoanTabs, choose a plan to keep your data and continue; see the [pricing FAQ](https://www.loantabs.com/pricing/).

:::cta
Test a complete loan management system on your own loans, free for 30 days.
:::

### How SACCO share capital and dividends work

URL: https://www.loantabs.com/resources/how-sacco-share-capital-and-dividends-work/
Published: 2026-09-30

:::answer
In a SACCO, members buy shares that form its share capital, and they also hold savings. At year-end, surplus is shared: dividends are paid on shares held, and interest on savings, at rates the members approve at the annual general meeting. Shares carry ownership and are usually not withdrawable like savings.
:::

Members of a savings and credit cooperative do two different things with their money, and the difference confuses many people: they **save**, and they **buy shares**. They are treated differently, earn differently and carry different rights. Understanding how share capital and dividends work is central to running a SACCO and to choosing software for one. This article explains the general model. Rules differ by country and by SACCO bylaws, so treat it as an overview and confirm the details with your cooperative law and bylaws.

#### Shares vs savings

| | Shares (share capital) | Savings (deposits) |
| --- | --- | --- |
| Purpose | Ownership and capital base | Members' own money held by the SACCO |
| Withdrawable? | Generally not, except on leaving, subject to rules | Yes, subject to the account terms |
| Return | Dividends, when declared | Interest, at the agreed rate |
| Rights | Membership and voting rights | None beyond the account |
| Risk | Can lose value if the SACCO makes losses | Usually protected before shares in a loss |
| Role in lending | Often used to set loan limits and as security | Often used to set loan limits and as security |

Share capital is the SACCO's permanent capital. It funds lending and absorbs losses. Savings are members' deposits, which the SACCO lends out but owes back to members.

#### What is share capital?

Share capital is the total value of shares held by members. Each member typically buys a minimum number of shares to join and may buy more, up to a limit. Many SACCOs restrict a single member's shareholding so that no one gains disproportionate control. In most cooperatives, voting is one member, one vote, regardless of shares.

Shares usually cannot be freely sold or traded. They are redeemed when the member leaves, at their value, subject to the bylaws and the SACCO's financial position.

#### Where do dividends come from?

At the end of the financial year, the SACCO calculates its **surplus**: income (interest on loans, fees, investment income) minus expenses (interest on savings, operating costs, provisions for loan losses). Part of the surplus goes to statutory and general reserves, as the law and bylaws require. The remainder can be distributed to members, mainly as **dividends on shares** and sometimes as **interest on savings** or a rebate on interest paid on loans.

The board recommends the distribution and members approve it at the **annual general meeting (AGM)**. Dividends can only be paid if the SACCO has sufficient distributable surplus and meets any capital requirements.

#### How dividends are calculated

A common method pays a dividend rate on each member's average or weighted share balance over the year, so that a member who bought shares in month 10 does not earn the same as one who held them all year.

**Example.** A SACCO's AGM approves a dividend of 10% on shares. Three members:

- **Amina** held 1,000 in shares all 12 months. Dividend = 1,000 × 10% = **100**.
- **Brian** held 1,000 for the first 6 months, then bought another 1,000 and held 2,000 for 6 months. Weighted average = (1,000 × 6 + 2,000 × 6) ÷ 12 = 1,500. Dividend = 1,500 × 10% = **150**.
- **Chipo** bought 1,200 in shares at the start of month 10 and held it for 3 months. Weighted average = 1,200 × 3 ÷ 12 = 300. Dividend = 300 × 10% = **30**.

Some SACCOs use the balance at year-end, or monthly balances, instead. The bylaws should say which. The choice matters: an end-of-year balance rewards late purchases, so many cooperatives prefer weighted or monthly balances.

#### Interest on savings

Interest on savings is usually paid on a schedule set by the bylaws, monthly, quarterly or annually, at a rate the board sets. It is an expense of the SACCO, paid before the surplus is calculated. In some SACCOs a further rebate or bonus is paid from surplus.

#### How share capital supports lending

Share capital and savings often determine how much a member may borrow. A typical rule allows loans up to a multiple of savings and shares, for example three times. This ties borrowing to the member's stake, which improves repayment discipline and gives the SACCO recourse: if a member defaults, the SACCO may set off the loan against the member's savings and shares, as the bylaws permit. Members also guarantee each other's loans, using their shares as backing.

#### What records a SACCO needs

- **A share register** listing each member's shares, purchases, transfers and redemptions.
- **Savings ledgers** for each member and account type.
- **Dividend and interest calculations**, with the rate approved and the basis used.
- **AGM minutes** recording the resolution approving the distribution.
- **Reserves** and how the surplus was allocated.
- **Member statements** showing shares, savings, loans and dividends.

Accurate records are essential. Disputes at the AGM usually come from unclear share balances or calculation methods.

#### Common problems

- **Members not understanding the difference between shares and savings.**
- **Unclear calculation basis** for dividends, leading to disputes.
- **Distributing dividends without sufficient surplus** or before provisions.
- **Share balances not reconciled** to the ledger.
- **Members exiting** and the SACCO unable to redeem shares.
- **Poor AGM records**, with no proof of the approved rate.

#### Software for shares and dividends

Software for a SACCO should maintain the share register, let you run a dividend calculation on your chosen basis, and post the results to member accounts and the ledger. Many general loan management systems do not include shares or dividends as standard. See [SACCO management software: what to look for](https://www.loantabs.com/resources/sacco-management-software-guide/).

#### LoanTabs and SACCO shares

LoanTabs handles a SACCO's **loan book**, accounting and reports as standard. **Share capital, share transactions, dividend declarations, member savings and AGM records are delivered as custom implementations on the Custom plan**, built to the SACCO's bylaws rather than offered as built-in features. If you need them, contact sales to scope the build. See the [SACCO solutions page](https://www.loantabs.com/solutions/saccos/) and [SACCO features](https://www.loantabs.com/features/sacco/).

#### FAQ

##### What is share capital in a SACCO?

The total value of shares members have bought. It forms the SACCO's capital base and represents members' ownership.

##### Can members withdraw their shares?

Generally not while they remain members. Shares are usually redeemed when a member leaves, subject to the bylaws and the SACCO's financial position.

##### What is the difference between a dividend and interest on savings?

A dividend is a share of surplus paid on shares, approved at the AGM. Interest on savings is paid at an agreed rate on deposits, as an expense of the SACCO.

##### How are SACCO dividends calculated?

Typically as a percentage of each member's share balance, often averaged over the year, at a rate approved by members at the AGM.

##### Who decides the dividend rate?

The board recommends it and members approve it at the AGM, within the law and the SACCO's financial position.

:::cta
Talk to sales about share, savings and dividend features built to your SACCO's bylaws.
:::

### How to calculate loan interest: methods, formulas and worked examples

URL: https://www.loantabs.com/resources/how-to-calculate-loan-interest/
Published: 2026-09-30

:::answer
To calculate loan interest, pick the method and apply the rate to the balance it is charged on. Flat interest uses the original principal for the whole term. Reducing balance interest is charged on what is still owed, so it falls with every payment. Compound interest is charged on principal plus earlier interest.
:::

Every loan product is built on an interest calculation method, and the method changes what the borrower pays far more than most people expect. Two loans quoted at "12%" can cost very different amounts. This guide explains the five methods lenders actually use, gives the formula for each, and works the same example through all of them so you can see the difference in real numbers.

All the examples use the same loan: **1,000 borrowed for 12 months at 12% a year, repaid in 12 monthly installments**. The currency does not matter; the arithmetic is the same.

#### The five methods at a glance

| Method | Interest is charged on | How payments behave | Typical use |
| --- | --- | --- | --- |
| Simple interest | Original principal, for the time outstanding | Depends on how repayments are structured | Short loans, group loans, quick quotes |
| Flat rate | Original principal, for the whole term, whatever has been repaid | Equal installments | Small consumer and microfinance loans |
| Reducing balance | The balance still owed each period | Equal installments, or equal principal | Most bank and formal loans |
| Interest-only | Full principal, until it is repaid | Interest each period, principal at the end | Bridge, short-term and revolving loans |
| Compound | Principal plus interest already added | Interest is added to the balance and grows | Savings, some long or accruing loans |

#### How do you calculate simple interest?

Simple interest is the easiest formula, and the foundation for the rest:

**Interest = Principal × Rate × Time**

For 1,000 at 12% a year for one year, interest is 1,000 × 0.12 × 1 = **120**. For three years it is 1,000 × 0.12 × 3 = **360**. The rate and the time must use the same unit: a 12% annual rate over 6 months uses a time of 0.5 years.

Simple interest never charges interest on interest. That makes it predictable and easy to explain to a borrower, which is why it is common in short loans and group lending. The catch is that "simple interest" describes the interest, not how the borrower repays. A loan can charge simple interest and still be repaid in installments, and how you structure those installments decides whether it behaves like a flat or a reducing balance loan.

#### How does flat rate interest work?

Flat rate interest calculates interest once, on the original principal, for the full term, and then divides the total by the number of installments.

- Interest = 1,000 × 12% × 1 year = **120**
- Total to repay = 1,000 + 120 = **1,120**
- Monthly installment = 1,120 ÷ 12 = **93.33**

The borrower pays 120 in interest even though they are repaying principal every month, so for most of the year they owe less than 1,000 but are still being charged as if they owed the full amount. That is why flat rate loans look cheap when quoted and cost much more than the number suggests. On this loan the true annual cost is about **21.5%**, not 12%. Our guide to the [effective interest rate on flat rate loans](https://www.loantabs.com/resources/effective-interest-rate-on-flat-rate-loans/) shows how to work that out.

Flat rate is popular because it is simple to explain and to compute by hand. If you offer flat rate loans, quote the total cost in currency as well as the rate, so borrowers can compare offers honestly.

#### How does reducing balance interest work?

With reducing balance (also called declining balance) interest, each period's interest is charged only on the balance still owed. As the borrower pays down principal, the interest charge shrinks.

For equal installments, the payment comes from the standard annuity formula:

**Payment = P × r ÷ (1 − (1 + r)^−n)**

where P is the principal, r is the interest rate per period (12% a year is 1% a month), and n is the number of periods.

For our loan: 1,000 × 0.01 ÷ (1 − 1.01^−12) = **88.85** a month, so the borrower repays 12 × 88.85 = **1,066.19**, of which **66.19** is interest.

In the first month, interest is 1,000 × 1% = 10.00, so 78.85 of the 88.85 payment reduces principal and the balance falls to 921.15. In month two, interest is 9.21 on the lower balance, so more of the payment goes to principal. By month 12 interest is 0.88. Our guide to [loan amortization schedules](https://www.loantabs.com/resources/loan-amortization-schedule-explained/) sets out the full table.

There is a second common variation, **equal principal**. Principal is divided evenly (1,000 ÷ 12 = 83.33 a month) and interest is charged on the falling balance, so the payments start higher and decline: 93.33 in month one, 92.50 in month two, 91.67 in month three. Total interest is **65.00**, slightly less than equal installments because principal is repaid faster.

#### What are interest-only loans?

An interest-only loan charges interest each period on the full principal and repays the principal in one amount at the end.

- Interest each month = 1,000 × 1% = **10.00**
- Total interest over 12 months = **120.00**
- Principal of 1,000 is due at month 12

The monthly payments are the smallest of any method, which suits borrowers with lumpy income or a bridge to a known payment. The risk is the balloon at the end: if the borrower cannot repay the principal, the lender must refinance or collect. Lenders using interest-only should be careful about term and security.

#### How does compound interest work?

Compound interest charges interest on the principal plus any interest already added. The formula for a lump sum is:

**Amount = P × (1 + r)^n**

With 12% a year compounded monthly, 1,000 grows to 1,000 × 1.01^12 = **1,126.83** after a year, so interest is **126.83**, higher than simple interest's 120 because each month's interest itself earns interest.

Over longer periods the gap widens. After three years, simple interest at 12% is 360; compounded annually it is 404.93; compounded monthly it is 430.77. Compounding is standard for savings and deposits and appears in lending when interest accrues and is added to the balance, for example on a loan repaid in a single lump sum.

#### The same loan, five ways

Here is the same 1,000, 12-month, 12% loan under each method:

| Method | Monthly payment | Total interest | Total repaid |
| --- | --- | --- | --- |
| Flat rate | 93.33 | 120.00 | 1,120.00 |
| Reducing balance, equal installments | 88.85 | 66.19 | 1,066.19 |
| Reducing balance, equal principal | 93.33 falling to 84.17 | 65.00 | 1,065.00 |
| Interest-only | 10.00, then 1,010.00 in month 12 | 120.00 | 1,120.00 |
| Compound, accrued and repaid at the end | None until month 12 | 126.83 | 1,126.83 |

The rate on the label is identical, yet the flat rate loan costs nearly twice the interest of the reducing balance loan. This is the single most important idea in loan pricing: **the calculation method matters as much as the rate**.

You can test your own numbers in the [loan calculator](https://www.loantabs.com/tools/loan-calculator/), or compare the two most common methods side by side in the [flat vs reducing balance calculator](https://www.loantabs.com/tools/flat-vs-reducing-balance-calculator/).

#### Interest periods, nominal and effective rates

Loans quote rates per day, week, month, year or loan cycle. To compare them, convert to a common basis.

- A rate of 1% a month is a **nominal** rate of 12% a year, because 1% × 12 = 12%.
- The **effective** annual rate accounts for compounding: 1% a month compounded is (1.01^12 − 1) = **12.68%** a year.
- Some lenders calculate daily interest using 365 days a year, others 360. The difference is small but should be stated in the loan agreement.

When a rate is quoted without saying "per month" or "per year," ask. Confusing the two is a common source of disputes.

#### How fees change the real cost

Interest is not the only cost. A processing fee, an insurance charge or an admin fee raises the real cost of a loan, and how the fee is collected matters. A fee deducted at disbursement reduces the cash the borrower receives while the repayments stay the same. A fee added to the loan balance is repaid with interest.

On our example, a 5% fee (50) deducted from a reducing balance loan means the borrower receives 950 but still repays 88.85 a month, which lifts the annualized cost of the loan from 12% to roughly **21.9%**. If the same fee is added to the loan instead, the installment becomes 93.29 and the total repaid 1,119.49. Read more in [deductible vs capitalized loan fees](https://www.loantabs.com/resources/loan-fees-deductible-vs-capitalized/).

#### Which method should you choose?

- **Reducing balance** is the fairest to borrowers and the easiest to defend to regulators. It is the usual choice for larger, longer loans.
- **Flat rate** is simple, but the true cost is higher than the label suggests. If you use it, disclose the total cost and consider whether the borrower could compare it fairly.
- **Interest-only** suits short bridging loans with a clear repayment source and good security.
- **Compound** suits accruing loans repaid in a lump sum, and deposits.

Whatever you choose, apply it consistently per product, write it in the loan agreement, and make sure your software calculates it the same way you quote it. Local law may restrict methods, rate caps or disclosure, so check before you set products.

#### Calculating loan interest in LoanTabs

LoanTabs lets you set the interest method on each loan product: flat, declining balance, reducing balance (equal installments or equal principal), interest-only, or compound interest (accrued or equal installments). Interest can be a percentage or a fixed amount, charged per day, week, month, year or loan cycle. You can set minimum, default and maximum interest so officers cannot go outside policy.

When you create a loan, a live schedule preview shows every installment before you save, so you can check the numbers with the borrower. Read more on the [loan origination and servicing features](https://www.loantabs.com/features/loan-management/) page, or see [loan origination](https://www.loantabs.com/features/loan-origination/) for how products and schedules fit into the application workflow.

:::callout
Software applies your rules; it does not choose them. Check interest caps, disclosure rules and licensing where you operate before you configure a product.
:::

#### Common mistakes when calculating loan interest

- **Mixing units.** Using an annual rate with a monthly period, or the reverse, makes interest twelve times too high or too low.
- **Quoting only the flat rate.** A "10% flat" loan is not a "10% loan." Show the total repaid.
- **Ignoring fees.** A cheap rate with a large upfront fee can cost more than a higher rate with none.
- **Rounding schedules inconsistently.** Round each installment the same way and put any difference in the final payment.
- **Forgetting partial and late payments.** Decide in advance how a short payment is allocated. See [repayment allocation order](https://www.loantabs.com/resources/loan-repayment-allocation-order/).
- **Not testing with a real example.** Run a sample loan through your method and check it against a spreadsheet before you offer it.

#### FAQ

##### What is the formula for loan interest?

For simple interest it is Interest = Principal × Rate × Time. For a reducing balance loan with equal installments, the payment is P × r ÷ (1 − (1 + r)^−n), where r is the rate per period and n the number of periods. Interest each period is the rate times the current balance.

##### What is the difference between flat rate and reducing balance interest?

Flat rate charges interest on the original principal for the whole term. Reducing balance charges interest only on the amount still owed. For the same headline rate, flat rate costs the borrower considerably more. Our guide to [flat rate vs reducing balance interest](https://www.loantabs.com/resources/flat-rate-vs-reducing-balance-interest/) compares them in detail.

##### How do I calculate monthly interest on a loan?

Divide the annual rate by 12 to get the monthly rate, then multiply it by the outstanding balance. On a 12% annual loan with a balance of 1,000, monthly interest is 1,000 × 1% = 10.

##### Is compound interest used on loans?

Yes, where interest accrues and is added to the balance, such as a loan repaid in one lump sum. Most installment loans use reducing balance or flat rate rather than compounding into the schedule.

##### Which interest method does LoanTabs support?

LoanTabs supports flat, declining balance, reducing balance (equal installments or equal principal), interest-only and compound interest, set per loan product.

:::cta
Set the interest method per loan product and see the schedule before you save.
:::

### How to choose loan management software: a buyer's guide for lenders

URL: https://www.loantabs.com/resources/how-to-choose-loan-management-software/
Published: 2026-09-30

:::answer
To choose loan management software, write down your loan products and volumes, separate must-have features from nice-to-haves, shortlist two or three products, trial each with a real sample of your loans, check the reports and calculations by hand, and confirm pricing, support and how you can export your data if you leave.
:::

Choosing loan software is a decision you live with for years. Your loan book, your staff habits and your reports all end up depending on it. The good news is that a careful, small process beats a long feature comparison. This guide sets out that process for small lenders, MFIs and SACCOs.

If you are new to the category, read [what loan management software is](https://www.loantabs.com/resources/what-is-loan-management-software/) first.

#### Step 1: describe your lending in one page

Before you look at any software, write down:

- **Your loan products.** For each: typical amount, term, interest method, fees, repayment frequency.
- **Volumes.** Active loans, new loans a month, number of borrowers.
- **People.** Staff who will use the system and what each does. Do you need approvals?
- **Branches.** How many, and do they need separate data?
- **Reports you must produce.** Portfolio at risk, aging, income, whatever your board, funder or regulator asks for.
- **Money channels.** Cash, bank transfer, mobile money: how do repayments arrive?
- **Existing data.** Where is your loan book today, and how clean is it?

This page is your requirements document. It also protects you from being sold features you do not need.

#### Step 2: separate must-haves from nice-to-haves

Use the [loan management software features checklist](https://www.loantabs.com/resources/loan-management-software-features-checklist/) and mark each feature as **must have**, **should have** or **nice to have**. Be strict. Typical must-haves for a small lender are correct schedules for your interest methods, receipts, a borrower record with documents, basic accounting and a portfolio-at-risk report. A borrower portal, for example, is often a nice-to-have.

#### Step 3: shortlist two or three products

Search, ask other lenders in your market, and read the vendors' own pages critically. Look for:

- **Clear statements of what the product does and does not do.** Vendors who say what is missing are usually easier to trust.
- **Published pricing** and a free trial.
- **Evidence of use in your kind of lending**, such as an MFI, SACCO or money lender. Be wary of logos and numbers you cannot verify.
- **Documentation you can read before you buy.**

Avoid long shortlists. Three products tested properly beat ten skimmed.

#### Step 4: run a demo with your own scenarios

A vendor demo shows the product at its best. Take control with a script. Ask the vendor, or do it yourself in a trial, to:

1. **Create a loan product** matching one of yours exactly (interest method, fees, frequency).
2. **Create a loan** and show the schedule before saving.
3. **Record an on-time, a late and a partial payment**, and show how each is allocated and what the balance becomes.
4. **Show an overdue loan** in the delinquency and aging reports.
5. **Print a receipt and a statement.**
6. **Show the approval flow** for a loan over a given amount.
7. **Show the ledger entries** produced by a disbursement and a payment.
8. **Export a report** to CSV or PDF.
9. **Show what a cashier can and cannot do** compared with an admin.
10. **Import a small spreadsheet** of loans.

Watch how long each takes, and whether anything requires "we'll set that up for you."

#### Step 5: test the arithmetic

Take three real loans, one on each of your main interest methods, and calculate their schedules yourself. Compare interest, principal and balance with the software's. If the software's numbers disagree with a careful hand calculation and cannot explain why, that is a serious red flag. See [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/) for the formulas.

#### Step 6: ask the right questions

**About the product**
- What does it not do?
- What is on the roadmap, and what is actually available today? Ask for dates on anything you need.
- How are calculations tested?

**About your data**
- Where is it hosted, and who can access it?
- How are customers separated from each other?
- Can I export all my data, in a usable format, if I leave?
- What happens to my data when I cancel?

**About money**
- What is included in each plan, and what costs extra?
- What happens to the price at renewal?
- Is there a setup or migration fee?

**About support**
- How do I reach a person, and how fast do they reply?
- Is there written documentation for staff?
- Who helps with migration?

See [loan management software pricing](https://www.loantabs.com/resources/loan-management-software-pricing/) for the cost questions in detail.

#### Step 7: check the exit

The best time to plan how to leave is before you join. Confirm that you can export borrowers, loans, payments and the ledger, and that the export is complete enough to rebuild your book elsewhere. A vendor that makes leaving hard is telling you something.

#### Red flags

- **Unverifiable claims.** Rankings, user counts or customer logos with no names and no way to check them.
- **No free trial** and no way to see the real product.
- **Prices that appear only after a sales call**, with no ranges.
- **Vague answers about security** or hosting.
- **Features that only exist "on request"**, with no description of scope.
- **A demo that avoids your scenarios.**
- **Pressure to sign before a trial.**
- **No documentation.**

#### Green flags

- The vendor tells you what the product does not do.
- Clear pricing and a real trial.
- Documentation you can read.
- The demo handles your awkward scenarios.
- Exports are easy and complete.

#### Common mistakes

- **Choosing on price alone.** The cheapest product that cannot handle your loan products costs more.
- **Choosing on features alone.** A long feature list with weak calculations is a liability.
- **Skipping data clean-up.** Import problems are usually data problems. See [migrate loans from Excel](https://www.loantabs.com/resources/migrate-loans-from-excel/).
- **Not involving the people who will use it.** Cashiers and officers notice what managers miss.
- **Forgetting compliance.** Software helps you follow procedures; it does not decide what the law requires.

#### How LoanTabs fits this process

LoanTabs is built for small lenders, MFIs and SACCOs. You can run steps 4 and 5 yourself in a 30-day free trial with no credit card, with a free Excel starter template to import a sample of your loans. Prices are published on the [pricing page](https://www.loantabs.com/pricing/), and the [documentation](https://www.loantabs.com/docs/) is public. Some things are deliberately outside the product today: borrowers cannot apply for loans themselves (that portal is planned, not available), penalties are applied by staff rather than automatically, and repayments are recorded manually rather than through payment-channel integrations. Better to know before you start.

#### FAQ

##### How long does it take to choose loan software?

A focused process takes one to three weeks: a day for requirements, a few days to shortlist, and a week or so of trials.

##### What should I look for in loan management software for a small business?

Correct schedules for your loan products, an easy small-team workflow, receipts and statements, basic accounting, portfolio reports and clear pricing. See [loan software for small business](https://www.loantabs.com/loan-management-software-for-small-business/).

##### Should I choose cloud-based or installed software?

Cloud-based suits most small lenders: no servers to maintain and every branch shares one record. Installed software suits lenders who cannot rely on internet access. See [cloud-based loan management software](https://www.loantabs.com/resources/cloud-based-loan-management-software/).

##### How do I compare prices?

Compare the cost of the plan that fits your needs over a year, including setup and renewal, and compare it with the time you will save.

:::cta
Run the demo script yourself: start a free trial and import a sample of your loans.
:::

### How to reduce loan defaults: 12 practical steps for small lenders

URL: https://www.loantabs.com/resources/how-to-reduce-loan-defaults/
Published: 2026-09-30

:::answer
To reduce loan defaults, lend only what a borrower can repay, verify who they are and how they earn, set schedules that match their cash flow, follow up the first missed payment immediately, monitor arrears by officer and branch, and keep honest records. Most defaults are predictable, and most are cheaper to prevent than to recover.
:::

Every lender loses some loans. The question is how many, and whether the losses were preventable. In small-lender portfolios, a large share of defaults trace back to a few causes that can be managed: loans too big for the borrower, weak checks at the start, schedules that do not fit how borrowers earn, and follow-up that comes too late. This guide sets out twelve practical steps.

#### 1. Lend what the borrower can repay

Affordability is the single biggest factor. Estimate the borrower's income and existing obligations, and set the loan so the installment is a manageable share of what they can spare. If you cannot verify income, be more conservative. A smaller loan repaid is better than a larger one written off.

#### 2. Know who you are lending to

Verify identity, address and contact details, and keep copies. Confirm how the borrower earns, and where possible speak to a referee or visit the business. See our [KYC checklist for small lenders](https://www.loantabs.com/resources/kyc-checklist-for-small-lenders/). Many fraud and "disappearing borrower" losses come from skipping this.

#### 3. Start small and build a repayment history

New borrowers are riskier. Cap the first loan and increase limits as they repay. A ladder of larger loans for proven borrowers rewards good behaviour and limits losses on the unknown.

#### 4. Match the schedule to cash flow

A monthly installment for someone paid weekly, or a weekly installment for someone paid at harvest, invites missed payments. Choose repayment frequency and timing to match when the borrower actually has money. Configurable loan products make this practical: define frequencies that suit each type of borrower. See [loan products in LoanTabs](https://www.loantabs.com/features/loan-origination/).

#### 5. Use security and guarantors sensibly

Collateral and guarantors do not prevent defaults, but they improve recovery and often improve behaviour. Record what you hold, its value and where it is, and make sure guarantors understand their commitment. See [collateral vs guarantor](https://www.loantabs.com/resources/collateral-vs-guarantor/).

#### 6. Get the paperwork right

A clear agreement that states the amount, interest, fees, schedule, penalties, what counts as default and what happens next protects both sides. Borrowers who understand the terms are less likely to dispute them. See [what to include in a loan agreement](https://www.loantabs.com/resources/loan-agreement-what-to-include/).

#### 7. Follow up the first missed payment immediately

The first missed payment is the strongest signal of later default. Contact the borrower the day after, find out what happened, and agree a firm date. Most early arrears are fixable with a timely conversation; the same loan six weeks later may not be.

#### 8. Make paying easy

Borrowers pay more reliably when paying is convenient. Accept payment through the channels they use, give receipts, and remind them before the due date if your process allows. If you record mobile money payments, see [mobile money loan repayments](https://www.loantabs.com/resources/mobile-money-loan-repayments/) for a reconciliation routine.

#### 9. Apply consequences consistently

Penalties and follow-up only work if they are predictable. If some borrowers are chased and others are not, everyone learns that paying is optional. Write your policy, apply it evenly, and record every exception and who approved it.

#### 10. Monitor arrears daily and risk weekly

Use a delinquency worklist every day and review portfolio at risk and aging every week. Split by officer, branch and product, so you can see where problems concentrate. If one officer's PAR is twice everyone else's, that is a coaching conversation, or an underwriting review. See [what is portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/) and [days past due and loan aging](https://www.loantabs.com/resources/days-past-due-and-loan-aging/).

#### 11. Align officers' incentives with repayment

If officers are rewarded for volume alone, they will approve weak loans. Tie part of their reward to portfolio quality: repayment rate or PAR of the loans they originated. Keep the balance realistic; too much pressure encourages unfair collection practices.

#### 12. Be honest in reporting and provisioning

Restructuring, rolling over and quiet write-offs can hide the true state of the book until it is too late. Report PAR truthfully, count restructured loans, and set aside provisions in line with aging. See [loan loss provisioning and write-offs](https://www.loantabs.com/resources/loan-loss-provisioning-and-write-offs/). A lender who sees the problem early can fix it.

#### A short checklist

- Affordability checked and documented
- Identity and referees verified
- First loan capped for new borrowers
- Schedule matched to income
- Security and guarantors recorded
- Agreement clear and signed
- First missed payment followed up in a day
- Payment channels convenient, receipts given
- Consequences applied consistently
- Daily worklist and weekly PAR review
- Officer incentives balanced
- Provisions and restructuring reported honestly

#### What software can and cannot do

Software cannot judge a borrower's character, but it can make the disciplined parts of this list routine. It can show you the overdue loans every morning, print collection sheets, calculate PAR and aging, apply your repayment order consistently, and keep every payment, note and document with the loan. LoanTabs provides a delinquency worklist, a daily collection sheet, PAR, aging, collections performance, an Officer Scorecard, a provisions matrix and loan classification. It does not send automatic reminders or run collection campaigns; your team makes the calls. See [collections and arrears reports](https://www.loantabs.com/features/delinquency-and-collections-reports/) and the full [collections guide](https://www.loantabs.com/resources/loan-collections-and-arrears-guide/).

#### FAQ

##### What is the main cause of loan defaults?

Lending more than the borrower can repay, followed by weak verification and delayed follow-up.

##### What is an acceptable default rate for a small lender?

It depends on the market and the product. Compare PAR and write-offs against your own history, your funders' covenants and your pricing. See the guide to [portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/).

##### Do guarantors reduce defaults?

They can improve repayment behaviour and recovery, but only if they are real, reachable and understand their obligation.

##### Should I restructure late loans?

Sometimes, for a good borrower in a temporary difficulty. Track restructured loans separately so that they do not hide arrears.

##### How quickly should I follow up a late payment?

The next day. Early contact is the cheapest and most effective step in collections.

:::cta
Review overdue loans every morning with a delinquency worklist and a daily collection sheet.
:::

### How to start and run a money lending business: a practical guide

URL: https://www.loantabs.com/resources/how-to-start-a-money-lending-business/
Published: 2026-09-30

:::answer
To start a money lending business, confirm the licensing rules where you operate, secure capital, design a few clear loan products, price them to cover costs and losses, set approval and collections policies, keep proper records from day one, and use loan software so schedules, receipts and reports are right. Most failures come from weak controls, not lack of borrowers.
:::

Lending looks simple: money goes out, more comes back. In practice, the lenders that last are the ones that treat it as a business with rules: who they lend to, on what terms, how they decide, how they collect and how they keep score. This guide walks through the essentials of setting up and running a small money lending business. It is general guidance, not legal or financial advice, and the rules differ enormously by country, so take professional advice for your location.

#### Step 1: understand the rules where you operate

Money lending is regulated in most places, and operating without the right permissions can end a business, and worse. Before you lend a single loan, find out:

- **Whether you need a licence or registration**, from which authority, and what it costs.
- **Who may lend.** Some places restrict lending to licensed companies; others distinguish between money lenders, microfinance institutions, deposit-taking institutions and cooperatives.
- **Interest and fee limits.** Some jurisdictions cap rates or restrict fees.
- **Disclosure duties.** Many require you to state the total cost of credit before the borrower signs.
- **Collection rules.** What you may and may not do to recover a debt.
- **Record-keeping and reporting.** What you must keep, for how long, and what you must report.
- **Data protection.** You will hold personal and financial data about borrowers.
- **Anti-money-laundering rules.** Identification and reporting duties for financial businesses.

Speak to a lawyer or the regulator. Then write your rules into your policies and your loan agreements.

#### Step 2: decide who you will lend to

The clearest lenders are specific. Decide:

- **Your borrowers.** Salaried employees, small traders, farmers, small businesses, members of a group?
- **Your geography.** Where can your team visit and collect?
- **Your loan sizes.** Small, frequent loans behave differently from larger, slower ones.
- **What you will not lend for.**

Narrow beats broad. It is easier to assess, price and collect on a type of borrower you understand. If you are weighing lending your own money against funding loans through a platform, read [peer-to-peer vs private lending](https://www.loantabs.com/resources/peer-to-peer-vs-private-lending/).

#### Step 3: secure your capital

Lending needs money to lend, and money to survive the losses. Sources include your own capital, investors, partners, bank facilities or, for regulated institutions, deposits. Think about:

- **How much capital** covers your lending plan plus at least several months of costs.
- **The cost of that capital**, since your interest rate has to beat it plus your costs and losses.
- **Concentration.** Do not lend most of your capital to a handful of borrowers.
- **Reserves.** Keep a cushion for delays and losses.

#### Step 4: design a few loan products

A loan product is a standard set of terms: amount range, term, interest method and rate, fees, repayment frequency, security required. Start with two or three clear products rather than custom deals for every borrower. For each, define:

- **Amount limits** (minimum, default, maximum).
- **Term limits.**
- **Interest method and rate.** Flat, reducing balance, interest-only or compound. See [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/).
- **Fees**, and how they are collected: deducted, added or separate. See [deductible vs capitalized fees](https://www.loantabs.com/resources/loan-fees-deductible-vs-capitalized/).
- **Repayment frequency**, matched to how borrowers earn.
- **Penalties for late payment**, within local law.
- **Security or guarantor requirements.**
- **Who can approve** loans on this product.

#### Step 5: price to cover costs and losses

Your interest and fees have to pay for four things: the cost of your capital, your operating costs (staff, rent, software, transport), expected credit losses and a margin. A rough check:

**Required yield ≈ cost of funds + operating cost ratio + expected loss ratio + margin**

If your capital costs 10%, operating costs are 12% of the portfolio, you expect to lose 4%, and you want a 6% margin, you need a yield of about 32% on the average loan book. Higher-cost, higher-risk lending needs higher yields, and that is where consumer-protection rules and ethics matter: price fairly, and disclose the total cost.

#### Step 6: set your credit policy

Write down how you decide. Include:

- **Eligibility.** Minimum age, residence, income, business history.
- **Documents required.** See [KYC checklist for small lenders](https://www.loantabs.com/resources/kyc-checklist-for-small-lenders/).
- **Affordability rules.** For example, installments must not exceed a set share of verified income.
- **Security.** When you require collateral or a guarantor. See [collateral vs guarantor](https://www.loantabs.com/resources/collateral-vs-guarantor/).
- **Limits.** First-loan caps, maximum exposure per borrower, concentration limits.
- **Who approves what.** See [loan approval workflow and roles](https://www.loantabs.com/resources/loan-approval-workflow-and-roles/).

#### Step 7: put paperwork in place

A clear loan agreement protects you and the borrower. It should state the parties, amount, interest, fees, schedule, penalties, security, what counts as default and remedies. See [what to include in a loan agreement](https://www.loantabs.com/resources/loan-agreement-what-to-include/), and have it reviewed by a lawyer in your jurisdiction. Give the borrower a copy, an amortization schedule and receipts for every payment.

#### Step 8: build your collections routine

Plan collections before the first loan goes out. Decide who follows up, when, and how. Track days past due and portfolio at risk from day one. See the [loan collections and arrears guide](https://www.loantabs.com/resources/loan-collections-and-arrears-guide/) and [how to reduce loan defaults](https://www.loantabs.com/resources/how-to-reduce-loan-defaults/).

#### Step 9: keep proper books

Keep separate records for the business: loans, payments, interest income, fees, expenses, provisions. Loans should post to a ledger, so your accounts and your loan book agree. Engage an accountant, close each month and reconcile. Even a very small lender benefits from double-entry accounting.

#### Step 10: choose the right tools

A spreadsheet is fine for the first handful of loans. As soon as you have several staff, regular payments and reporting duties, use loan management software. It should calculate schedules for your interest method, record payments with receipts, control approvals by role, keep borrower and collateral records, post to accounts and report on arrears. See [what is loan management software](https://www.loantabs.com/resources/what-is-loan-management-software/) and [how to choose loan management software](https://www.loantabs.com/resources/how-to-choose-loan-management-software/).

#### Step 11: staff and controls

Even a two-person business needs controls. Separate duties so that no one person can create, approve, disburse and record the same loan. Limit who can edit or reverse payments. Reconcile cash daily. Review exceptions weekly. Use roles in your software to enforce these rules, not just trust.

#### Step 12: measure what matters

Track a small set of numbers every week:

- **Portfolio outstanding and number of active loans.**
- **Disbursements and repayments.**
- **Portfolio at risk (PAR30 and PAR90).** See [what is portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/).
- **Collection rate.**
- **Yield and margin.**
- **Write-offs and recoveries.**

If you cannot see these quickly, you are managing by guesswork.

#### A sample loan product

To make Step 4 concrete, here is one illustrative product for a lender serving small traders. The numbers are examples, not recommendations:

| Setting | Example |
| --- | --- |
| Name | Trader working-capital loan |
| Amount | Minimum 100, default 500, maximum 2,000 (first loan capped at 500) |
| Term | 3 to 12 months |
| Interest | 3% a month on the reducing balance |
| Fee | 2% processing fee, deducted at disbursement |
| Repayment | Weekly or monthly installments |
| Penalty | Fixed amount per late installment, applied by the manager |
| Security | Guarantor required above 500; collateral above 1,500 |
| Approval | Loan officer recommends; branch manager approves; cashier disburses |

Write each product down like this, then check the maths on a sample loan, including the effect of the fee on the borrower's real cost. See [deductible vs capitalized fees](https://www.loantabs.com/resources/loan-fees-deductible-vs-capitalized/).

#### Costs to budget for

New lenders often underestimate the running costs. Include:

- **Capital costs**, meaning interest or a return to whoever provided the money.
- **Staff**: salaries, transport, training and commissions.
- **Premises and equipment**, even a small office and a secure place for cash and documents.
- **Legal and licensing**: registration, licence fees, lawyer's review of agreements.
- **Software and communications**: loan management software, phones, data.
- **Accounting and audit.**
- **Insurance**, including cash-in-transit and the collateral you hold.
- **Credit losses**, which are a cost even when you do everything right.
- **Marketing** and community engagement.

Compare the total with the income your first-year portfolio can produce. Many new lenders find that break-even needs a larger book than they planned, which argues for starting lean.

#### Liquidity and capital management

Lending is a cash business. If you lend out everything you have, one delayed repayment can stop new lending or force you to borrow at a bad moment. Keep an operating reserve, track cash daily, and forecast repayments due against disbursements planned. Avoid funding long loans with short-term borrowing, and do not let a single borrower or sector take too large a share of the book. If you borrow to lend, check your funder's covenants: many limit portfolio at risk and require regular reports.

#### Your first 90 days

1. **Days 1 to 30: foundations.** Confirm licensing, open separate bank and mobile money accounts, write your credit, approval and collections policies, draft agreements with a lawyer, and choose your software.
2. **Days 31 to 60: pilot.** Set up products in the software, train the team, and make a small number of loans to borrowers you can verify well. Check every schedule by hand, issue receipts, and run the first daily reconciliation.
3. **Days 61 to 90: review.** Review arrears, portfolio at risk, cash position and every exception. Adjust policies, then increase volume gradually.

Growth is not the danger; growth ahead of your controls is.

#### Common mistakes

- **Starting without checking licensing.**
- **Lending too much to too few borrowers.**
- **Skipping verification** because the borrower seems trustworthy.
- **No written agreement** or vague terms.
- **Mixing personal and business money.**
- **No provisions**, overstating profit.
- **One person doing everything**, with no controls.
- **Hiding arrears** by repeatedly restructuring.
- **Underpricing risk** to win borrowers.
- **Growing faster than your controls.**

#### A simple launch checklist

- Licensing and legal position confirmed
- Target borrowers and loan sizes defined
- Capital secured, reserves set
- Two or three loan products designed
- Pricing checked against costs and losses
- Credit, approval and collections policies written
- Loan agreement reviewed by a lawyer
- Accounts and bank accounts separated
- Loan management software chosen and tested
- Staff roles and controls set
- Weekly reporting routine defined

#### How LoanTabs supports a new lender

LoanTabs is loan management software built for small lenders and MFIs. You define loan products with seven interest methods and fees, take applications online, route approvals by role, record payments with PDF receipts, and get reports and a double-entry ledger from the same data. The Pro plan is a single seat, and an admin can create and disburse a loan in one step, which suits a solo lender. Start on the 30-day free trial. See [loan software for small business](https://www.loantabs.com/loan-management-software-for-small-business/) and [loan software for money lenders](https://www.loantabs.com/solutions/money-lenders/).

#### FAQ

##### Do I need a licence to lend money?

In most places, yes, or at least a registration. The rules vary by country and by type of lender, so check with the regulator or a lawyer before you start.

##### How much money do I need to start a money lending business?

Enough to lend at the scale you plan, cover several months of costs and absorb early losses. Start small, prove your process and grow.

##### What interest rate should I charge?

One that covers your cost of capital, operating costs and expected losses, with a margin, within any legal limits and with full disclosure. See the pricing step above.

##### What is the biggest risk in money lending?

Credit losses caused by weak underwriting and slow collections, and, for many new lenders, weak controls over staff and cash.

##### Can I run a lending business on spreadsheets?

For a few loans, yes. As soon as volume, staff or reporting grow, use loan management software.

:::cta
Set up your first loan products and run your lending on LoanTabs: 30-day free trial.
:::

### KYC checklist for small lenders: what to collect and verify

URL: https://www.loantabs.com/resources/kyc-checklist-for-small-lenders/
Published: 2026-09-30

:::answer
KYC (know your customer) is the process of verifying who a borrower is and whether they can repay before you lend. A small lender's checklist covers identity, address, contact details, income or business, references, purpose of the loan, existing debts, and any guarantor or collateral, with copies kept on the loan file.
:::

Knowing your customer serves two goals. The first is protecting yourself: fraud, impersonation and borrowers who vanish are among the most avoidable losses in lending. The second is meeting legal duties: in many countries, lenders must verify identity and keep records under anti-money-laundering and consumer-protection rules. This checklist is a practical starting point for a small lender. It is not legal advice, and the requirements vary by country, so confirm what applies to you with the regulator or a lawyer.

#### The KYC checklist

##### 1. Identity

- **Full legal name** exactly as on the identity document.
- **Government-issued photo ID**: national ID, passport or driver's licence. Check that it is valid and not expired.
- **ID number**, recorded on the borrower's file.
- **Date of birth**, and confirmation that the borrower is of legal age to contract.
- **A photo of the borrower**, if your process allows.
- **A copy of the ID** kept on file.

##### 2. Address and contact

- **Residential address**, with a way to verify it: a utility bill, tenancy agreement, local leader's letter or a visit.
- **Phone number**, verified by calling it.
- **Alternative contacts**, such as a family member or workplace.

##### 3. Income or business

- **For employed borrowers:** employer's name and contact, payslips or a letter, bank or mobile-money statements.
- **For self-employed borrowers:** the nature and location of the business, how long it has operated, stock, receipts, statements, and a visit if practical.
- **Other income and household obligations.**

##### 4. Existing debts

- **Other loans and obligations** the borrower has, and their payments.
- **Credit reference** or bureau report, where available.
- **History with you**, if a returning borrower.

##### 5. Purpose of the loan

- **What the money is for.** A clear productive purpose (stock, equipment, school fees) is easier to assess than a vague one.
- **Consistency**: does the purpose fit the amount and the borrower's circumstances?

##### 6. References

- **At least one or two references** who know the borrower, contacted and recorded.
- **Character and standing**: is the borrower known locally, and what do others say?

##### 7. Security and guarantors

- **Guarantor's identity documents**, contact details and signed guarantee.
- **Collateral**: proof of ownership, valuation and details.

See [collateral vs guarantor](https://www.loantabs.com/resources/collateral-vs-guarantor/).

##### 8. Consent and disclosure

- **Written consent** to process personal data and to contact references and guarantors.
- **Confirmation** that the borrower has received and understood the terms.
- **Signed application** and agreement.

##### 9. Risk screening

- **Sanctions and watch-list checks**, where required.
- **Politically exposed persons (PEP)**, if your regulator requires it.
- **Red flags**: inconsistent documents, pressure to hurry, refusal to give contact details, third parties handling everything.

#### Verifying, not just collecting

Collecting documents is not KYC. Verification means checking that they are genuine and consistent:

- **Compare the ID photo and details** with the person in front of you.
- **Check names, dates and numbers match** across documents.
- **Call the phone numbers** and references.
- **Visit** the home or business for larger or riskier loans.
- **Look for signs of tampering**, such as different fonts or poor copies.
- **Check against your own records** for duplicate borrowers.

#### Risk-based KYC

Not every loan needs the same depth. Apply more checks as risk rises: larger loans, first-time borrowers, unusual patterns, borrowers referred by third parties. A common approach is simplified KYC for small first loans and enhanced KYC above a set threshold. Write the levels into your policy.

#### Records to keep

Keep KYC records for the period the law requires, often several years after the loan closes. Store them securely, limit who can see them, and be able to retrieve them quickly for an auditor or regulator. Personal data is protected by law in many countries, so keep only what you need and delete it when the time comes.

#### Anti-money-laundering basics

Lenders can be used to launder money, for example through unusually large repayments in cash, third-party payments or early repayments that do not fit the borrower's profile. Where AML rules apply, you typically must identify customers, monitor for unusual transactions and report suspicious activity to the authority. Ask your regulator what applies to you.

#### Common mistakes

- **Collecting documents without checking them.**
- **Accepting expired or unclear IDs.**
- **No proof of address or income.**
- **Skipping references** because the borrower seems trustworthy.
- **Different standards for different officers.** Use one checklist.
- **Not keeping copies**, or keeping them in a drawer nobody can find.
- **Ignoring duplicate borrowers**, who may be borrowing repeatedly from you.
- **Keeping personal data insecurely.**

#### Digital KYC and online applications

Some lenders now verify identity remotely, with photo capture, liveness checks and database lookups. Doing this well needs a specialist verification service and careful attention to data protection. Whether you verify in person or online, the principle is the same: confirm that the person is who they say they are and can repay. See [online loan applications guide](https://www.loantabs.com/resources/online-loan-applications-guide/).

#### KYC records in LoanTabs

LoanTabs holds the borrower's **ID number**, contact details, custom fields you define, and **document attachments** (up to 10 files of up to 10 MB each per record, or links), plus guarantors and collateral, all linked to the loan. There is a **credit score** field on the borrower record. LoanTabs does **not** verify identity automatically or connect to a KYC provider or credit bureau: you carry out the checks and record the outcome and the evidence. See [borrower management](https://www.loantabs.com/features/borrower-management/).

#### FAQ

##### What does KYC mean?

Know your customer: verifying a borrower's identity, and whether they can repay, before you lend.

##### What documents do I need to verify a borrower?

At minimum a government photo ID, proof of address, and evidence of income or business. Requirements vary by country and loan size.

##### Is KYC legally required for small lenders?

In many countries, yes, under anti-money-laundering and consumer-protection rules. Check with your regulator or a lawyer.

##### How long should I keep KYC records?

For the period the law requires, often several years after the loan is closed. Confirm locally.

##### Can software do KYC for me?

Some services verify identity automatically. LoanTabs stores the details and documents but does not perform verification itself.

:::cta
Keep every borrower's ID, documents, guarantors and collateral together with the loan.
:::

### What to include in a loan agreement: a checklist for small lenders

URL: https://www.loantabs.com/resources/loan-agreement-what-to-include/
Published: 2026-09-30

:::answer
A loan agreement should name the parties, state the amount, interest, fees and repayment schedule, explain how payments are applied, describe penalties, security and guarantees, define default and the lender's remedies, and be signed by all parties. Have it reviewed by a lawyer in your jurisdiction; this checklist is not legal advice.
:::

A clear written loan agreement is the best protection a lender has. It removes arguments about what was agreed, gives you something to point to when a payment is late, and is the basis for any legal action if things go wrong. Weak or missing agreements are one of the most common reasons small lenders cannot recover money they are owed.

This guide sets out the clauses a small lender's agreement should cover. Laws on consumer credit, interest, fees, formalities and enforcement differ by country, so treat this as a checklist of topics, and have your final document reviewed by a lawyer where you operate.

#### The essential clauses

##### 1. Parties

- Full legal names, addresses and identification numbers of the lender and borrower.
- Names and details of any **guarantor**.
- The date and place of signing.

##### 2. The loan amount and how it is paid out

- The **principal amount**.
- The **date and method of disbursement**.
- Whether any **fees are deducted** from the amount paid. If so, state the net amount the borrower receives. See [deductible vs capitalized fees](https://www.loantabs.com/resources/loan-fees-deductible-vs-capitalized/).

##### 3. Purpose

- What the loan is for, where relevant. It is useful for productive-use loans and some regulated lending.

##### 4. Interest

- The **rate** and **how it is calculated**: flat, reducing balance, interest-only or compound. Say per what period: per month, per year. See [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/).
- The **day-count convention** if you calculate daily.
- Whether interest continues **after the loan matures**, and at what rate.
- Where required by law, an **annual percentage rate** or total cost of credit. See [effective interest rate on flat rate loans](https://www.loantabs.com/resources/effective-interest-rate-on-flat-rate-loans/).

##### 5. Fees and charges

- List every fee: processing, insurance, admin, and how each is collected.
- State that there are **no other charges** except those listed, if that is true.

##### 6. Repayment terms

- The **number, amount and dates** of installments, or a schedule attached as an annex.
- The **total amount repayable.**
- **Where and how** payments are made, and that a receipt will be given.
- What happens if a due date falls on a **non-working day**.
- Whether **early repayment** is allowed, and any charge or rebate.

##### 7. How payments are applied

- The order in which a payment is allocated: for example penalties, fees, interest, then principal. See [repayment allocation order](https://www.loantabs.com/resources/loan-repayment-allocation-order/).
- What happens to **partial payments**.

##### 8. Late payment and penalties

- What counts as **late**, and any grace period.
- The **penalty** amount or rate, and when it starts. Some jurisdictions cap or forbid certain penalties.
- Any cap on total penalties.

##### 9. Security

- A description of the **collateral**: type, identifying details, value.
- The borrower's **promise not to sell or pledge** it elsewhere.
- Insurance requirements.
- The lender's **right to hold documents** or take possession, subject to law.
- What happens to the collateral on full repayment.

See [collateral vs guarantor](https://www.loantabs.com/resources/collateral-vs-guarantor/).

##### 10. Guarantee

- The guarantor's **identity and signed promise**, stating what they guarantee and any limit.
- Confirmation that they understand and have had a chance to seek advice.

##### 11. Default and remedies

- **Events of default**: missed payments beyond a set number of days, false information, sale of collateral, insolvency, death, leaving the country or business.
- The lender's **remedies**: demand for the full balance, enforcing security, claiming from the guarantor, reporting to credit bureaus where lawful.
- **Notice requirements** before action.
- Recovery **costs**, where allowed by law.

##### 12. Borrower's representations

- The borrower confirms the information given is **true and complete**, and that they can make the payments.
- They agree to **tell you** of changes in address, employment or contact details.

##### 13. Data and consent

- **Consent** to collect, use and share the borrower's data, for example with credit bureaus, guarantors and auditors, in line with data protection law.
- Explanation of how their **data is used and protected**.

##### 14. Changes and notices

- How the agreement can be **varied** (in writing, signed by both).
- How **notices** are given and deemed received.

##### 15. Governing law and disputes

- The **law** that applies.
- How **disputes** are resolved: courts, arbitration or mediation.

##### 16. Signatures

- **Signatures** of the borrower, the lender and any guarantor, with dates.
- **Witnesses** if required locally.
- A **copy** given to the borrower.

#### Plain language matters

An agreement the borrower cannot understand is harder to enforce and invites disputes. Use short sentences and ordinary words. Explain key terms, such as interest and default, in plain language, and consider summarizing the main terms on the first page: amount, total to repay, schedule, penalties and security. Where borrowers have limited literacy, read the agreement aloud in their language and record that you did so.

#### Attach the schedule

A repayment schedule as an annex removes doubt about what is due and when. For reducing balance loans, show the interest and principal split for each installment. See [loan amortization schedule explained](https://www.loantabs.com/resources/loan-amortization-schedule-explained/).

#### Record and keep it

Keep the signed original safe, scan a copy and attach it to the loan record along with the KYC documents. See [KYC checklist for small lenders](https://www.loantabs.com/resources/kyc-checklist-for-small-lenders/). If a dispute arises, the signed agreement and the payment history are your evidence.

#### Common mistakes

- **Verbal agreements** or only a message.
- **Missing or unclear interest calculation**, or no mention of how fees are taken.
- **No schedule.**
- **No clause on partial payments.**
- **Penalties that are unclear or unlawful.**
- **A guarantee the guarantor did not understand.**
- **Copying a template that does not fit local law.**
- **Not giving the borrower a copy.**
- **No signature, date or witness.**

#### Loan agreements and LoanTabs

LoanTabs keeps the loan's **terms, schedule, payments, statements and attachments** together, and you can attach the signed agreement, ID documents and security documents to the borrower and loan record. It does not generate legal agreements or provide e-signature, so prepare the agreement yourself or with your lawyer and attach the signed copy. Printable **loan statements** and **PDF receipts** support the same record. See [loan servicing](https://www.loantabs.com/features/loan-servicing/) and [borrower management](https://www.loantabs.com/features/borrower-management/).

#### FAQ

##### What should a loan agreement include?

Parties, amount, interest and how it is calculated, fees, repayment schedule, how payments are applied, penalties, security and guarantees, default and remedies, governing law and signatures.

##### Do I need a lawyer to write a loan agreement?

It is strongly advisable to have a lawyer in your country review the document, because legal requirements differ and mistakes can make terms unenforceable.

##### Is a verbal loan agreement valid?

In some places verbal agreements can be binding, but they are very hard to prove. Always use a written, signed agreement.

##### Should a loan agreement include a repayment schedule?

Yes. Attaching the schedule removes doubt about the amounts and dates.

##### Can LoanTabs generate my loan agreement?

No. LoanTabs stores the signed agreement and documents with the loan, but it does not draft agreements or provide e-signature.

:::cta
Keep the signed agreement, schedule, receipts and statements together in one loan record.
:::

### Loan amortization schedule explained: how to build and read one

URL: https://www.loantabs.com/resources/loan-amortization-schedule-explained/
Published: 2026-09-30

:::answer
A loan amortization schedule is a table of every scheduled payment on a loan, showing how much of each payment is interest, how much repays principal, and the balance left afterwards. Early payments are mostly interest; later payments are mostly principal, and the balance reaches zero with the final payment.
:::

An amortization schedule is the loan's timetable. It tells the borrower what to pay and when, tells the lender how much interest they will earn, and gives both a reference for what is owed at any point. If you lend on reducing balance terms, the schedule is the heart of the loan record.

This guide shows how to build one, how to read it, and what changes when payments are early, late or partial.

#### What is in an amortization schedule?

Each row is one installment, with these columns:

- **Payment number and date.** When the installment is due.
- **Payment.** The total due. On equal-installment loans this is the same each period.
- **Interest.** The rate for the period times the balance at the start of the period.
- **Principal.** Payment minus interest: the part that reduces the debt.
- **Balance.** What is still owed after the payment.

Some schedules add fees, penalties or running totals of interest and principal paid.

#### How to build an amortization schedule, step by step

We will use a loan of **1,000 at 12% a year, repaid monthly over 12 months**, with equal installments.

1. **Find the periodic rate.** 12% a year ÷ 12 months = 1% a month, or 0.01.
2. **Calculate the payment.** Payment = P × r ÷ (1 − (1 + r)^−n) = 1,000 × 0.01 ÷ (1 − 1.01^−12) = **88.85**.
3. **Row one.** Interest = 1,000 × 1% = 10.00. Principal = 88.85 − 10.00 = 78.85. New balance = 1,000 − 78.85 = 921.15.
4. **Row two.** Interest = 921.15 × 1% = 9.21. Principal = 88.85 − 9.21 = 79.64. New balance = 841.51.
5. **Repeat** until the balance is zero. Round each interest figure to the currency's smallest unit, and let the last payment absorb any rounding difference.

#### The full schedule

| Payment | Payment amount | Interest | Principal | Balance |
| --- | --- | --- | --- | --- |
| 1 | 88.85 | 10.00 | 78.85 | 921.15 |
| 2 | 88.85 | 9.21 | 79.64 | 841.51 |
| 3 | 88.85 | 8.42 | 80.43 | 761.08 |
| 4 | 88.85 | 7.61 | 81.24 | 679.84 |
| 5 | 88.85 | 6.80 | 82.05 | 597.79 |
| 6 | 88.85 | 5.98 | 82.87 | 514.92 |
| 7 | 88.85 | 5.15 | 83.70 | 431.22 |
| 8 | 88.85 | 4.31 | 84.54 | 346.68 |
| 9 | 88.85 | 3.47 | 85.38 | 261.30 |
| 10 | 88.85 | 2.61 | 86.24 | 175.07 |
| 11 | 88.85 | 1.75 | 87.10 | 87.97 |
| 12 | 88.85 | 0.88 | 87.97 | 0.00 |

Total interest across the 12 payments is **66.19**. Total repaid is 1,066.19.

#### How to read the schedule

- **Interest falls every month.** It is charged on a shrinking balance. Month 1 carries 10.00 of interest; month 12 carries 0.88.
- **Principal rises every month.** The payment is constant, so as interest falls, more of the payment repays the debt.
- **The balance falls slowly at first.** After six payments (half the term) the borrower has repaid only about 485 of principal, not 500, because early payments are interest-heavy.
- **This matters for early settlement.** A borrower who wants to settle after month 3 owes the outstanding balance of 761.08 plus any accrued interest and fees, not the sum of the remaining payments.

#### Equal installments vs equal principal

Some lenders divide the principal evenly and charge interest on the falling balance. This is the **equal principal** method. For the same loan, principal is 83.33 every month, and the payments start higher and decline:

| Payment | Interest | Principal | Payment amount | Balance |
| --- | --- | --- | --- | --- |
| 1 | 10.00 | 83.33 | 93.33 | 916.67 |
| 2 | 9.17 | 83.33 | 92.50 | 833.33 |
| 3 | 8.33 | 83.33 | 91.67 | 750.00 |
| ... | ... | ... | ... | ... |
| 12 | 0.83 | 83.33 | 84.17 | 0.00 |

Total interest is 65.00, slightly lower than equal installments because the debt is repaid faster. The first payment is 4.48 higher than with equal installments, which some borrowers find harder to manage.

#### What changes with early, late or partial payments

A schedule is a plan. Real payments deviate from it, and the loan record has to keep up.

- **Early payment.** If a borrower pays extra, the extra amount reduces principal, so later interest falls. Decide whether the borrower keeps the same payment (and finishes sooner) or the payment shrinks.
- **Late payment.** The installment is overdue, and penalties may apply. The schedule still shows the original due date; days past due are counted from it.
- **Partial payment.** A payment smaller than the installment must be allocated across interest, fees, penalties and principal. The order matters. See [repayment allocation order](https://www.loantabs.com/resources/loan-repayment-allocation-order/).
- **Interest after maturity.** If the loan runs past its final due date, interest may continue on the outstanding balance under the agreement.

Good software recalculates the balance after each of these events, and shows a running record of what was applied.

#### Why lenders should generate schedules in software

A spreadsheet can build a schedule, but every change, an early payment or a rate adjustment, means editing formulas by hand, and one mistake propagates. Software that generates the schedule from the loan product has three advantages. It applies the same rules to every loan. It updates automatically as payments are recorded. And it produces a consistent statement the borrower can be given.

To build a schedule for your own numbers, use the free [loan amortization schedule calculator](https://www.loantabs.com/tools/loan-amortization-schedule-calculator/), which lets you download the result as CSV.

#### Amortization schedules in LoanTabs

In LoanTabs each loan product defines the interest method and repayment frequency, and the schedule follows from them. A live schedule preview appears as you create a loan, so the installments are visible before you save. After disbursement, recording a payment allocates it in the order set on the product, and the loan statement, which can be printed as a PDF, shows the schedule and the payment history together. See [loan servicing](https://www.loantabs.com/features/loan-servicing/) for how repayments are recorded, and [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/) for the formulas behind each method.

#### FAQ

##### What does amortization mean?

Amortization means paying off a debt gradually through scheduled payments, each of which covers interest and reduces the principal.

##### How do I calculate an amortization schedule in Excel?

Use the PMT function for the payment, then for each row calculate interest as the previous balance times the periodic rate, principal as payment minus interest, and the new balance as the previous balance minus principal.

##### Why is most of my early payment interest?

Interest is charged on the balance, and the balance is highest at the start. As you repay principal, the balance falls, so interest falls and more of each payment goes to principal.

##### Do all loans have an amortization schedule?

Reducing balance loans with equal installments do. Flat rate loans have a schedule too, but the interest portion is the same each period. Interest-only loans have no principal repayment until the end.

:::cta
See the amortization schedule for any loan before you save it, then print the statement as a PDF.
:::

### Loan approval workflow and roles: how to control who can lend

URL: https://www.loantabs.com/resources/loan-approval-workflow-and-roles/
Published: 2026-09-30

:::answer
A loan approval workflow is the set of steps and roles a loan must pass before money is released: application review, credit assessment, approval by someone with authority, and disbursement. Good workflows separate duties, set approval limits by amount, and log every decision, so no single person can lend money alone.
:::

Most serious losses in small lenders are not caused by borrowers. They come from loans that should never have been approved, loans approved by someone who should not have approved them, and loans that were altered afterwards. A loan approval workflow prevents that by deciding, in advance, who does what and who must sign off.

#### What is a loan approval workflow?

It is the path a loan follows from application to disbursement, with defined roles at each stage. A simple version:

1. **Application captured** by a loan officer.
2. **Verification** of the borrower's identity, documents and details.
3. **Assessment** of affordability, history, security and guarantors.
4. **Recommendation** by the officer or a reviewer.
5. **Approval** by the person or committee with authority for that amount.
6. **Disbursement** by someone other than the approver, ideally a cashier or accountant.
7. **Recording** in the loan system, with the decision logged.

#### Why it matters

- **Fraud prevention.** When one person can create, approve and pay out a loan, fraud is easy to commit and hard to detect.
- **Consistency.** The same rules apply to every borrower.
- **Risk control.** Larger loans get more scrutiny.
- **Accountability.** You can see who approved what and when.
- **Audit and funder confidence.** Regulators and funders expect documented controls.

#### The roles

Roles differ by institution, but the common ones are:

| Role | Typical responsibility |
| --- | --- |
| Loan officer | Captures applications, verifies details, recommends |
| Branch manager | Approves within a limit, oversees the branch |
| Credit committee | Approves larger or riskier loans |
| Cashier | Handles cash in and out, records payments |
| Accountant | Reviews postings, reconciles, closes periods |
| Collections officer | Follows up overdue loans |
| Risk analyst | Reviews portfolio risk and exceptions |
| Auditor | Reviews records independently, with read access |
| Administrator | Manages configuration, users and products |

A very small lender may have one person in several roles. The principle still applies: find someone to review what you do, or use software controls to record it.

#### Separation of duties

The core control is that no one person completes every critical step for the same loan. In particular, keep these apart:

- **Originating** a loan and **approving** it.
- **Approving** a loan and **disbursing** the money.
- **Recording payments** and **reconciling cash**.
- **Editing records** and **reviewing exceptions**.

If your team is too small for full separation, add compensating controls: a second person reviews a daily list of new loans, or the owner approves all loans above a threshold and reviews exceptions weekly.

#### Approval limits

Set authority by loan size, and sometimes by risk. For example:

| Loan amount | Who approves |
| --- | --- |
| Up to 500 | Branch manager |
| 501 to 2,000 | Branch manager and a second reviewer |
| Above 2,000 | Credit committee |
| Any loan with an exception (policy breach, unsecured above limit) | Credit committee |

Choose limits that reflect your risk appetite, and review them as the business grows.

#### Handling exceptions

Sometimes you need to lend outside the standard policy: a larger amount, less security, a different term. Allow it, but require a higher approval level and record the reason. Track how often exceptions occur, since a rising rate is a warning about credit quality.

#### Small teams: the fast path

A one- or two-person lender should not build a bureaucracy. What you need instead is a **fast path**: the owner or manager can create and disburse a loan quickly, and the record still shows who did it and when. Controls then come from regular review of the log, not from waiting for sign-offs.

#### Recording the decision

Every approval should record: who approved, when, on what basis, and any conditions. Keep the supporting documents with the loan. If a loan is later disputed or goes bad, this is the evidence you will rely on.

#### A worked example

A loan officer, Grace, records a 1,500 loan for a market trader. She attaches the ID, references and the trader's stock list. She sends it to the branch manager, David, who checks the documents and the affordability, and approves it, because 1,500 is within his limit. A cashier, Peter, disburses the funds and records the disbursement. Grace cannot approve, David cannot disburse and Peter cannot create loans. The log shows all three steps.

#### Common mistakes

- **One person doing everything** with no review.
- **Approval limits set once and never revisited.**
- **Approving over chat or in person**, with no record.
- **Letting approvers edit loans after approval** without a trail.
- **Approving without seeing the documents.**
- **Vague roles**, so nobody is accountable.

#### Approval workflow in LoanTabs

LoanTabs sets **loan approval rules per branch** by role. Branch managers and admins are always required to approve; you can require additional roles, such as credit committee, for that branch. There are **11 staff roles** in all: admin, branch manager, loan officer, credit committee, accountant, cashier, auditor, collections officer, risk analyst, IT support and viewer. Loans can be saved as drafts while information is gathered, and every decision is logged as a loan event. For small teams, an admin or branch manager can create and disburse a loan in one step. New borrowers can also be approved in bulk. The Exceptions and audit report highlights late, edited or deleted payments and write-offs. LoanTabs' approval rules cover loans and pending borrowers; they do not cover every kind of transaction. See [multi-branch and staff](https://www.loantabs.com/features/multi-branch-and-staff/) and [loan origination](https://www.loantabs.com/features/loan-origination/).

#### FAQ

##### What is a loan approval process?

The set of steps and authorizations a loan must go through before disbursement: verification, assessment, approval by the right person and payment.

##### Who should approve a loan?

Someone with authority for that amount who did not originate or disburse it. Larger or riskier loans should go to a higher authority such as a committee.

##### What is separation of duties?

Ensuring that no single person controls every critical step of a loan, so that fraud or error requires more than one person.

##### Can a small lender use an approval workflow?

Yes. Use a lightweight version: a second reviewer for larger loans, a log of decisions, and regular review by the owner.

##### Does LoanTabs support multi-level approvals?

Yes. Branch managers and admins always approve, and you can add other roles per branch.

:::cta
Set approval rules by branch and role, with every decision logged.
:::

### Loan collections and arrears management: a practical guide for lenders

URL: https://www.loantabs.com/resources/loan-collections-and-arrears-guide/
Published: 2026-09-30

:::answer
Loan collections is the work of getting overdue repayments paid; arrears are the overdue amounts. Good collections starts before the due date, measures lateness in days past due, tracks portfolio at risk, follows a consistent escalation routine and sets aside provisions for losses. The earlier you act on a late loan, the more likely you are to recover it.
:::

Every lender has late payers. What separates a healthy loan book from a failing one is not whether loans go late, but how quickly the lender notices, how consistently they respond, and how honestly they measure the damage. This guide covers the whole cycle: definitions, the metrics that matter, a daily routine, sensible policies and the reports that support them. It is written for small lenders, MFIs and SACCOs, and the ideas apply to any portfolio.

#### Key terms

- **Arrears (or delinquency).** The amount that is overdue: installments that should have been paid and have not been.
- **Days past due (DPD).** How many days the oldest unpaid installment has been overdue. See [days past due and loan aging](https://www.loantabs.com/resources/days-past-due-and-loan-aging/).
- **Portfolio at risk (PAR).** The outstanding balance of loans that are overdue beyond a threshold, as a share of the whole portfolio. See [portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/).
- **Default.** A loan that is seriously overdue or in breach, defined in your policy or the agreement.
- **Provisioning.** Setting aside money to cover expected losses. See [loan loss provisioning](https://www.loantabs.com/resources/loan-loss-provisioning-and-write-offs/).
- **Write-off.** Removing a loan from the balance sheet as unlikely to be collected. Writing off does not forgive the debt.
- **Recovery.** Money collected after a loan has been written off.

#### Why collections matters so much

Small lenders often run on thin margins, so a few late loans matter. If a portfolio earns an average of 20% a year and 10% of it is lost, half the year's earnings vanish. Late loans also get harder to collect the older they get: a borrower who is a week late usually has a fixable problem, while one who is six months late has often stopped intending to pay. And arrears spread: if borrowers see others paying late with no consequence, more will follow.

#### The collections cycle

Think of collections as stages, each with its own response.

##### Before the due date: prevention

Most arrears can be prevented. Confirm the borrower understands the installment amount and date at disbursement. Send a reminder shortly before each due date if your process allows. Make paying easy through the channels borrowers actually use. Keep an eye on the first payment: borrowers who miss the first installment are the most likely to default.

##### Early arrears: 1 to 30 days

The borrower is late, often for a fixable reason: forgot, short of cash until payday, a mix-up over where to pay. Contact them promptly and politely, find out why, agree when they will pay, and record the promise. This stage recovers most late loans at low cost.

##### Serious arrears: 31 to 90 days

A pattern is forming. Escalate: a visit or a call from a senior officer, a meeting to agree a realistic plan, a conversation with guarantors if the agreement allows, and a review of whether restructuring makes sense. Apply penalties consistently in line with your policy.

##### Late arrears: 91 days and over

The loan is at high risk of loss. Decide firmly between recovery routes: enforcement against collateral, calling on a guarantor, a formal demand, legal action, or a final restructure. Increase provisions. Your regulator or funder may have specific rules on classification from this point.

##### Write-off and recovery

When a loan is judged uncollectable, write it off in line with policy and approvals, but keep pursuing recovery if it is worthwhile. Record recoveries separately.

#### The metrics to track

| Metric | What it tells you | How to calculate |
| --- | --- | --- |
| Days past due | How late an individual loan is | Days since the oldest unpaid installment was due |
| Aging report | How arrears are distributed by age | Outstanding balances grouped into buckets: current, 1-30, 31-60, 61-90, 91-180, 181+ |
| PAR (30, 60, 90) | How much of the portfolio is at risk | Outstanding balance of loans more than N days overdue ÷ total outstanding portfolio |
| Collection rate | How much of what was due was collected | Amount collected ÷ amount due in a period |
| Roll rate | How loans move between buckets | Share of loans in one bucket that move to a worse one |
| Write-off ratio | Actual losses | Amount written off in a period ÷ average portfolio |
| Provision coverage | How well losses are covered | Provisions ÷ PAR or ÷ portfolio |

A worked example. A portfolio has 500,000 outstanding:

| Bucket | Outstanding balance |
| --- | --- |
| Current | 430,000 |
| 1-30 days | 30,000 |
| 31-60 days | 20,000 |
| 61-90 days | 8,000 |
| 91-180 days | 7,000 |
| 181+ days | 5,000 |

Then **PAR30** = (20,000 + 8,000 + 7,000 + 5,000) ÷ 500,000 = **8.0%**, and **PAR90** = (7,000 + 5,000) ÷ 500,000 = **2.4%**. PAR30 is a broad early-warning measure; PAR90 is a measure of serious trouble. Watch both, and the trend more than the level.

#### A daily collections routine

1. **Start with the worklist.** List every overdue loan, newest arrears first (they are easiest to fix), and assign each to an officer.
2. **Give officers their sheets.** A daily collection sheet lists who is due or overdue, by officer, with contact details.
3. **Make contact and record the outcome.** Note what was said, the promised date and any agreed plan.
4. **Record payments the same day**, and give a receipt.
5. **Apply penalties** where your policy says to, consistently.
6. **Escalate** loans that pass a set number of days or break a promise.
7. **Review at the end of the day**: what was collected, what promises are due tomorrow.

Every week, review PAR, the aging report and collections by officer and branch. Every month, review provisions and write-offs.

#### Policies to write down

- **Grace period.** How many days after the due date before a loan counts as late, and before penalties apply.
- **Penalty rules.** Fixed amount or percentage, when they start, and any cap. Check local law.
- **Contact rules.** Who contacts the borrower, how often, and what is off limits. Treat borrowers with respect; harassment is both wrong and, in many places, illegal.
- **Escalation steps and timings.**
- **Restructuring rules.** When a loan can be rescheduled, by whom, and how it is classified afterwards.
- **Collateral and guarantor enforcement.** Who decides, and what documentation is needed. See [collateral vs guarantor](https://www.loantabs.com/resources/collateral-vs-guarantor/).
- **Write-off approval.** Who can write off, up to what amount, with what evidence.

#### Restructuring: a tool, not a habit

Rescheduling a loan can save a good borrower through a bad month. Used constantly, it hides arrears: a portfolio full of restructured loans can look healthy on paper while it is not. Track restructured loans separately, and make sure the aging report reflects the real repayment behaviour, not only the new dates.

#### Collateral and guarantors

If a loan is secured, you need to know exactly what you hold and where it is, and whether you can enforce it. A guarantor only helps if you can find them and they understand what they signed. Record both against the loan from the start, with values, identification numbers, documents and status. See [collateral vs guarantor](https://www.loantabs.com/resources/collateral-vs-guarantor/) and [borrower management](https://www.loantabs.com/features/borrower-management/).

#### Setting aside for losses

Even with good collections, some loans will not be repaid. Provisioning is the discipline of recognizing that in advance. A common approach applies a rising percentage to each aging bucket. As an illustration only, using the portfolio above with example rates of 1% current, 5% for 1-30 days, 25% for 31-60, 50% for 61-90, 75% for 91-180 and 100% for 181+, provisions would be 4,300 + 1,500 + 5,000 + 4,000 + 5,250 + 5,000 = **25,050**, or about 5% of the portfolio. Your regulator, funder or policy sets the real rates. See [loan loss provisioning and write-offs](https://www.loantabs.com/resources/loan-loss-provisioning-and-write-offs/).

#### An example escalation timeline

Every lender's steps differ, but a written timeline keeps follow-up consistent. This is an illustration for a monthly-installment loan, not a rule:

| Days past due | Action | Owner |
| --- | --- | --- |
| Before due date | Reminder if your process allows; confirm the amount and date | Loan officer |
| 1 to 3 | Call the borrower, find out why, agree a payment date, record the promise | Loan officer |
| 4 to 14 | Second contact; visit if the borrower cannot be reached; apply a penalty if your policy says so | Loan officer, branch manager informed |
| 15 to 30 | Meeting to agree a realistic plan; contact guarantor if the agreement allows | Branch manager |
| 31 to 60 | Formal written notice; review collateral and guarantor position; consider restructuring | Branch manager and credit committee |
| 61 to 90 | Escalate to senior management; prepare for enforcement or a final restructure; increase provisions | Credit committee |
| 91 and over | Decide: enforce, restructure once with strict terms, or prepare write-off; report as serious arrears | Credit committee, management |

For weekly loans, compress the days. The principle is that the response gets firmer and more senior as the loan ages, and that every step is recorded.

#### Collections for different kinds of lender

- **Independent money lenders** usually collect personally, so the risk is inconsistency and memory. A daily list and a written record of each promise fix most of it.
- **Microfinance institutions** collect through field officers and, often, group meetings. The critical controls are receipts, cash counting by two people and prompt banking. See [how to run a group lending program](https://www.loantabs.com/resources/how-to-run-a-group-lending-program/).
- **SACCOs** have members, savings and shares as leverage: a member's savings can be set off against a defaulted loan where the bylaws allow, and other members act as guarantors. See [SACCO vs MFI](https://www.loantabs.com/resources/sacco-vs-mfi-difference/).
- **Salary and employer-linked lenders** can arrange deductions at source, which reduces arrears but shifts risk to employment changes. Watch for borrowers who change jobs.

#### Tone and ethics in collections

How you collect matters, both morally and commercially. Borrowers who are treated with respect are likelier to pay and to borrow again, and the law in many places prohibits harassment, threats, public shaming and contacting third parties inappropriately. Give staff a written code: what may be said, at what hours, to whom, and what is off limits. Train them to listen first, since a large share of late payment has a cause you can address. Record any complaint and review patterns by officer.

#### Common mistakes

- **Waiting.** Every week of delay lowers the chance of recovery.
- **Inconsistency.** Letting some borrowers off and chasing others invites arguments and more arrears.
- **Measuring lateness from the wrong date.** Count days from the due date of the oldest unpaid installment.
- **Hiding arrears through repeated restructuring.**
- **Poor records of promises and conversations.**
- **Ignoring the first missed payment.**
- **Treating provisions as optional.** Overstating profit today makes tomorrow worse.
- **No measurement by officer or branch**, so nobody knows where the problem is.

#### The reports you need

A useful system gives you: a **delinquency worklist** of overdue loans, a **daily collection sheet** by officer, **portfolio at risk**, an **aging report**, **collections performance**, a **provisioning** schedule with loan classification, and roll-rate or vintage analysis to see trends. Read more about [how to reduce loan defaults](https://www.loantabs.com/resources/how-to-reduce-loan-defaults/) and the metrics in detail in the linked guides.

#### Collections in LoanTabs

LoanTabs includes these as built-in reports among its 28: a delinquency worklist, a daily collection sheet (a printable PDF with a section per officer and borrower phone numbers), collections performance and the Officer Scorecard, portfolio at risk with thresholds set in your reporting policy, aging in the buckets above, a configurable provisions matrix with loan classification (standard, watch, substandard, doubtful, loss), and vintage and roll-rate analysis. Penalties are applied by staff, using amounts suggested from penalty types you define, and payments are allocated by a configurable order. What LoanTabs does not do is run automated reminders or dialers: the reports show who is late, and your team follows up. See the [collections and arrears reports](https://www.loantabs.com/features/delinquency-and-collections-reports/) page and [loan servicing](https://www.loantabs.com/features/loan-servicing/).

#### FAQ

##### What is loan collections?

The process of getting overdue loan repayments paid, from early reminders through escalation, enforcement and, if necessary, write-off.

##### What are arrears?

Amounts that are overdue: installments that should have been paid by now but have not.

##### How do I calculate portfolio at risk?

Add up the outstanding balances of loans that are more than a given number of days overdue, and divide by the total outstanding portfolio. PAR30 uses 30 days, PAR90 uses 90.

##### When should I write off a loan?

When your policy says it is unlikely to be collected, commonly at 180 days or more overdue, with the right approvals. Keep pursuing recovery where it is worthwhile.

##### Does LoanTabs send automatic payment reminders?

No. It provides reports and worklists showing who is overdue; reminders and follow-up are done by your staff.

:::cta
See overdue loans, PAR and aging in one place: 30-day free trial, no credit card.
:::

### Loan fees explained: deductible, capitalized and separate fees

URL: https://www.loantabs.com/resources/loan-fees-deductible-vs-capitalized/
Published: 2026-09-30

:::answer
A loan fee can be deducted from the loan at disbursement, added to the loan balance so it is repaid with interest, or charged separately in cash. All three raise the borrower's real cost, but by different amounts and in different ways, so each must be recorded and disclosed differently.
:::

Interest is only part of what a loan costs. Lenders also charge processing fees, application fees, insurance and admin charges. How a fee is collected changes what the borrower receives, what they owe, and what the lender's books show. This guide explains the three treatments and works an example through each.

The example: **a 1,000 loan at 12% a year on reducing balance, repaid over 12 months, with a 5% fee (50)**.

#### Option 1: a deductible fee (taken from the loan)

A deductible fee is subtracted from the amount paid out.

- Loan amount: 1,000
- Fee deducted: 50
- **Cash the borrower receives: 950**
- Repayments: still based on 1,000, at 12%, so 88.85 a month for 12 months (1,066.19 in total)

The borrower has 950 in hand but owes 1,000, so they pay 116.19 more than they received: 66.19 of interest plus the 50 fee. Measured against the 950 they actually received, the annualized cost is about **21.9%**, not 12%. Deductible fees are cheap for the lender to collect (there is no separate payment to chase) but they cut the borrower's usable cash, which is worth explaining before disbursement.

#### Option 2: a capitalized fee (added to the loan)

A capitalized fee is added to the loan balance, so the borrower repays it, with interest, over the term.

- Loan amount: 1,000
- Fee capitalized: 50 → **loan balance: 1,050**
- **Cash the borrower receives: 1,000**
- Repayments: 1,050 at 12% over 12 months = **93.29** a month, 1,119.49 in total

The borrower gets the full 1,000 but repays 119.49 more than they received: 66.19 of interest on 1,000, 3.30 of extra interest on the 50 fee, and the fee itself. The annualized cost against the 1,000 received is about **21.4%**. Capitalizing keeps the borrower's cash whole, which borrowers prefer, but they pay interest on the fee.

#### Option 3: a separate (non-deductible) fee

A separate fee is neither deducted nor added to the balance. The borrower pays it as its own charge, often at the start, in cash.

- Loan amount: 1,000, disbursed in full
- Fee: 50, paid separately
- Repayments: 88.85 a month, 1,066.19 in total

The borrower's total cost is again 116.19 over the loan (interest plus fee), but they hand over 50 in cash on day one. The effective cost is the same as the deductible case, about 21.9%, because the effect on cash flow is the same.

#### Comparing the three

| | Deductible | Capitalized | Separate |
| --- | --- | --- | --- |
| Cash the borrower receives | 950 | 1,000 | 1,000 (pays 50 separately) |
| Loan balance | 1,000 | 1,050 | 1,000 |
| Monthly repayment | 88.85 | 93.29 | 88.85 |
| Total repaid on the loan | 1,066.19 | 1,119.49 | 1,066.19 (+50 fee) |
| Total cost of credit | 116.19 | 119.49 | 116.19 |
| Annualized cost | about 21.9% | about 21.4% | about 21.9% |

Whichever treatment you choose, the borrower is paying roughly double the interest-only rate. That is an honest reflection of a 5% fee on a 12-month loan, and it is the number to show them.

#### How each fee should be recorded

- **A deductible fee** is income recognized at disbursement. The loan is recorded at the full amount and cash out is the net amount.
- **A capitalized fee** increases the loan receivable. Recognizing the fee as income at once or spreading it over the loan depends on your accounting policy and local standards.
- **A separate fee** is income when received, and the loan is unaffected.

Consult your accountant about the correct treatment for your reporting framework. What matters operationally is that the fee type is set on the loan product, applied consistently to every loan, and visible on the loan record.

#### Fees as a percentage or a fixed amount

Fees are commonly set as a fixed amount (a flat 25 per loan) or a percentage of principal, of interest or of both. Percentage fees scale with loan size; fixed fees hit small loans hardest. On a 100 loan, a 25 fixed fee is a 25% charge before any interest. If you serve very small borrowers, look at the fee as a share of the loan.

#### Disclosing fees fairly

Borrowers cannot compare offers unless fees are visible. Good practice, and in many countries a legal requirement:

1. List every fee before the borrower signs.
2. State how it is collected: deducted, added or separate.
3. Show the cash the borrower receives and the total they will repay.
4. Where required, give an effective rate that includes fees. See [effective interest rate on flat rate loans](https://www.loantabs.com/resources/effective-interest-rate-on-flat-rate-loans/) for the method.

#### Loan fees in LoanTabs

LoanTabs supports three fee categories on loan products: **Non-deductible** fees, shown as a separate line; **Deductible** fees, taken from the disbursement; and **Capitalized** fees, added to the principal. Each fee can be a fixed amount or a percentage of the principal, the interest or both. Because fees belong to the loan product, every loan on that product applies them the same way, and the live schedule preview shows the resulting installments. Fees also take part in the repayment allocation order, which decides what a partial payment clears first. See [loan origination](https://www.loantabs.com/features/loan-origination/) and [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/).

#### FAQ

##### What is a deductible fee on a loan?

A deductible fee is taken from the loan amount at disbursement, so the borrower receives less than the amount they owe.

##### What does it mean to capitalize a fee?

To capitalize a fee is to add it to the loan principal so that it is repaid over the term, with interest.

##### Which is cheaper for the borrower, deducted or capitalized?

The total cost is similar. Deducting the fee reduces the cash received; capitalizing it increases the balance and the interest. In the example above the annualized costs were about 21.9% and 21.4%.

##### Should fees be included in the interest rate?

They should be included in the effective rate or APR disclosure, and always shown in currency.

:::cta
Set fixed or percentage fees per loan product, deducted, capitalized or separate.
:::

### Loan loss provisioning and write-offs: how small lenders account for bad loans

URL: https://www.loantabs.com/resources/loan-loss-provisioning-and-write-offs/
Published: 2026-09-30

:::answer
Loan loss provisioning means setting aside money now for loans you expect not to recover. Lenders usually apply a rising percentage to each aging bucket, so older arrears carry higher provisions. A write-off removes a loan that is judged uncollectable from the books, and recoveries after that are recorded as income.
:::

Some loans will never be repaid. Honest accounting recognizes that before the loss becomes certain, so profit is not overstated and the balance sheet shows what the loan book is really worth. That is what provisioning does. This guide explains the mechanics for small lenders in plain terms. It is not accounting or legal advice: your reporting framework, regulator and auditor decide the required method and rates.

#### Key terms

- **Provision (allowance for loan losses).** An estimate of expected losses on the portfolio, recorded as an expense and held against the loans.
- **Loan classification.** Grouping loans by risk, commonly standard, watch, substandard, doubtful and loss.
- **Write-off.** Removing a loan from the balance sheet because it is unlikely to be collected. The borrower's obligation may continue and collection may go on.
- **Recovery.** Money collected on a loan after it was written off.
- **Net loan book.** Gross loans minus provisions.

#### Why provision at all?

If you wait until a loan is written off to recognize the loss, your accounts overstate profit and the loan book for months or years. Provisioning spreads the recognition to match the risk: as a loan ages, you expect to lose more of it, so you provide more. It also encourages discipline, because rising arrears visibly cost profit.

#### Aging-based provisioning

The simplest and most common method applies a percentage to the outstanding balance in each aging bucket. Buckets are the days-past-due groups in your [aging report](https://www.loantabs.com/resources/days-past-due-and-loan-aging/).

An illustrative matrix (your regulator or policy sets the real rates):

| Bucket | Balance | Example rate | Provision |
| --- | --- | --- | --- |
| Current | 430,000 | 1% | 4,300 |
| 1-30 days | 30,000 | 5% | 1,500 |
| 31-60 days | 20,000 | 25% | 5,000 |
| 61-90 days | 8,000 | 50% | 4,000 |
| 91-180 days | 7,000 | 75% | 5,250 |
| 181+ days | 5,000 | 100% | 5,000 |
| **Total** | **500,000** | | **25,050** |

Total provisions of 25,050 are about 5% of the portfolio. The provision **expense** for the period is the change in the required provision: if last month's provision was 22,000, this month's expense is 3,050.

#### Loan classification

Many regulators require loans to be classified by risk, each class with a minimum provision:

| Class | Typical meaning |
| --- | --- |
| Standard (pass) | Repaying as agreed |
| Watch (special mention) | Early arrears, needs attention |
| Substandard | Serious arrears, some loss possible |
| Doubtful | Loss likely, recovery uncertain |
| Loss | Considered uncollectable |

The days-past-due ranges that map to each class, and the percentages, are set by the local regulator or your funder. If none applies, set them in your policy and apply them consistently.

#### Specific and general provisions

- **Specific provisions** are set against identified problem loans, based on their age and circumstances.
- **General provisions** cover the rest of the portfolio, including current loans, for losses that exist but are not yet visible. That is the 1% on the current bucket above.

#### Newer approaches: expected credit loss

Larger institutions using modern accounting standards estimate expected credit losses (ECL) using probabilities of default and loss severity. It is more sophisticated than an aging matrix, but for most small lenders a transparent aging-based method, applied consistently and reviewed, is a reasonable start. Ask your accountant which approach your reporting requires.

#### Writing off a loan

A write-off is a formal decision, not a quiet deletion. A sound policy specifies:

1. **When a loan becomes eligible**, for example, at 180 days or more past due with no realistic prospect of recovery.
2. **Who can approve**, by amount.
3. **What evidence is needed**: collection history, collateral status, guarantor position.
4. **What happens accounting-wise**: the loan is removed against the provision already held. If the provision was adequate, there is no further profit-and-loss hit.
5. **What happens next**: write-off does not release the borrower. Keep trying to recover if it is worthwhile.

#### Recoveries

Money received on a written-off loan is a **recovery**. Record it separately from ordinary repayments, usually as income in the period received. Tracking recoveries shows whether write-offs were premature and how much collection effort is worth.

#### Restructured loans

Rescheduling a loan can reset its days past due, which lowers provisions if you are not careful. Sound practice keeps restructured loans visible, applies a minimum classification for a period after restructuring, and does not release provisions until the borrower has shown a repayment record. Ask your regulator or auditor about the rules that apply.

#### Reporting to management and funders

Useful reports include: provisions by bucket, provision coverage (provisions ÷ PAR), write-offs and recoveries in the period, the write-off ratio (write-offs ÷ average portfolio) and a loan classification summary. See [what is portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/). Together they show whether the book is stable and whether provisions are keeping up.

#### Common mistakes

- **Not provisioning at all**, overstating profit.
- **Provisioning only when a loan is written off.**
- **Using rates that are too low** to look profitable.
- **Letting restructuring wipe out provisions.**
- **Writing off without approval or evidence.**
- **Not recording recoveries.**
- **Changing the method without disclosure**, which makes trends meaningless.

#### Provisioning and write-offs in LoanTabs

LoanTabs includes a **provisions** report driven by a configurable provisioning matrix, a **loan classification** (standard, watch, substandard, doubtful, loss), an **aging** report, portfolio at risk, a **write-off and recovery** report and a **loan book and classification** report, plus a double-entry ledger with period close. Loans can be closed or written off, with the change recorded as a loan event. The rates and rules you apply are your own; LoanTabs applies them consistently. See [collections and arrears reports](https://www.loantabs.com/features/delinquency-and-collections-reports/) and [accounting](https://www.loantabs.com/features/accounting/).

#### FAQ

##### What is loan loss provisioning?

Setting aside money in advance for the loans you expect not to recover, recorded as an expense against the loan book.

##### What is the difference between a provision and a write-off?

A provision is an estimate held against the portfolio. A write-off removes a specific loan from the books, usually against a provision already made.

##### When should I write off a loan?

When your policy says it is unlikely to be collected, often after 180 days or more overdue and with approval. Regulations may set the timing.

##### What percentage should I provision?

Use the rates your regulator or funder requires. Where none apply, set rates by aging bucket based on your own loss history and review them regularly. Ask your accountant.

##### Can a written-off loan still be collected?

Yes. Writing off is an accounting decision; the borrower's obligation continues unless it is formally forgiven, and any recovery is recorded as income.

:::cta
Get provisions, classification and write-off reports from your own loan book.
:::

### Loan management software features: the complete checklist for lenders

URL: https://www.loantabs.com/resources/loan-management-software-features-checklist/
Published: 2026-09-30

:::answer
The loan management software features that matter most are configurable loan products, accurate repayment schedules, an approval workflow with roles, complete borrower files, payments with receipts and statements, built-in accounting, portfolio reports, import and export, strong access control, and real support. Use this checklist to test any product.
:::

Feature lists on vendor websites all look the same. This checklist is different: for each feature it says **why it matters** and gives you **one question to ask** so you can tell a real capability from a bullet point. Score each product Yes, Partly or No, and weight the features by how much your business depends on them.

Start with [what loan management software is](https://www.loantabs.com/resources/what-is-loan-management-software/) if you want the background first.

#### Loan products and calculations

##### 1. Configurable loan products

**Why it matters:** Different loans need different terms. If interest method, fees and repayment frequency are fixed for the whole system, you will end up forcing loans into the wrong shape.
**Ask:** "Can I define a separate product for each kind of loan, with its own interest method, fees, term limits and frequency?"

##### 2. The interest methods you actually use

**Why it matters:** The method changes what a borrower pays. See [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/).
**Ask:** "Which methods are supported: flat, reducing balance (equal installments and equal principal), interest-only, compound?"

##### 3. Fees and penalties

**Why it matters:** Fees change the real cost and your accounting. See [deductible vs capitalized fees](https://www.loantabs.com/resources/loan-fees-deductible-vs-capitalized/).
**Ask:** "Can fees be deducted at disbursement, added to the loan or charged separately, as a fixed amount or a percentage? Are penalties automatic or applied by staff?"

##### 4. Repayment schedule preview

**Why it matters:** The borrower should see the installments before signing, and you should catch a wrong setting before the loan exists.
**Ask:** "Do I see the full schedule while creating the loan, before saving?"

#### Workflow and control

##### 5. Approval workflow by role

**Why it matters:** A loan that can be disbursed by anyone is a fraud and error risk. See [loan approval workflow and roles](https://www.loantabs.com/resources/loan-approval-workflow-and-roles/).
**Ask:** "Can I set which roles must approve a loan, per branch, and is every decision logged?"

##### 6. Staff roles and permissions

**Why it matters:** Cashiers, officers, accountants and auditors need different access.
**Ask:** "How many roles are there, and what can each do? Can I restrict who sees what?"

##### 7. Multiple branches

**Why it matters:** A second branch is where spreadsheets fail. Data must be separated but visible to head office.
**Ask:** "How does the system separate branch data, and who can see across branches?"

##### 8. Audit trail

**Why it matters:** When something is disputed you need to know who did what and when.
**Ask:** "Is there a record of edits, reversals and deletions, and a report that surfaces them?"

#### Borrowers and documents

##### 9. Complete borrower records

**Why it matters:** The borrower file is the risk file. It should hold contact details, ID, documents and loan history.
**Ask:** "Can I record individuals and businesses, attach documents, and add my own fields?"

##### 10. Guarantors and collateral

**Why it matters:** Security and guarantees only help if you can find and enforce them. See [collateral vs guarantor](https://www.loantabs.com/resources/collateral-vs-guarantor/).
**Ask:** "Can I record guarantors and collateral against a loan, with values, identifying numbers and status?"

#### Money in and out

##### 11. Payments and receipts

**Why it matters:** Every payment needs a record and a receipt, or you will argue about it later.
**Ask:** "Can I record a payment, attach evidence and print a receipt?"

##### 12. Repayment allocation order

**Why it matters:** Partial payments must be applied consistently. See [repayment allocation order](https://www.loantabs.com/resources/loan-repayment-allocation-order/).
**Ask:** "Can I control whether payments clear penalties, fees, interest or principal first?"

##### 13. Statements

**Why it matters:** A statement is the borrower-facing proof of what was paid and what remains.
**Ask:** "Can I print a statement showing the schedule and payment history?"

##### 14. Integrations with payment channels

**Why it matters:** If borrowers repay by mobile money or bank transfer, reconciling payments takes time.
**Ask:** "Does the system integrate with our payment channels, or do we record payments manually?" Be clear about the answer; many small-lender systems, including LoanTabs, record payments manually. See [mobile money loan repayments](https://www.loantabs.com/resources/mobile-money-loan-repayments/).

#### Accounting and reporting

##### 15. Built-in accounting

**Why it matters:** If loans and the books are separate, they drift apart. See the [accounting](https://www.loantabs.com/features/accounting/) features.
**Ask:** "Do loans and payments post to a double-entry ledger, and can I close a period?"

##### 16. Portfolio-at-risk and aging reports

**Why it matters:** These tell you the health of the loan book. See [portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/).
**Ask:** "Which risk reports are built in, and can I set the thresholds?"

##### 17. Provisioning

**Why it matters:** Setting aside for expected losses keeps profit honest. See [loan loss provisioning](https://www.loantabs.com/resources/loan-loss-provisioning-and-write-offs/).
**Ask:** "Is there a configurable provisioning schedule?"

##### 18. Collections tools

**Why it matters:** Late loans need a worklist. See the [collections reports](https://www.loantabs.com/features/delinquency-and-collections-reports/).
**Ask:** "Do I get a delinquency list and a daily collection sheet? Are reminders automatic?"

##### 19. Export

**Why it matters:** Your auditor, funder and regulator want the data in their format, and you want to be able to leave.
**Ask:** "Can every report be exported to CSV or PDF, and can I export my raw data?"

#### Getting started and staying safe

##### 20. Import from spreadsheets

**Why it matters:** You already have loans. Re-keying them is where projects stall. See [migrate loans from Excel](https://www.loantabs.com/resources/migrate-loans-from-excel/).
**Ask:** "Is there an import with a template and a validation report?"

##### 21. Security and hosting

**Why it matters:** The system holds your borrowers' personal and financial data.
**Ask:** "Where is the data hosted? How are customers separated? Is data encrypted in transit and at rest? What happens to my data if I leave?" See [cloud-based loan management software](https://www.loantabs.com/resources/cloud-based-loan-management-software/).

##### 22. Documentation and support

**Why it matters:** Staff turn over, and questions arise at 6pm on the last day of the month.
**Ask:** "Is there written documentation? How do I reach a person, and how fast is the response?"

##### 23. Transparent pricing and a trial

**Why it matters:** You should be able to try the system on your own data before you pay. See [loan management software pricing](https://www.loantabs.com/resources/loan-management-software-pricing/).
**Ask:** "Is there a free trial, are prices published, and what happens at renewal?"

#### Scoring the checklist

1. List the features above in a spreadsheet.
2. Mark each **Must have**, **Should have** or **Nice to have** for your business.
3. Score each product **2** (fully meets), **1** (partly) or **0** (does not).
4. Multiply by weight (3, 2, 1) and add up.
5. Trial the top two with a real sample of your loans, and check the schedules and reports by hand.

Software with a flashy dashboard and weak calculations loses to plain software that gets the schedules right. Test the arithmetic.

#### How LoanTabs scores on the checklist

LoanTabs covers configurable products with seven interest methods and a live schedule preview; fees that are deductible, capitalized or separate; approval rules per branch; 11 staff roles; borrowers, guarantors and collateral with documents; payments with PDF receipts and statements and a configurable allocation order; a double-entry ledger with period close; 28 reports including PAR, aging and provisions; CSV and PDF export; and Excel and CSV import. Penalties are applied by staff rather than automatically, and payment-channel integrations are not included: repayments are recorded manually. See the [feature overview](https://www.loantabs.com/features/) for the detail.

#### FAQ

##### What are the most important loan management software features?

Configurable loan products, correct schedules, approval workflow, borrower and collateral records, payments and receipts, accounting and portfolio reports.

##### Should I choose software with the most features?

No. Choose the software that covers your must-haves well. Extra features add cost and complexity.

##### Do I need accounting inside the loan software?

It is strongly recommended. When loans and payments post to a ledger automatically, your books and your loan book cannot drift apart.

##### How do I check that a product's calculations are right?

Take three real loans, calculate them by hand or in a spreadsheet, and compare with the software's schedule, balance and interest.

:::cta
Test the checklist against LoanTabs with a 30-day free trial and your own loans.
:::

### Loan management software pricing: models, costs and what to watch for

URL: https://www.loantabs.com/resources/loan-management-software-pricing/
Published: 2026-09-30

:::answer
Loan management software is usually priced as a monthly or annual subscription, charged per user, per branch, per loan, or as flat tiers. Prices range from free spreadsheet templates to thousands a month for enterprise systems. Compare the total yearly cost, including setup, renewal and add-ons, not the headline monthly price.
:::

"How much does loan management software cost?" has no single answer, because vendors price it in different ways and include different things. This guide explains the pricing models, what tends to be included or charged extra, the hidden costs, and a way to compare offers fairly. It deliberately does not quote competitors' prices, which change often and are best checked with the vendor.

#### The main pricing models

##### Subscription by tier

A fixed monthly or annual price for a plan, with each plan allowing a set number of users, branches or features. This is the most common model for small-lender software. It is predictable, and you pay more only when you grow into a bigger tier. LoanTabs uses this model: plans differ mainly by the number of branches and user seats, with unlimited borrowers, loans and statements.

##### Per-user pricing

You pay a fee per staff member who uses the system. It suits lenders with few staff, but costs climb quickly for institutions with many loan officers and cashiers.

##### Per-branch pricing

You pay per branch or location. It suits lenders with few branches and many staff.

##### Per-loan or per-borrower pricing

You pay for each active loan or borrower, or for volume bands. It aligns the cost with your activity but makes the bill hard to predict, and it can penalize you as your book grows.

##### Licence plus maintenance

You buy the software up front and pay an annual maintenance fee for support and updates. This is more common in installed software. It has a high entry cost and separate hardware costs.

##### Transaction or percentage fees

Some platforms charge a percentage of disbursements or payments. Read the terms carefully: over time this can cost far more than a flat subscription.

#### What does a plan usually include?

Compare like with like by checking which of these are included in the price:

- Number of **users and branches**
- **Loans, borrowers and storage** limits
- **Accounting** module
- **Reports** and exports
- **Support** level and hours
- **Training and documentation**
- **Data import** and migration help
- **Updates**
- **Custom fields, workflows or integrations**
- **SMS or email** sending, which may be billed separately through a provider

#### Costs beyond the sticker price

- **Setup or onboarding fees.** One-off charges for configuring the system.
- **Migration.** Moving your existing loans in may be free (self-service import) or a paid service.
- **Renewal price.** Some vendors offer a promotional first-year price that rises at renewal. Ask what you will pay in year two.
- **Add-ons.** Modules such as accounting, mobile apps or additional branches that are not in the base plan.
- **Third-party costs.** SMS gateways, payment providers, e-signature tools.
- **Training time.** The hours your staff spend learning the system.
- **Custom work.** Anything beyond the standard product is usually charged as professional services.
- **Exit costs.** Fees or effort to export your data if you leave.

#### The cost of not buying

Free tools are not free. A spreadsheet costs staff time every day, and a single wrong balance or missed arrears can cost more than a year of subscription. When you compare prices, put a figure on:

1. Hours spent each week recalculating balances, chasing late payers and producing reports.
2. Losses from errors, disputes and arrears you found too late.
3. The cost of not being able to give funders or auditors clean reports.

If software saves ten hours a month and prevents one dispute a year, it is worth more than it costs.

#### How to compare two offers

1. **Fix the scenario.** Number of users, branches and loans you expect over the next year.
2. **Get the year-one and year-two price** for that scenario from each vendor.
3. **Add setup, migration and add-on costs.**
4. **List what is not included** that you need.
5. **Add third-party costs** such as SMS.
6. **Divide by your expected number of loans** to get a cost per loan, as a sanity check.
7. **Compare the totals and the differences in capability**, not just the price.

#### Sample plan structure

To make this concrete, this is how a small-lender plan structure typically works. LoanTabs, for example, offers **Pro** for a single lender or loan officer (one branch, one user seat), **Corporate** for a small team (one branch, five seats, priority support), **Enterprise** for a multi-branch institution (up to 10 branches, unlimited seats) and a **Custom** plan for institutions that need SACCO governance, payroll or custom workflows built for them. Every plan includes unlimited borrowers, loans and statements. Every plan starts with a 30-day free trial and no credit card. Prices, promotional periods and renewal rates are on the [pricing page](https://www.loantabs.com/pricing/); pricing lives in one place so it cannot drift from the page you are reading.

#### What to ask a vendor about pricing

- What does each plan include, exactly?
- What is the price at renewal, and can it change during the term?
- Are there setup, migration or training fees?
- What happens if I exceed the limits of my plan?
- Can I move to a bigger or smaller plan, and how?
- What is charged extra?
- Are third-party costs (SMS, payments) separate?
- What is the notice period and refund policy if I cancel?

#### Red flags in pricing

- **No prices anywhere**, only "contact sales", for a product aimed at small lenders.
- **A very low first-year price** with no statement of the renewal price.
- **Percentage-of-disbursement fees** with no cap.
- **Charges for exporting your own data.**
- **A long lock-in** with no trial.

#### FAQ

##### How much does loan management software cost?

From nothing for spreadsheet templates to a few dollars a month for a solo lender's plan, to thousands for enterprise systems. Cost depends on users, branches, features and support.

##### Is there free loan management software?

There are free templates and some free or open-source tools, but they usually require you to do the setup, maintenance and support yourself. See [free loan management software](https://www.loantabs.com/resources/free-loan-management-software/).

##### Why do prices differ so much?

Products differ in scope (a calculator vs a full system with accounting), target customer (a solo lender vs a bank), and what is included (support, migration, custom work).

##### Should I choose monthly or annual billing?

Annual billing usually costs less per month. Try the product on a trial or monthly plan first if you are unsure, then switch.

##### Are there hidden costs?

There can be: setup fees, migration, add-on modules, third-party costs and renewal increases. Ask for a written year-one and year-two total.

:::cta
See LoanTabs plans and prices, and start a 30-day free trial with no credit card.
:::

### Loan origination vs loan servicing: what each covers and why it matters

URL: https://www.loantabs.com/resources/loan-origination-vs-loan-servicing/
Published: 2026-09-30

:::answer
Loan origination is everything up to disbursement: taking the application, checking the borrower, setting terms, approving and paying out. Loan servicing is everything after: collecting repayments, keeping balances right, producing statements and following up late accounts until the loan is closed. Small lenders usually need both in one system.
:::

The lending industry uses two words that beginners often confuse. Origination and servicing are two halves of one loan's life, and the software market splits along the same line. Knowing which half a product covers, and which half you actually need, saves you from buying the wrong tool.

#### Loan origination: from request to disbursement

Origination starts when a borrower asks for a loan and ends when the money is released. The work includes:

- **Application intake.** Capturing the borrower's details, the amount and purpose.
- **Documents and verification.** Collecting ID, proof of income, security documents.
- **Assessment.** Reviewing affordability, history, guarantors and collateral.
- **Terms.** Choosing the loan product and agreeing amount, term, rate and fees.
- **Approval.** The right people sign off according to your policy.
- **Documentation.** Producing the agreement.
- **Disbursement.** Releasing the funds.

Origination is judgement-heavy. It decides who gets credit, and most credit losses trace back to decisions made here.

#### Loan servicing: from disbursement to closure

Servicing begins after disbursement and lasts as long as the loan does. It covers:

- **Repayment schedule.** Generating and maintaining installment dates and amounts.
- **Payment processing.** Recording payments and allocating them to penalties, fees, interest and principal.
- **Account maintenance.** Keeping balances, handling changes such as restructuring or stopping interest.
- **Statements and receipts.** Giving borrowers proof of what they paid and owe.
- **Collections.** Identifying late payers and following up.
- **Reporting.** Portfolio at risk, aging, provisions and income.
- **Closure.** Recording full repayment, settlement or write-off.

Servicing is process-heavy. It is repetitive, high-volume and error-prone, which is exactly where software helps most.

#### Side by side

| | Loan origination | Loan servicing |
| --- | --- | --- |
| Starts | A borrower requests a loan | The loan is disbursed |
| Ends | Disbursement | Repayment, settlement or write-off |
| Main risk | Lending to the wrong borrower or on the wrong terms | Errors, late payments and lost records |
| Main work | Assess, decide, document | Record, reconcile, follow up |
| Key records | Application, borrower file, approval | Schedule, payments, balance, statements |
| Volume | Peaks around new lending | Grows with the size of the loan book |
| Typical software | Loan origination system (LOS) | Loan servicing system |

#### Why the two are sold separately

In large lending, origination and servicing are often different systems, sometimes bought from different vendors. A bank might use an origination platform with automated credit scoring and a separate servicing platform for the loan book. That split makes sense when volumes are large, underwriting is complex and integration teams exist.

Small lenders rarely benefit from the split. Two systems means two records of each loan, a hand-off between them and the risk that the two disagree. If a small lender buys origination software and servicing software separately, they end up re-keying the loan at disbursement.

#### Loan management systems combine both

A **loan management system (LMS)** covers origination and servicing, usually with accounting and reporting, in one record. The application becomes the loan, and the same record carries the schedule, payments and statements. For most small lenders, money lenders, MFIs and SACCOs, that is the right shape. Our guide to [what loan management software is](https://www.loantabs.com/resources/what-is-loan-management-software/) covers it in detail.

#### What to check in origination features

- Configurable **loan products** so terms follow policy.
- A **schedule preview** before saving.
- **Borrower, guarantor and collateral** records with documents.
- An **approval workflow** by role, with a log.
- Support for **drafts** while information is gathered.

#### What to check in servicing features

- **Payment recording** with receipts and evidence.
- A configurable **allocation order** for partial payments.
- **Statements** for borrowers.
- **Collections tools**: overdue worklists and aging reports.
- **Accounting** that posts automatically.
- **Audit trail** of edits and reversals.

#### What origination software does not do

Origination software supports decisions; it does not make them. Many small-lender systems, including LoanTabs, record a credit score field but do not calculate scores, do not verify identity automatically, and do not pull credit-bureau reports. If you need automated underwriting or bureau integrations, ask specifically. Origination also does not tell you whether a lending activity is licensed or lawful in your location; that is a compliance matter.

#### An example of the handover

A borrower asks for a 1,000 loan. In **origination**, the officer records the borrower, attaches ID, chooses the product, previews the schedule, and sends the loan for approval. The branch manager approves. In **servicing**, the loan is disbursed, the borrower pays 88.85 monthly, each payment is allocated and receipted, and the delinquency report flags the third installment as five days late. In a loan management system, this is one record throughout. In two separate systems, someone has to move it across.

#### The hand-off checklist

The moment of disbursement is where a loan changes hands from origination to servicing, and it is where things are dropped. Before you release money, confirm that the loan record holds the final terms and schedule, the signed agreement, the borrower's ID and other documents, guarantor and collateral details, and the approval decision. After disbursement, confirm that the first installment date is right and that the borrower has been given their schedule and told how to pay. A short checklist at this point prevents most early disputes.

#### How LoanTabs handles both

LoanTabs is a loan management system, so origination and servicing share one record. See [loan origination](https://www.loantabs.com/features/loan-origination/) for products, drafts, schedule previews and approvals, and [loan servicing](https://www.loantabs.com/features/loan-servicing/) for repayments, receipts, statements, penalties and write-offs. The [collections and arrears reports](https://www.loantabs.com/features/delinquency-and-collections-reports/) cover the follow-up.

#### FAQ

##### What is loan origination?

The process of creating a loan: application, assessment, terms, approval and disbursement.

##### What is loan servicing?

Managing a loan after it is disbursed: recording payments, keeping balances accurate, producing statements and collecting overdue amounts.

##### Is loan origination software the same as loan management software?

Loan origination software covers only the front end. Loan management software usually includes origination and servicing, with accounting and reports.

##### Do I need separate origination and servicing software?

Small lenders usually do not. One system that covers both avoids re-keying and mismatched records.

:::cta
See origination and servicing in one record: 30-day free trial, no credit card.
:::

### Loan repayment allocation order: what a payment pays off first

URL: https://www.loantabs.com/resources/loan-repayment-allocation-order/
Published: 2026-09-30

:::answer
Repayment allocation is the order in which a loan payment is applied to what the borrower owes: usually penalties, then fees, then interest, then principal. The order matters most when a payment is partial or late, because it decides which balances are cleared first and how much interest keeps accruing.
:::

When a borrower pays exactly the installment on time, allocation is invisible: the installment covers the interest and principal due. The rules only show when the payment is short, late or larger than expected. Then the question "what did this payment actually pay off?" has a real answer, and different answers lead to different balances, different interest and sometimes different disputes.

#### What can a payment be applied to?

A loan usually has up to four kinds of amount owing:

- **Penalties.** Charges for late or missed payments.
- **Fees.** Processing, admin or other fees not yet paid.
- **Interest.** Interest that has accrued or is due.
- **Principal.** The amount originally borrowed that remains unpaid.

An allocation order (sometimes called a waterfall) says which of these a payment clears first, then which second, and so on.

#### The common default: penalties, fees, interest, principal

Many lenders apply payments in this order:

1. Penalties
2. Fees
3. Interest
4. Principal

The reasoning is that penalties and fees are small, already earned charges, and that interest is owed for time that has already passed, so they are cleared before principal reduces. This order maximizes the lender's recovery of charges and is the most widely used.

#### A worked example

A borrower's installment is **100.00**, made up of principal 80, interest 20. The installment is late, and the loan also carries a penalty of 10 and an unpaid fee of 5. The total now due is 115. The borrower pays **60**.

**Order: penalties, fees, interest, principal**

| Applied to | Amount owed | Paid | Left |
| --- | --- | --- | --- |
| Penalty | 10 | 10 | 0 |
| Fee | 5 | 5 | 0 |
| Interest | 20 | 20 | 0 |
| Principal | 80 | 25 | 55 |

After the payment, all charges and interest are cleared, and 55 of principal remains overdue.

**Order: principal first, then interest, fees, penalties**

| Applied to | Amount owed | Paid | Left |
| --- | --- | --- | --- |
| Principal | 80 | 60 | 20 |
| Interest | 20 | 0 | 20 |
| Fee | 5 | 0 | 5 |
| Penalty | 10 | 0 | 10 |

Now principal has reduced by 60, but interest, fees and penalties are still outstanding. Which is better depends on your policy. Principal-first reduces the debt faster, and therefore future interest; charges-first protects earned income.

#### Why the order matters

- **It changes future interest.** Paying principal first lowers the balance that interest is charged on. Paying interest first leaves the principal higher for longer.
- **It changes what is overdue.** With charges-first, a partial payment can leave the installment's principal overdue while the interest is cleared, which affects the days-past-due count and the aging bucket the loan sits in. See [days past due and loan aging](https://www.loantabs.com/resources/days-past-due-and-loan-aging/).
- **It changes disputes.** A borrower who thinks a payment reduced their debt will argue if you applied it to penalties. The rule must be written in the loan agreement and applied to everyone.
- **It changes your accounts.** Income recognition depends on what the payment cleared: interest, fees or penalties count as income, principal does not.

#### Allocation across installments

There is a second question: when a payment is more than the current installment, which installment does it clear? Two common approaches:

- **Oldest first.** The payment clears the earliest overdue installment fully before touching later ones. This is the norm.
- **Advance payments.** Amounts beyond all due installments can reduce principal on the loan, shorten the term or be held as a credit. State which in the agreement.

#### Interest that keeps accruing

One more effect deserves attention. On a reducing balance loan, interest accrues on the outstanding principal for each day it stays unpaid. If a partial payment is applied to penalties, fees and interest first, the principal is untouched and keeps generating interest, so the borrower can fall further behind even while paying something every month. If your policy applies principal first, the balance falls faster, but the charges linger. Neither is wrong; the point is to choose knowingly, write it down and be able to explain it to a borrower in one sentence.

#### Setting a sensible policy

1. **Choose one order per loan product** and apply it to every loan on that product.
2. **Write it in the agreement** in plain words: "Payments are applied first to penalties, then fees, then interest, then principal."
3. **Be consistent about oldest-first** when installments are overdue.
4. **Decide how you treat early or extra payments** and record it in the loan terms.
5. **Check local rules.** Some jurisdictions restrict how penalties and fees can be collected, or require payments to reduce principal before fees.

#### Repayment allocation in LoanTabs

In LoanTabs the repayment order is part of each loan product, and it can be rearranged by dragging the components into the order you want. The default order is **penalty, fees, interest, principal**. When a payment is recorded against a loan, it is allocated using the product's order, and the loan statement shows the result. Penalties are applied by staff from the penalty types you define, so the order determines how those penalties are cleared. See [loan servicing](https://www.loantabs.com/features/loan-servicing/) for how payments and receipts work, and [deductible vs capitalized fees](https://www.loantabs.com/resources/loan-fees-deductible-vs-capitalized/) for how fees enter the loan.

#### FAQ

##### What order should a loan payment be applied in?

Most lenders apply payments to penalties first, then fees, then interest, then principal. The right order is the one your loan agreement states and applies consistently, subject to local law.

##### What happens to a partial payment on a loan?

It is allocated using the same order: it clears the first component fully before moving to the next. If it does not cover the installment, the remainder stays overdue.

##### Can the borrower choose where a payment goes?

Only if your agreement allows it. Most agreements reserve the allocation order to the lender.

##### Does the allocation order affect interest?

Yes. If principal is reduced first, less interest accrues later. If interest and charges are cleared first, the principal stays higher for longer.

:::cta
Set the repayment order per loan product and see every payment allocated on the statement.
:::

### Microfinance software: what MFIs need and how to choose it

URL: https://www.loantabs.com/resources/microfinance-software-guide/
Published: 2026-09-30

:::answer
Microfinance software is a management system for microfinance institutions (MFIs) that handles many small loans across branches and officers: loan products, schedules, payments, portfolio-at-risk reporting, provisioning, staff roles and accounting. Some MFIs also need group lending and savings. The right system depends on which of these you actually run.
:::

Microfinance lends small amounts to people and businesses that banks often do not serve. The business model is high volume and low balance: thousands of small loans, frequent repayments, field staff and tight margins. That shapes what software has to do. A system built for a few large bank loans will frustrate an MFI, and one built for a solo lender may not survive a multi-branch operation. This guide explains what an MFI needs, the features to look for, the practical realities of microfinance operations, and how to choose.

#### What is a microfinance institution?

A microfinance institution (MFI) provides financial services, mainly small loans, to low-income individuals, small businesses and households. Depending on the country, MFIs can be non-profit organizations, licensed companies, cooperatives or deposit-taking institutions. Some offer only credit; others also offer savings, insurance, and training. For the differences between MFIs and SACCOs, read [SACCO vs MFI: what's the difference](https://www.loantabs.com/resources/sacco-vs-mfi-difference/).

#### What microfinance software has to handle

##### Many small loans

An MFI may have tens of thousands of active loans, each small. Software must record payments quickly, keep schedules accurate at volume and let staff find any loan in seconds.

##### Frequent repayments

Weekly and biweekly repayments are common, often collected by field officers. Schedules must support these frequencies, and the workflow must support recording payments in batches after a collection round.

##### Multiple branches and field officers

Branches, loan officers and collection routes are the structure. Software should separate branch data, assign loans to officers, and show branch and officer performance.

##### Group and individual lending

Many MFIs lend to groups where members guarantee each other, as well as to individuals. Group lending needs a group record, meetings, and loans linked to groups. See [how to run a group lending program](https://www.loantabs.com/resources/how-to-run-a-group-lending-program/).

##### Savings

Some MFIs and most SACCOs take savings. Savings features, such as accounts, deposits, withdrawals and interest, are a different system from loans and are not present in every product.

##### Portfolio quality

Funders and regulators focus on portfolio at risk, write-offs and provisions. Software needs to compute them accurately and consistently. See [what is portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/).

##### Reporting to funders and regulators

MFIs often report regularly to donors, investors and regulators, sometimes in prescribed formats. Software should provide standard reports and exports that can be adapted.

##### Accounting

Microfinance accounting includes loan portfolio, interest income, fees, provisions and, for some, savings and donor funds. A ledger that loans and payments post to keeps everything consistent.

#### The features to look for

| Area | What to look for |
| --- | --- |
| Loan products | Interest methods (flat, reducing balance), fees, weekly and monthly frequencies, amount and term limits |
| Borrowers | Individual and business records, documents, guarantors, collateral, custom fields |
| Group lending | Group records, group loans, meeting schedules, member guarantees |
| Payments | Recording, receipts, allocation order, batch entry |
| Approvals | Roles, per-branch rules, audit trail |
| Branches and staff | Separate branch data, roles, officer assignment |
| Collections | Overdue worklists, daily collection sheets by officer |
| Risk reporting | PAR, aging, provisions, loan classification, write-offs |
| Savings | Accounts, deposits, withdrawals (if you take savings) |
| Accounting | Double-entry ledger, period close, statements |
| Import and export | Bring data in, produce funder reports |
| Security | Roles, data separation, audit |
| Support | Documentation, training, human help |

Use the [loan management software features checklist](https://www.loantabs.com/resources/loan-management-software-features-checklist/) for the general list, and add the group and savings items if they apply to you.

#### Operational realities to plan for

##### Connectivity

Field officers often work where mobile data is patchy or absent. Most cloud systems, including LoanTabs, require an internet connection and have no offline mode. A common approach is to collect on paper or by mobile money in the field, then record payments in the office at the end of the day. If your officers must record payments at the point of collection, check exactly what offline capability a product offers. See [cloud-based loan management software](https://www.loantabs.com/resources/cloud-based-loan-management-software/).

##### Mobile money

In many markets, borrowers repay through mobile money. The important questions are whether the software integrates with the payment provider or whether payments are recorded manually, and how you reconcile. Do not assume integration; ask. See [mobile money loan repayments](https://www.loantabs.com/resources/mobile-money-loan-repayments/).

##### Literacy and language

Borrowers and staff may have limited literacy, and documents may need to be explained aloud in local languages. Check whether the software supports the language of your staff; many systems are in English only.

##### Cash handling

Cash is still king in many microfinance settings. Cash controls, receipts, daily reconciliation and separation of duties matter as much as the software.

##### Regulation

MFIs are regulated differently in each country: licensing, capital, provisioning rules, interest caps, reporting formats. Software helps you follow your own procedures and produce reports, but it does not decide what is lawful. Involve your compliance advisers.

##### Data quality and migration

Many MFIs move from spreadsheets or older systems. Plan the migration carefully. See [how to migrate your loans from Excel](https://www.loantabs.com/resources/migrate-loans-from-excel/).

#### Choosing microfinance software

1. **Write down what you actually run**: individual loans, group loans, savings, or all three; number of branches and officers; loan volumes.
2. **Mark must-haves.** If you take savings or run groups, make those must-haves.
3. **Ask hard questions about what is included** versus custom. Vendors often show group and savings features in demos that are custom builds.
4. **Test with your own data**, including a group scenario if relevant.
5. **Check risk reporting.** PAR, aging and provisions should match the definitions your funders and regulators use.
6. **Test collections workflows**: worklists and officer sheets.
7. **Check pricing** against your growth. Per-loan pricing can be costly at microfinance volumes.
8. **Confirm support and training** that suits your staff.
9. **Plan the exit**: export of all your data.

See [how to choose loan management software](https://www.loantabs.com/resources/how-to-choose-loan-management-software/) for the full buyer's guide.

#### Reporting to funders: the indicators MFIs are asked for

Funders, investors and regulators tend to ask for the same core indicators. Confirm that your software can produce each, on the definition the funder uses:

| Indicator | What it measures |
| --- | --- |
| Number of active borrowers | Outreach |
| Gross loan portfolio | The total outstanding principal |
| Average loan balance | Depth of outreach and product fit |
| Portfolio at risk (PAR30, PAR90) | Loan quality. See [what is portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/) |
| Write-off ratio | Actual losses |
| Provision coverage | How well expected losses are covered |
| Portfolio yield | Income earned on the average portfolio |
| Operating expense ratio | Cost to run the portfolio |
| Cost per borrower | Efficiency |
| Borrower retention | Whether clients return for another loan |
| Loans per officer | Productivity |
| Repayment rate | Collections performance |

Definitions differ between funders and countries, so agree them in writing and check how your system calculates each one. A report that looks right but uses a different PAR definition can cause problems in an audit or a covenant review.

#### A group loan record: what to look for in a demo

If you lend to groups, do not accept a slide. Ask the vendor to show, live, how the system handles a group of eight members:

1. Creating the group, its officers and its meeting day.
2. Adding members, each with their own borrower record.
3. Creating a loan for each member, linked to the group and to a loan cycle.
4. Recording a meeting where seven members pay and one does not.
5. Showing the group's arrears and the absent member's overdue installment.
6. Producing a group-level repayment report.
7. Moving the group to a second, larger cycle.

If the vendor calls this "a custom build," ask for the scope, cost and timeline in writing.

#### An implementation roadmap for an MFI

- **Weeks 1 to 2: preparation.** Document your products, branch structure, roles, chart of accounts and reporting requirements. Clean your borrower and loan data.
- **Weeks 3 to 4: configuration and pilot.** Set up products, staff and approval rules. Import one branch's data, reconcile it and let a small team use it for real work.
- **Weeks 5 to 8: rollout.** Train officers and cashiers, import remaining branches, and run in parallel through at least one collection cycle.
- **Weeks 9 to 12: stabilize.** Review the first month-end close, PAR and provisions against your old figures, fix data issues, and set the reporting routine for funders.

Real timelines depend on your size and data quality, so treat these as a starting shape. Field officers need the most training and the most patience.

#### The total cost of ownership

Compare systems on more than the subscription. Include setup and migration, training and travel, any custom work, additional branches or users, SMS or payment costs charged by third parties, and the internal time your team spends. Price at microfinance volumes: a per-loan model that looks cheap at 500 loans can be expensive at 20,000. See [loan management software pricing](https://www.loantabs.com/resources/loan-management-software-pricing/).

#### A field officer's day, and what the software must support

Software choices look different from the field. A loan officer typically starts by printing or checking their collection sheet for the day, visits borrowers or holds group meetings, collects cash or notes mobile money payments, issues receipts, and returns to the branch to bank the cash and record everything before closing. The system should make the morning and evening steps quick: a printable sheet per officer, batch recording of payments, receipts that match what was handed out, and a reconciliation of cash in hand against payments recorded. If recording a day's collections takes an officer hours, they will fall behind, and your data will be days old. Ask to see this end-of-day routine, not just the dashboard.

#### Individual and group lending: how the two differ for a system

Individual loans attach to one borrower, one schedule and one set of security. Group loans attach members to a group, share meetings and a collective guarantee, and are collected in one place at one time. A system that handles individual loans well can still be awkward for groups, because the natural unit of work changes from the loan to the meeting. If most of your portfolio is group-based, make that the centre of your evaluation rather than an afterthought.

#### Requirements that are easy to overlook

- **An audit trail** of edits, reversals and deletions, and a report that surfaces them.
- **Period close**, so a reconciled month cannot be changed silently.
- **Role separation** between cashiers, officers and accountants.
- **Data export**, so you can leave and can share data with auditors.
- **Security and data protection**, given that borrowers' data is sensitive.
- **Documentation and training material** your staff can read in their own time.

#### A note on honesty

Microfinance software marketing often lists everything an MFI could want. Insist on a clear line between what is available today and what is custom or planned. It is far cheaper to learn in the trial that group lending is a custom build than after go-live.

#### What LoanTabs covers for MFIs

LoanTabs suits MFIs that lend to individuals and businesses across branches. It provides loan products with seven interest methods and weekly, biweekly and monthly frequencies among others; borrower, guarantor and collateral records; per-branch approval rules with 11 staff roles; payments with PDF receipts and configurable allocation; a delinquency worklist, daily collection sheet, portfolio at risk, aging, provisions and loan classification; a double-entry ledger; and 28 reports exportable to CSV and PDF. Enterprise supports up to 10 branches with unlimited seats. **Group lending, member savings, share capital, dividends and payroll are not part of the standard product; they are delivered as custom implementations on the Custom plan.** LoanTabs needs an internet connection, has no offline mode, and records repayments manually rather than integrating with mobile money providers. See the [microfinance solutions page](https://www.loantabs.com/solutions/microfinance-institutions/), [multi-branch and staff](https://www.loantabs.com/features/multi-branch-and-staff/) and [collections and arrears reports](https://www.loantabs.com/features/delinquency-and-collections-reports/).

#### FAQ

##### What is microfinance software?

Software that helps microfinance institutions manage loans, borrowers, repayments, staff, accounting and portfolio reporting, sometimes including group lending and savings.

##### What is the difference between microfinance software and loan management software?

Microfinance software is loan management software tailored to microfinance: high volumes of small loans, group lending, branch and officer structures and portfolio-quality reporting. Many general loan management systems cover the individual-lending part.

##### Does microfinance software include savings?

Some products do; many do not. If you take savings, make it a must-have and test it.

##### Can I use LoanTabs for group lending?

Group lending is available as a custom implementation on the Custom plan, not as a standard feature.

##### How do I report PAR to funders?

Use a system that computes PAR with clear thresholds and exports the result. Confirm that its definition matches your funder's.

:::cta
See how an MFI runs multiple branches, approvals and PAR reporting on LoanTabs.
:::

### How to migrate your loans from Excel to loan management software

URL: https://www.loantabs.com/resources/migrate-loans-from-excel/
Published: 2026-09-30

:::answer
To migrate loans from Excel to loan management software, clean your spreadsheet, define your loan products in the new system, import a small sample first, reconcile balances against your old records, then import the full book and run both in parallel briefly before switching. Most problems come from data quality, not the import.
:::

Almost every lender who buys loan management software already has a loan book in Excel. The migration is the part people worry about, and it is more manageable than it looks if you follow an order. The main risk is not the software; it is discovering, during import, how inconsistent the spreadsheet was. That is a good thing to find out, as long as you plan for it.

If you are still deciding whether to move at all, our [Excel vs loan management software comparison](https://www.loantabs.com/compare/excel-vs-loan-management-software/) sets out the trade-offs honestly.

#### Before you start: define what "done" looks like

Migration is finished when, for every active loan, three things match your old records: the **outstanding balance**, the **next installment due**, and the **payment history**. Everything else is secondary. Write that down as your acceptance test.

#### Step 1: take a clean copy

Never work on the only copy of your loan book. Save a dated copy of the spreadsheet as read-only and do all preparation on a duplicate.

#### Step 2: decide what to migrate

You do not always need everything. Common approaches:

- **Active loans only, with full payment history.** Best for accuracy; more effort.
- **Active loans with opening balances.** Each loan starts in the new system with its outstanding principal, interest and the next due date, and history is kept in the old file. Faster, but you lose per-loan payment history.
- **Everything, including closed loans.** Only if you need the history in the system for reporting.

Choose deliberately, and keep the old file as an archive.

#### Step 3: clean the data

This is the longest step, and it pays off. Look for:

- **Duplicate borrowers**, with different spellings of the same name.
- **Missing fields**: phone numbers, ID numbers, dates.
- **Inconsistent dates**: text, different formats, impossible values.
- **Inconsistent amounts**: numbers stored as text, currency symbols, mixed units.
- **Loans without a clear product or interest method.**
- **Balances that do not reconcile** to payments.
- **Status confusion**: loans marked active that are actually closed or written off.

Fix the data in the spreadsheet so that each loan has one row and each borrower one record.

#### Step 4: define your loan products in the new system

Before importing loans, create the products they belong to: interest method, rate, fees, term limits and repayment frequency. If your old loans used inconsistent terms, decide which product each belongs to. See [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/) if you need to check which method a loan really used.

#### Step 5: map your columns

Compare your spreadsheet's columns with the import template's fields: borrower name, contact, ID number, loan amount, interest rate, term, start date, product, payments and so on. Rename and reorder your columns to match. Decide how to handle fields the template does not have, such as custom fields you can add on borrowers or loans.

#### Step 6: import a small sample first

Import 10 to 20 loans, including awkward ones: an early payoff, a late payment, a partial payment, a renegotiated loan. Check each against your records: schedule, balance, next due date. If the numbers differ, find out why before importing more. The cause is usually a data issue or a difference in interest method.

#### Step 7: reconcile

For the sample and then the full import, compare:

- **Total outstanding principal** in the old file and in the new system.
- **Number of active loans.**
- **Overdue amounts** and the number of overdue loans.
- **Interest income to date**, if you migrate history.

Differences of a few cents can come from rounding. Anything larger needs an explanation.

#### Step 8: import the full book

Import the rest, in batches if the system prefers. Fix rows the validation report rejects, and re-import those.

#### Step 9: run in parallel briefly

For a short period, such as one or two collection cycles, record new payments in both systems, or record in the new system and check against the old. Confirm that balances stay in step. Then stop updating the old file and mark it archived.

#### Step 10: train the team and switch

Give staff the documentation and a short practice session on real tasks: recording a payment, printing a receipt, finding overdue loans. Set a clear cut-over date, after which the old spreadsheet is read-only.

#### Common problems

- **Balances differ because the old spreadsheet used a different interest method** than the product you chose. Match the product to the old method or decide on the change deliberately.
- **Dates in different formats** shift installment dates. Standardize before import.
- **Payments recorded against the wrong loan.** Reconcile per loan, not only in total.
- **Closed loans mixed in with active ones.** Filter and check the status.
- **Staff keep updating the old file.** Make it read-only on the cut-over date.

#### Migration checklist

- Dated read-only copy saved
- Scope decided (active only, opening balances, or history)
- Data cleaned and de-duplicated
- Products created in the new system
- Columns mapped to the template
- Sample imported and checked
- Totals reconciled
- Full import completed and errors fixed
- Parallel run finished
- Staff trained
- Cut-over date set and old file archived

#### Migrating to LoanTabs

LoanTabs gives you two routes. You can import **borrowers by CSV**, using a template, with a validation report and a downloadable list of any rows that failed. Or you can use the free **Excel starter template** to import **borrowers, loans and payments** together; it supports flat, reducing balance and interest-only loans. Both are described in the [borrower management](https://www.loantabs.com/features/borrower-management/) and [loan management solution](https://www.loantabs.com/loan-management-solution/) pages, and in the [Admin configuration guide](https://www.loantabs.com/docs/institution-staff/10-admin-configuration/). Start with the free 30-day trial to test a sample with no commitment.

#### FAQ

##### How long does it take to migrate from Excel?

For a small lender with clean data, a few days. For a large book with messy data, plan for weeks, most of it spent cleaning.

##### Can I import loans and payment history?

Yes. The LoanTabs Excel starter template imports borrowers, loans and payments.

##### What if my spreadsheet is a mess?

That is normal. Clean it in the spreadsheet first, import a small sample, and fix problems as you find them. Cleaning is the value, not a cost.

##### Should I migrate closed loans?

Only if you need them for reporting. Otherwise keep them in the archived spreadsheet.

##### Will I lose my data if I switch software again later?

Not if you choose a product that exports your data. Check this before you commit.

:::cta
Import a sample of your loan book from Excel during a 30-day free trial.
:::

### Mobile money loan repayments: how lenders record and reconcile them

URL: https://www.loantabs.com/resources/mobile-money-loan-repayments/
Published: 2026-09-30

:::answer
When borrowers repay by mobile money, the lender must record each payment against the right loan and reconcile the money that arrived in its mobile money account. The routine is: capture the transaction reference, record the payment with the date and amount, issue a receipt, and reconcile the account daily against the loan system.
:::

In many markets, mobile money is the way borrowers actually pay. It is convenient, but it moves the lender's work from counting cash to matching transactions. A payment that arrives with the wrong reference, or is recorded twice, becomes an argument with a borrower and a hole in the books. This guide explains how lenders typically handle mobile money repayments, the risks, and a reconciliation routine that works even when the loan software does not integrate with the mobile money provider.

#### How borrowers repay by mobile money

There are several common patterns:

- **Paying to the lender's till or paybill.** The borrower sends money to a business number and quotes the loan or account number as the reference.
- **Paying an officer's personal wallet.** The officer then transfers to the lender. This is risky and best avoided, because it mixes funds and invites loss.
- **Paying through an agent.** A cash-in at an agent, who forwards to the lender.
- **Bank-to-mobile transfers** for larger amounts.

Whatever the pattern, the lender needs to know three things: who paid, how much and when, and the transaction reference that proves it.

#### The core problem: matching money to loans

Mobile money transactions arrive as a statement of credits to the lender's account. Each credit must be matched to a borrower and a loan. Errors come from:

- **Missing or wrong references**, so the money cannot be matched.
- **Payments by someone other than the borrower**, such as a relative.
- **Duplicates** recorded twice, or one payment split across loans.
- **Timing differences** between the transaction and its recording.
- **Charges and fees** taken by the provider, so the amount that arrives is not the amount sent.
- **Reversals and failed transactions.**

#### A recording routine that works

##### 1. Capture the transaction reference

Every mobile money payment has a unique transaction ID. Record it with the payment. It is your proof, and the key for reconciliation.

##### 2. Record the payment against the loan

Enter the amount, the date the money was received (not the date you got around to entering it), and the payment method. Let the loan system allocate it by your repayment order. See [loan repayment allocation order](https://www.loantabs.com/resources/loan-repayment-allocation-order/).

##### 3. Issue a receipt

Give the borrower a receipt, printed or sent, with the amount, date, reference and the remaining balance.

##### 4. Reconcile daily

At the end of each day, compare the mobile money account's credits with the payments recorded in the loan system:

- List the day's credits from the mobile money statement.
- List the payments recorded in the loan system with method "mobile money".
- Match them by transaction reference and amount.
- Investigate anything unmatched: money received but not recorded, or recorded but not received.

##### 5. Handle unmatched receipts

Money that arrives without a clear reference goes to a suspense account until identified, and is chased the same day. Do not leave it unapplied for weeks.

##### 6. Keep the accounts straight

Treat the mobile money account as a cash account in your books, with the same discipline as a bank account: daily balance, monthly reconciliation to the provider's statement, and controls over who can make withdrawals. Provider charges are expenses; record them.

#### Controls to put in place

- **A dedicated business account or till**, never personal wallets.
- **Separation of duties**: the person who records payments is not the person who withdraws or reconciles.
- **Limits and approvals** on transfers out.
- **Daily reconciliation** signed off by a second person.
- **A clear rule for references**: what borrowers must quote, and communicated to them.
- **Audit review** of edited or deleted payments.
- **Prompt receipts** so borrowers can catch mistakes.

#### Common errors

- **Recording the entry date, not the payment date**, which makes a loan look late when it was not.
- **Recording the same payment twice** after a phone message and a statement line.
- **Applying money to the wrong borrower** when references are similar.
- **Forgetting provider fees** in the books.
- **Leaving suspense items unresolved.**
- **Officers holding funds** and delaying banking.

#### Integration or manual recording?

Some lending platforms connect to mobile money providers so that payments are matched automatically. Others, including many small-lender systems, record payments manually. Integration reduces effort but depends on the provider's interfaces, costs and reliability, and it is not available everywhere. When evaluating software, ask directly: does it integrate with our mobile money provider, or do we record payments ourselves? If it is manual, the routine above is essential. See [how to choose loan management software](https://www.loantabs.com/resources/how-to-choose-loan-management-software/).

#### Mobile money repayments in LoanTabs

LoanTabs records repayments **manually**: staff enter each payment against a loan, can attach evidence such as a screenshot or a reference, and print a PDF receipt; the payment is allocated by the product's repayment order and posts to the ledger. LoanTabs does **not** integrate with M-Pesa, MTN Mobile Money, Airtel Money or banks, and does not send payment requests. A **cash account** can be used to represent a mobile money till, so daily reconciliation can be done against the account's balance and the Cash Ledger report. Payments can be corrected but not deleted through the interface, and the Exceptions and audit report highlights late, edited or deleted payments. See [loan servicing](https://www.loantabs.com/features/loan-servicing/) and [accounting](https://www.loantabs.com/features/accounting/).

#### FAQ

##### How do I record mobile money repayments?

Record the amount, the date received and the transaction reference against the loan, issue a receipt, and reconcile the mobile money account to your records daily.

##### Does LoanTabs integrate with mobile money?

No. Payments are recorded manually. A cash account can represent your mobile money till for reconciliation.

##### What should a borrower quote as the payment reference?

Something unique that identifies the loan, such as the loan or account number. Tell borrowers clearly and print it on their schedule and receipts.

##### How do I handle a payment with no reference?

Post it to a suspense account and find the payer the same day, then apply it to the correct loan.

##### Should officers accept payments to their personal numbers?

No. It creates risk of loss, fraud and disputes. Use the institution's own till or paybill.

:::cta
Record repayments with receipts and reconcile against a cash account for your mobile money till.
:::

### Online loan applications: how lenders can take and process applications digitally

URL: https://www.loantabs.com/resources/online-loan-applications-guide/
Published: 2026-09-30

:::answer
An online loan application process captures and processes loan requests digitally instead of on paper. It can be staff-side, where your team enters the application in a system, or borrower-side, where the borrower applies on a website or app. Both need identity verification, a clear approval workflow, a record of every decision and secure handling of personal data.
:::

"Online loan applications" means different things to different lenders. To a fintech, it means a borrower filling in a form on their phone and receiving a decision in minutes. To a small money lender or MFI, it often means something more modest and more useful: staff entering each application into a system, with documents attached, instead of writing it on paper. Both are legitimate, and both need the same disciplines. This guide explains the models, the steps and the risks, so you can decide what fits your lending.

#### Two models of online application

##### Staff-side application entry

The borrower deals with a person: in a branch, on a visit, by phone or through an agent. The staff member enters the application into the loan system, attaches documents and moves it through approval.

**Suits:** in-person, agent-led and relationship lending; lenders in markets where face-to-face contact is the norm; institutions that want consistent data capture without building a borrower-facing product.
**Strengths:** staff can check details as they capture them; fewer fraudulent or incomplete applications; lower technology risk; works for borrowers without smartphones.
**Limits:** capacity is limited by staff; borrowers cannot apply outside working hours.

##### Borrower-side self-service

The borrower applies themselves, through a website, app or messaging channel, uploading documents and receiving updates.

**Suits:** higher-volume or remote lending, digitally comfortable borrowers, products with simple, standardized terms.
**Strengths:** scale, availability at any hour, lower cost per application.
**Limits:** identity verification and fraud risk are harder; data quality depends on the borrower and on validation rules; you need strong security, and often specialist services for ID checks.

Many lenders start staff-side and add a borrower channel later, once their process, controls and data are solid. For marketplace models that connect investors with borrowers online, see [peer-to-peer vs private lending](https://www.loantabs.com/resources/peer-to-peer-vs-private-lending/).

#### The application process, step by step

##### 1. Capture the applicant

Record the borrower's identity and contact details, whether they are a person or a business, and their identification number. Use a consistent form so every application has the same fields, and add custom fields for anything your policy needs.

##### 2. Capture the request

Amount, purpose, term and preferred repayment frequency. Choose the loan product that fits, so the interest method, fees and limits are applied automatically.

##### 3. Collect documents

ID, proof of address and income, references, business documents, and any security or guarantor documents. Attach them to the record. See the [KYC checklist for small lenders](https://www.loantabs.com/resources/kyc-checklist-for-small-lenders/).

##### 4. Verify

Check that documents are genuine and consistent, call references, and, where risk warrants, visit. Verification is where most fraud is caught.

##### 5. Assess

Judge affordability, existing debts and the borrower's history, and decide on security. Record the assessment, not only the outcome.

##### 6. Preview the schedule

Show the borrower the repayment schedule and total cost before anything is committed. This is good practice, and in many places a legal requirement. See [loan amortization schedule explained](https://www.loantabs.com/resources/loan-amortization-schedule-explained/).

##### 7. Approve

Route the application through your approval workflow, with the right roles for the amount, and log each decision. See [loan approval workflow and roles](https://www.loantabs.com/resources/loan-approval-workflow-and-roles/).

##### 8. Document and disburse

Prepare and sign the agreement, then disburse the funds and record the disbursement. See [what to include in a loan agreement](https://www.loantabs.com/resources/loan-agreement-what-to-include/).

##### 9. Service

From here the loan is serviced: payments, receipts, statements and follow-up. See [mobile money loan repayments](https://www.loantabs.com/resources/mobile-money-loan-repayments/) for recording payments made electronically.

#### What to look for in online loan application software

- **A structured application record** with consistent fields and custom fields.
- **Document attachment** on the borrower and the loan.
- **A schedule preview** before saving, and drafts for incomplete applications.
- **Approval rules** by role, with a log.
- **Guarantor and collateral records.**
- **Import** of applications or borrowers you already hold.
- **Clear statements of scope**: is the product staff-side, borrower-facing or both?
- **Security**: role-based access, data separation, secure storage.
- **Integrations**: ID verification, credit bureaus, payment channels, if you need them. Ask; do not assume.

See the [online loan application software](https://www.loantabs.com/online-loan-application-software/) page for how LoanTabs handles the staff-side model.

#### Designing the application form

A good form asks for what you need to decide, and no more. Group the fields so staff or borrowers can complete it quickly:

- **About the borrower:** name, ID type and number, date of birth, phone, address, and whether they are a person or a business.
- **About the request:** amount, term, purpose and the loan product.
- **About income and obligations:** main income source, other income, existing loans, household commitments.
- **About security:** guarantor details, collateral description and value.
- **References:** at least one or two contacts.
- **Consents:** to data processing, to verification checks and to contact.
- **Custom fields** for anything your policy adds, such as employer, group name or branch.

Make required fields required, use dropdowns for standard answers, and keep free text for genuine explanations. Every optional field you add slows applications and lowers completion.

#### Speed against quality

Digital lending invites a race to instant decisions. Speed helps borrowers and can win business, but it is dangerous when it means skipping verification or affordability checks. A sensible balance:

- **Standardize the easy cases.** Small, repeat loans to good borrowers can move quickly under clear rules.
- **Slow down the risky ones.** First-time borrowers, larger amounts and unusual requests deserve more checks.
- **Measure time to decision and early arrears together.** If decisions are fast and first-installment defaults rise, you are too fast.

#### Communicating decisions

Tell applicants what happens next, at each stage: received, under review, more documents needed, approved, declined. When you decline a loan, say so promptly and, where the law requires or good practice suggests, give the reason in general terms. Record all communications on the application. It reduces disputes and keeps staff consistent.

#### A typical timeline

| Stage | Staff-side, in person | Borrower-side, remote |
| --- | --- | --- |
| Application captured | During the visit | When the borrower submits |
| Documents checked | Same day | Same day to two days, with follow-up for missing items |
| Verification | Same day, plus reference calls | Same day to several days |
| Approval | Within the branch limits, often same day | Automated for small loans or by an approver |
| Disbursement | On signing | After acceptance and agreement |

These are examples, not benchmarks. Your own numbers should come from measuring the process.

#### Data protection and security checklist

Applications hold identity documents, phone numbers, income details and often photographs. Treat that data with care:

- Collect only what you need, and tell borrowers how it will be used.
- Restrict access by role, and remove access when staff leave.
- Store documents in the system, not in personal phones or messaging apps.
- Use a system that separates customers' data and encrypts it in transit and at rest.
- Keep records for the period required, then delete them securely.
- Have a plan for a data breach, including who to tell.
- Check your country's data protection law and any lending-specific rules.

#### A sample staff-side application, start to finish

To picture the staff-side model, follow one application at a branch. A market trader walks in asking for 800. The loan officer opens the system, creates the borrower with name, ID number and phone, and attaches a photo of the ID and a note of the trader's stock. She chooses the working-capital product, enters 800 over 6 months, and shows the trader the schedule on screen: six monthly installments and the total to repay. Satisfied, the trader agrees; the officer records a guarantor and attaches the guarantor's ID. She saves the loan and sends it for approval. The branch manager reviews the documents and the schedule, approves it within his limit, and the cashier disburses the funds and records the disbursement. The whole process takes place in one record, and nobody has to search for a paper form. Each step, and who took it, is logged.

#### Questions lenders ask when they go digital

**Do we need to change our loan products?** Not necessarily. Digital capture works with your existing products, but it is a good moment to check that the terms, fees and schedules are clear enough to show a borrower on a screen.

**Will staff resist?** Some will, especially if the old process gave them discretion that a structured form takes away. Involve them early, show that the system saves them writing, and keep the fields to what is actually needed.

**What about borrowers who cannot read the screen?** Read the schedule aloud, in their language, and note that you did. Digital records do not remove the duty to make sure the borrower understands.

**Can we start with paper and go digital later?** Yes, and many do. Keep the paper consistent, so that it can be imported later, and move the borrower and loan records first.

#### Build or buy?

Building your own application system is tempting for technical founders, and it is usually a mistake for a small lender. The application form is the easy 10%; the calculations, approvals, accounting, reports, security and maintenance are the other 90%. Buying a system lets you focus on lending. Build only when your process is genuinely unusual and you have the team to maintain it for years.

#### Risks of digital applications

- **Identity fraud.** Fake or stolen identities are more common online. Use strong verification.
- **Over-lending.** Fast approvals can tempt lenders to skip affordability checks.
- **Data protection.** Applications hold sensitive personal and financial data. Comply with data protection law, restrict access and secure storage.
- **Exclusion.** Not every borrower has a smartphone, data or confidence online. Keep an assisted channel.
- **Complacency about documents.** A photo of an ID is not verification.
- **Disputes without evidence.** Keep a log of what the borrower saw and agreed.

#### Consent and disclosure

Before a borrower submits an application, make sure they can see the key terms: the amount, interest, fees, total to repay and penalties. Record their consent to the processing of their data and to any checks you will run, such as credit bureau queries. Rules vary by country, so confirm what applies to you.

#### Measuring the process

Useful measures: applications received and approved, time from application to decision, time to disbursement, rejection reasons, incomplete applications, and early arrears on new loans, since early defaults show weak verification or underwriting. Review them regularly.

#### Moving from paper to digital

If you have been taking applications on paper, move in stages: enter new applications into the system, import your existing borrowers and loans, and keep paper for signed agreements at first. See [how to migrate your loans from Excel](https://www.loantabs.com/resources/migrate-loans-from-excel/) and [cloud-based loan management software](https://www.loantabs.com/resources/cloud-based-loan-management-software/).

#### What LoanTabs provides

LoanTabs supports the **staff-side** model. Staff capture the borrower (a person or a business) with ID number, custom fields and attached documents, choose a loan product, preview the schedule live, save drafts, attach guarantors and collateral, and route the loan through per-branch approval rules with 11 staff roles before disbursement. Admins or branch managers of small teams can create and disburse in one step. The AI assistant can prepare a loan from a description, with your confirmation. **A borrower self-service portal is planned but is not available yet**, and LoanTabs does not perform automated identity verification, run credit-bureau checks or provide e-signature. It needs an internet connection and has no offline mode. See [loan origination](https://www.loantabs.com/features/loan-origination/) and [online loan application software](https://www.loantabs.com/online-loan-application-software/).

#### FAQ

##### What is online loan application software?

Software that captures loan applications digitally and moves them through review, approval and disbursement. It can be used by staff, by borrowers or both.

##### Can borrowers apply online with LoanTabs?

Not yet. Staff enter and process applications online. A borrower self-service portal is planned but is not available.

##### How do I verify a borrower's identity online?

By checking ID documents and details for consistency, calling contacts, and, for remote applications, using a specialist identity verification service. LoanTabs records the evidence but does not verify identity itself.

##### Is it safe to store applications digitally?

It can be safer than paper if access is controlled and the data is protected. Choose a system with roles, audit trails and clear data-handling terms.

##### Do I need a mobile app to take online applications?

No. A staff-side system used through a web browser is enough for many lenders.

:::cta
Take loan applications online with schedule previews, approvals and documents in one record.
:::

### Peer-to-peer lending vs private lending: how they differ

URL: https://www.loantabs.com/resources/peer-to-peer-vs-private-lending/
Published: 2026-09-30

:::answer
Peer-to-peer (P2P) lending uses an online platform to match individual or institutional investors with borrowers, and the platform manages the process. Private lending is a direct arrangement where a person or company lends its own money to a borrower, without a marketplace. Risk, regulation and the work required differ between them.
:::

"Alternative lending" covers several models that sit outside traditional bank lending. Two of the most discussed are peer-to-peer lending and private lending. They are often mixed up, and they are very different businesses with different obligations. This article explains how each works and what running either involves. It is an explainer, not advice, and both are regulated in many places, so check local rules before you lend or invest.

#### What is peer-to-peer lending?

Peer-to-peer lending (P2P, marketplace or crowdlending) uses an online platform to connect people who want to borrow with people or institutions who want to lend.

Typical features:

- **A platform** takes applications, assesses borrowers, sets or suggests rates and displays loans to investors.
- **Many investors fund each loan**, each taking a small portion, which spreads risk.
- **The platform services the loans**: collecting repayments, distributing them to investors, and handling arrears.
- **The platform earns fees**, such as origination fees from borrowers and servicing fees from investors.
- **Investors bear the credit risk**, usually without a guarantee from the platform.

Regulation varies widely, and P2P platforms are subject to licensing, investor-protection and consumer-credit rules in many countries. Some markets have restricted or banned them.

#### What is private lending?

Private lending is a direct loan from a person or private company using its own money, without an intermediary marketplace.

Typical features:

- **The lender is the source of funds**, and takes all the credit risk.
- **Terms are negotiated directly**, often based on trust, relationships or security.
- **Loans can be secured** by property, vehicles or other assets, or unsecured.
- **The lender manages everything**: assessment, documents, collections.
- **Examples** include a business lending to customers, a money lender serving a community, or a family investment office funding short-term loans.

Private lending is regulated in most countries when done as a business: licensing, interest limits and disclosure rules apply. Lending occasionally to friends and relatives may be treated differently, but rules vary.

#### Side by side

| | Peer-to-peer lending | Private lending |
| --- | --- | --- |
| Who provides the money | Many investors, via a platform | A single lender or company |
| Intermediary | Online platform | None |
| Who bears the risk | Investors, spread across loans | The lender |
| Who manages the loan | The platform | The lender |
| Pricing | Often set by the platform or by auction | Negotiated |
| Scale | Can be large | Usually small to medium |
| Borrower reach | Broad, digital | Local or relationship-based |
| Typical regulation | Platform licensing, investor protection | Money lending or consumer credit law |
| Main costs | Platform fees | Lender's own operating costs |
| Main technology need | Marketplace, verification, payments | Loan management and records |

#### Who takes what risk?

In P2P, the borrower's default is borne by investors, so the platform's job is to assess, price and diversify. Poor assessment harms investors and the platform's reputation. In private lending, the lender's own capital is on the line, so security, documentation and collections matter directly to survival.

#### What a private lender needs

If you lend privately as a business, treat it as one:

1. **Check the law**: licensing, interest limits, disclosure and collection rules. See [how to start a money lending business](https://www.loantabs.com/resources/how-to-start-a-money-lending-business/).
2. **Verify borrowers.** See the [KYC checklist for small lenders](https://www.loantabs.com/resources/kyc-checklist-for-small-lenders/).
3. **Set terms in writing.** See [what to include in a loan agreement](https://www.loantabs.com/resources/loan-agreement-what-to-include/).
4. **Take appropriate security.** See [collateral vs guarantor](https://www.loantabs.com/resources/collateral-vs-guarantor/).
5. **Keep accurate records and a schedule for every loan.**
6. **Track arrears and act early.** See the [collections guide](https://www.loantabs.com/resources/loan-collections-and-arrears-guide/).
7. **Keep separate books** and report as required.
8. **Use software** once you have more than a handful of loans.

#### What a platform operator needs

Running a P2P platform is a larger undertaking: a licence, investor protections, strong verification and credit assessment, secure payment handling, segregated client funds, complaints procedures, disclosure of risk, and technology to match, fund, service and report on loans. Most small lenders do not need this, and it is far more heavily regulated than private lending.

#### Which is right for you?

- **You have your own capital and want to lend to a defined group of borrowers:** private lending, run properly, with loan management software.
- **You want to invest without managing loans:** P2P or other funds, accepting the platform and credit risk.
- **You want to borrow:** compare the total cost, including fees, and read the terms.
- **You want to build a marketplace:** take legal advice first; the regulatory burden is significant.

#### Where LoanTabs fits

LoanTabs is loan management software for lenders who manage their own loan book: small lenders, money lenders, MFIs and SACCOs. It suits **private lenders** who need schedules, approvals, receipts, accounting and reports. It is not a P2P marketplace: it has no investor accounts, investor payouts or public borrower-facing application channel. See [loan software for money lenders](https://www.loantabs.com/solutions/money-lenders/) and [loan software for small business](https://www.loantabs.com/loan-management-software-for-small-business/).

#### FAQ

##### What is the difference between P2P lending and private lending?

P2P lending uses a platform to match many investors with borrowers, and the platform manages the loans. Private lending is a direct loan from one lender's own funds.

##### Is private lending legal?

In most places lending as a business requires a licence or registration and compliance with interest and disclosure rules. Confirm the law where you operate.

##### Who bears the risk in peer-to-peer lending?

Investors, who fund loans and take the credit risk, usually without a guarantee from the platform.

##### Can a private lender use loan management software?

Yes. Software helps keep accurate schedules, records and reports as the number of loans grows.

##### Does LoanTabs run peer-to-peer lending?

No. LoanTabs is for managing your own loan book, not for investor marketplaces.

:::cta
Manage a private lending book with schedules, approvals, receipts and reports.
:::

### SACCO management software: what to look for and what it should do

URL: https://www.loantabs.com/resources/sacco-management-software-guide/
Published: 2026-09-30

:::answer
SACCO management software handles a cooperative's whole operation: member records, savings accounts, share capital, loans, dividends, accounting, reports and governance records such as AGM minutes. Many products cover loans well but treat member savings and shares as extras, so check exactly which SACCO features are standard and which are custom builds.
:::

A SACCO is not just a lender. It is a member-owned cooperative, and its software has to reflect that: who the members are, what each has saved and invested, what they may borrow, and what the cooperative owes them at year-end. Generic loan software handles the loan book but often stops there. This guide explains what SACCO management software should do, the questions to ask, and how to avoid buying the wrong system.

If you are comparing SACCOs and microfinance institutions, start with [SACCO vs MFI](https://www.loantabs.com/resources/sacco-vs-mfi-difference/).

#### What a SACCO needs to manage

##### Members

- A **member register** with membership numbers, personal details, next of kin and status.
- **Onboarding**: admission fee, initial shares, approval.
- **Membership changes**: exit, transfer, death, dormancy.

##### Savings

- **Savings accounts** by type: compulsory savings, voluntary savings, fixed deposits.
- **Deposits and withdrawals**, with receipts and limits.
- **Interest on savings**, calculated and posted.

##### Share capital

- **Shares** bought by members, with the value per share.
- **Share transactions**: purchases, transfers, redemptions.
- **A share register** that shows each member's holding.

##### Loans

- **Loan products**: development, emergency, school fees, business, salary advance.
- **Loan limits linked to savings and shares**: for example, up to three times savings.
- **Guarantors**: fellow members guaranteeing each other's loans.
- **Schedules, payments, arrears and portfolio reporting.**

##### Dividends and interest

- **Dividend calculation** based on shares held over the year, once the AGM approves a rate.
- **Interest on savings**, paid according to the rules.
- **Posting** to member accounts.

##### Governance

- **AGM and board meeting records**: attendance, resolutions, minutes.
- **Committee records** for credit, supervisory and other committees.
- **Notices and reports** to members.

##### Accounting and reporting

- **A ledger** that records all of the above.
- **Financial statements** and reports for members, the board and the regulator.
- **Portfolio quality**: PAR, aging, provisions.

#### Why generic loan software falls short

Most loan management systems begin at "a borrower asks for a loan." A SACCO begins earlier, with a member who owns shares, saves regularly and is entitled to vote, and it ends later, with dividends and AGM resolutions. If the software does not model members, savings and shares, you end up running them in spreadsheets alongside the loan system, and the two never quite agree.

#### Features to look for

| Area | What to check |
| --- | --- |
| Member management | Register, IDs, next of kin, status, history |
| Savings | Multiple account types, deposits, withdrawals, interest |
| Shares | Share register, purchases, transfers, value |
| Loans | Products, limits linked to savings, guarantors, schedules |
| Dividends | Calculation on shares, AGM rate, posting |
| Governance | AGM and board records |
| Accounting | Double-entry ledger, period close, statements |
| Reports | Member statements, PAR, aging, provisions, regulator formats |
| Roles | Cashier, credit committee, accountant, auditor |
| Import | Bringing members, balances and loans across |
| Security and support | Access control, data separation, help when needed |

#### Questions to ask a vendor

1. **Which of these are standard and which are custom?** Ask for a written list.
2. **Show me a member with shares, savings and a loan on one screen.**
3. **How is a dividend calculated and posted?** Ask them to run one.
4. **How do loan limits relate to savings and shares?**
5. **Can I produce a member statement?**
6. **What do you provide for AGM records?**
7. **How do you handle a member's exit or death?**
8. **What regulator or cooperative formats do you support?**
9. **What is included in the price and what is extra?**
10. **What does migration of existing member balances involve?**

#### Custom builds vs standard features

Because SACCO needs differ by country and by cooperative, vendors sometimes deliver them as custom work. That is not automatically bad: a build fitted to your bylaws can be better than a generic module. But it changes the questions. Ask about scope, cost, timeline, who maintains it, what happens on upgrades, and whether the result is documented. Get the scope in writing.

#### Governance and bylaws

SACCO rules are set by your bylaws and cooperative law: who may join, share values, borrowing limits, dividend policy, meeting procedures. Software should be configured to follow these, not the other way round. When you implement a system, document the rules first, and check the configuration against them.

#### Implementation tips

- **Start with the register.** Clean your member list, share balances and savings balances first.
- **Reconcile opening balances** to your last audited accounts.
- **Migrate loans** with their current balances and schedules. See [how to migrate your loans from Excel](https://www.loantabs.com/resources/migrate-loans-from-excel/).
- **Train staff and committee members** who will use the reports.
- **Run in parallel** for a cycle, then cut over.
- **Plan the first year-end** so dividends and reports run smoothly.

#### Common mistakes

- **Buying loan software and assuming savings and shares are included.**
- **Not reconciling opening balances.**
- **Configuring software before writing down the bylaws' rules.**
- **Ignoring governance records.**
- **Underestimating data clean-up.**
- **No plan for the AGM season.**

#### What LoanTabs offers a SACCO

LoanTabs gives a SACCO a strong loan management core: loan products with seven interest methods, approvals by role, borrower and guarantor records, payments with receipts and allocation, portfolio-at-risk, aging and provisioning, a double-entry ledger with period close, and 28 reports. **Member savings, share capital, dividends, AGM and board records, borrower groups and payroll are not part of the standard product; they are delivered as custom implementations on the Custom plan, scoped to your bylaws.** If you need those, contact sales to define the scope before you commit. Until then, a SACCO can run its loan book on LoanTabs. See the [SACCO solutions page](https://www.loantabs.com/solutions/saccos/) and the [SACCO and group lending features page](https://www.loantabs.com/features/sacco/).

#### FAQ

##### What is SACCO management software?

Software that manages a savings and credit cooperative: members, savings, shares, loans, dividends, accounting, reports and governance records.

##### What features should SACCO software have?

Member register, savings accounts, share capital, loans linked to savings and shares, guarantors, dividend calculation, accounting, reports and AGM records.

##### Can I use general loan software for a SACCO?

For the loan book, yes. For members, savings, shares and dividends, you need a system that supports them, either as standard features or as a custom build.

##### Does LoanTabs handle SACCO savings and dividends?

Not as standard features. They are delivered as custom implementations on the Custom plan. LoanTabs handles the loan book, accounting and reporting as standard.

##### How long does it take to implement SACCO software?

It depends on the size of your membership, the quality of your data and the scope of customization. Plan for reconciliation of opening balances and a parallel run.

:::cta
Talk to sales about SACCO features built to your bylaws, on top of LoanTabs' loan management core.
:::

### Village savings groups vs SACCOs vs MFIs: how they differ

URL: https://www.loantabs.com/resources/village-savings-groups-vs-saccos-vs-mfis/
Published: 2026-09-30

:::answer
Village savings and loan associations (VSLAs) are small, informal, self-managed groups that save together and lend to members, then share out at the end of a cycle. SACCOs are formal member-owned cooperatives with registered shares and savings. MFIs are institutions that lend to clients. They differ in size, formality, ownership and regulation.
:::

Three kinds of community-based finance are often confused: village savings and loan associations, savings and credit cooperatives, and microfinance institutions. They serve overlapping communities but work differently, and the right one, or the right path from one to the next, depends on the members' needs and the local rules. This overview explains the differences, and the software implications. Definitions and regulation vary by country.

#### Village savings and loan associations (VSLAs)

A VSLA (also called a savings group, ROSCA-like group or self-help group) is a small group, usually 15 to 30 members, that meets regularly to save and lend from its own pooled funds.

- **Self-managed.** Members run everything: they keep the books, hold the cash box and make decisions.
- **Simple rules.** Members buy shares at a set price at each meeting, and borrow from the fund, often up to a multiple of their savings.
- **Cycle.** After a fixed period, usually 9 to 12 months, the fund and interest earned are shared out among members in proportion to their savings, and a new cycle starts.
- **Informal.** Usually unregistered or lightly registered, with little external funding.
- **Small scale.** Balances are small, and records are kept in books or notebooks.

VSLAs are a first step in financial inclusion. They are cheap to run, accessible to people with irregular incomes, and build habits of saving.

#### SACCOs

A savings and credit cooperative society is a formally registered, member-owned financial cooperative.

- **Registered and regulated.** Under cooperative law, with bylaws, an elected board and committees, and audits.
- **Larger and more formal.** From a few hundred to tens of thousands of members.
- **Shares and savings.** Members buy shares and save, and borrow from the pool.
- **Professional operations.** Staff or managers, ledgers and reports, often software.
- **Democratic governance.** One member, one vote, AGMs, and surplus shared through dividends and interest.

See [SACCO vs MFI](https://www.loantabs.com/resources/sacco-vs-mfi-difference/) and [how SACCO share capital and dividends work](https://www.loantabs.com/resources/how-sacco-share-capital-and-dividends-work/).

#### Microfinance institutions (MFIs)

An MFI is an institution that provides financial services, mainly loans, to low-income clients.

- **Institutional.** Owned by shareholders, an NGO or a non-profit, not by the borrowers.
- **External funding.** Donors, investors, banks or, if licensed, deposits.
- **Lending methods.** Individual loans, group lending, village banking.
- **Professional management.** Branches, officers and systems.
- **Regulated.** Under microfinance, banking or non-profit rules, depending on the country.

#### The three side by side

| | VSLA / savings group | SACCO | MFI |
| --- | --- | --- | --- |
| Ownership | The members | The members | Shareholders, NGO or trustees |
| Size | 15 to 30 members | Hundreds to tens of thousands | Thousands to hundreds of thousands of clients |
| Funding | Members' own savings | Members' shares and savings | Donors, investors, banks, sometimes deposits |
| Formality | Informal, self-managed | Registered cooperative | Registered institution |
| Management | Members | Elected board and staff | Professional management |
| Records | Notebooks, simple ledgers | Ledgers and software | Management information systems |
| Regulation | Light or none | Cooperative law | Microfinance or banking law |
| Returns | Share-out at cycle end | Dividends and interest | Retained, distributed or reinvested |
| Best for | Building saving habits and small emergency loans | Long-term member-owned finance | Reaching many clients with credit |

#### How they connect

The three are not rivals so much as stages and neighbours. A well-run VSLA may grow into a SACCO, or become a borrower group for an MFI. MFIs sometimes work with savings groups as delivery channels, and SACCOs sometimes bank with, or borrow from, MFIs or banks. Understanding where a group sits helps you choose tools and partners that match its size and formality.

#### Choosing the right model

- **If members want to build savings and borrow small amounts among themselves,** a VSLA is often enough.
- **If members want a formal, lasting, member-owned institution with larger loans,** a SACCO fits.
- **If the goal is to lend to many people who are not members, funded from outside,** an MFI is the model.

Consider the legal position, the skills available to manage money, and the risks. As institutions grow, they need stronger controls, records and software.

#### Software needs by model

- **VSLAs** rarely need software: a notebook or simple spreadsheet is typical. Mobile apps for savings groups exist for some.
- **SACCOs** need member registers, savings, shares, loans, dividends, accounting and governance records. See [SACCO management software](https://www.loantabs.com/resources/sacco-management-software-guide/).
- **MFIs** need loan management for high volumes, group lending, branches, portfolio reporting and funder reports. See [microfinance software](https://www.loantabs.com/resources/microfinance-software-guide/).

#### Where LoanTabs fits

LoanTabs is loan management software for small lenders, MFIs and SACCOs. It manages the loan lifecycle, accounting and reporting as standard. It is not designed for informal savings groups; those needing SACCO-style member savings, shares and dividends, or group lending, can have them delivered as custom implementations on the Custom plan. See the [solutions](https://www.loantabs.com/solutions/) overview.

#### FAQ

##### What is a VSLA?

A village savings and loan association: a small, self-managed group that saves together, lends to members from the pool and shares out at the end of a cycle.

##### Is a SACCO the same as a savings group?

No. A SACCO is a formal, registered cooperative with governance, shares, savings and lending; a savings group is usually small and informal.

##### What is the difference between an MFI and a SACCO?

A SACCO is owned by its members and lends to them from their savings; an MFI lends to clients and is owned by shareholders or a non-profit. See [SACCO vs MFI](https://www.loantabs.com/resources/sacco-vs-mfi-difference/).

##### Can a savings group become a SACCO?

Often yes, when it grows and meets the legal requirements. Check your country's cooperative law.

##### Do village savings groups need software?

Usually not at the start. As they grow, they need better records, and a SACCO needs a proper system.

:::cta
Run loans for your MFI or SACCO on LoanTabs: 30-day free trial.
:::

### What is loan management software? A complete guide for lenders

URL: https://www.loantabs.com/resources/what-is-loan-management-software/
Published: 2026-09-30

:::answer
Loan management software is a system that records and automates a loan from application to closure: approvals, disbursement, repayment schedules, interest, fees, receipts, accounting and reports. Lenders use it instead of spreadsheets to keep accurate records, control who can approve loans, and see portfolio risk at a glance.
:::

If you lend money as a business, you already run a loan management process. Someone takes an application, someone approves it, money goes out, repayments come in, and at the end of the month somebody works out who is late and what the books say. Loan management software (also called a loan management system or LMS) does that work in one place, with rules, records and reports built in, instead of in notebooks, spreadsheets and messages.

This guide explains what loan management software is, what it does at each stage of a loan, who uses it, which features matter, what it costs, and how to choose. It is written for small lenders, money lenders, microfinance institutions (MFIs) and SACCOs, though most of it applies to any lender.

#### What does loan management software do?

Think of a loan as a lifecycle. The software supports every stage:

| Stage | What happens | What the software does |
| --- | --- | --- |
| Application | A borrower asks for a loan | Captures borrower details, documents, guarantors and collateral in one record |
| Approval | The right people review and decide | Routes the loan through approval rules by role and logs each decision |
| Disbursement | Money is released | Records the disbursement against the loan's terms and posts it to the accounts |
| Servicing | The borrower repays over time | Builds the repayment schedule, records payments, applies them in the right order, prints receipts and statements |
| Collections | Some loans go late | Lists overdue loans, ages them and measures portfolio at risk |
| Accounting | Money movements are recorded | Posts loans, payments and fees to a ledger and produces financial statements |
| Reporting | Management reviews the business | Provides portfolio, income and risk reports |
| Closure | The loan is repaid, closed or written off | Records the outcome and keeps the history |

A good system holds all of this in one record per loan, so the schedule, the payments, the documents and the accounting all agree.

#### Loan management software vs related tools

The terms overlap, and it helps to know what each one covers:

- **Loan origination software (LOS)** covers the front end: applications, underwriting and approval. Read more in [loan origination vs loan servicing](https://www.loantabs.com/resources/loan-origination-vs-loan-servicing/).
- **Loan servicing software** covers the back end: payments, statements, collections and account maintenance.
- **Loan management software** usually means both, often with accounting and reports, as one system. That is what most small lenders need.
- **Core banking systems** run a full bank: deposits, payments and a general ledger for regulated banks. They are far more than a small lender needs.
- **Accounting software** keeps the books but does not know about loan schedules, interest methods or arrears.
- **Spreadsheets** can do any of this in theory, but they depend on the person who built them and break as volume grows.
- **CRMs** track relationships and pipelines, not loan balances.

#### Who uses loan management software?

- **Small lenders and money lenders** replacing spreadsheets with a system that calculates schedules and reports without a finance team. See [loan software for small business](https://www.loantabs.com/loan-management-software-for-small-business/).
- **Microfinance institutions** running several branches under the same policy, with staff roles and portfolio-at-risk reporting. See [loan software for MFIs](https://www.loantabs.com/solutions/microfinance-institutions/).
- **SACCOs and cooperatives** managing member loans, and sometimes needing member savings and share capital as well.
- **Personal and installment lenders** who need reliable schedules and fast follow-up on arrears. See [installment loan software](https://www.loantabs.com/solutions/personal-and-installment-lenders/).
- **Lending departments** inside larger businesses that make loans to customers or staff.

#### The features that matter

A full comparison is in our [loan management software features checklist](https://www.loantabs.com/resources/loan-management-software-features-checklist/), but these ten are the core:

1. **Configurable loan products.** Interest method, fees, penalties, terms and repayment frequency set per product.
2. **Accurate repayment schedules.** Generated from the product and updated as payments arrive.
3. **Approval workflow and roles.** So a loan cannot be disbursed without the right sign-off.
4. **Borrower, guarantor and collateral records.** The evidence kept with the loan.
5. **Payments, receipts and statements.** With a defined allocation order for partial payments.
6. **Accounting.** A double-entry ledger that loans and payments post to.
7. **Portfolio reports.** Portfolio at risk, aging, provisions, collections and income.
8. **Import and export.** To bring existing loans in and take data out.
9. **Security and access control.** Role-based access and clear data isolation.
10. **Support and documentation.** So problems get solved.

#### What are the benefits?

- **Accuracy.** Calculations live in the system, not in cells that can be overwritten, so balances and schedules are right and consistent.
- **Time.** Recording a payment updates the schedule, the receipt, the ledger and the reports in one step.
- **Control.** Roles and approval rules mean nobody disburses or edits what they should not.
- **Visibility.** You can see portfolio at risk, overdue loans and income without building a report.
- **Credibility.** Professional receipts and statements, and a clean audit trail, matter to borrowers, funders and auditors.
- **Scale.** Adding a branch or a staff member does not multiply the chaos.

#### What software does not do

It is worth being clear about limits, because unrealistic expectations cause more failed implementations than missing features.

- **It does not make you compliant.** Licensing, interest caps, disclosure and consumer-protection rules are set by law where you operate. Software helps you follow your own procedures and evidence them.
- **It does not replace credit judgement.** It records the decision and the evidence; your people still decide who gets a loan.
- **It does not collect for you.** Collections reports tell you who is late. Someone still has to follow up.
- **It cannot fix bad data.** If your existing records are wrong, importing them makes the mistakes visible. That is useful, but plan for the clean-up.

#### Cloud or installed?

Most modern loan management software is delivered online: you sign in through a browser, and the provider hosts and maintains the system. The alternative is software installed on your own computer or server. Cloud software removes the maintenance burden and lets every branch share one record, at the cost of needing an internet connection. Our guide to [cloud-based loan management software](https://www.loantabs.com/resources/cloud-based-loan-management-software/) covers the questions to ask about hosting, security and exit.

#### What does loan management software cost?

Pricing models vary: per user, per branch, per loan, a flat subscription, or a licence plus maintenance. Free spreadsheet templates cost nothing to buy but plenty in time and errors. The full breakdown, including hidden costs to watch for, is in our guide to [loan management software pricing](https://www.loantabs.com/resources/loan-management-software-pricing/). If you are weighing free options, read [free loan management software](https://www.loantabs.com/resources/free-loan-management-software/) first.

#### How to choose

Write down your loan products and volumes, separate must-haves from nice-to-haves, trial the software with your own data, and check the reports and the exit route. The [step-by-step buyer's guide](https://www.loantabs.com/resources/how-to-choose-loan-management-software/) gives you a checklist and a demo script.

#### Moving from spreadsheets

Most lenders arrive at loan management software with an existing loan book in Excel. The move is easier than it sounds if you clean the data first, import a sample, reconcile it against your old records, and run in parallel briefly. See [how to migrate your loans from Excel](https://www.loantabs.com/resources/migrate-loans-from-excel/).

#### Where does AI fit in?

Newer loan management systems add AI assistants that answer questions about the portfolio in plain English or prepare forms from a description. Used carefully, that saves time; used carelessly, it invents numbers. The important questions are whether every figure is checked against your data and whether any change requires human confirmation. Our article on [AI in loan management](https://www.loantabs.com/resources/ai-in-loan-management/) explains what to look for.

#### A week with and without loan management software

The clearest way to see what the software does is to follow one ordinary week.

| Task | With spreadsheets and paper | With loan management software |
| --- | --- | --- |
| Recording a repayment | Find the row, type the payment, recalculate the balance, write a receipt by hand | Record the payment; the balance, schedule, ledger and receipt update together |
| Finding who is late | Filter columns, compare due dates with today, hope the formulas are right | Open the overdue worklist |
| Answering "how much do I owe?" | Recalculate interest to date, argue over the total | Print the statement showing schedule and payment history |
| Approving a loan | Ask around, note it in a chat or a margin | Route it through the approval rules; the decision is logged |
| Month-end reports | A day or two of building and checking | Open the reports and export them |
| Adding a second person | Copy the file, hope nobody overwrites anything | Add a user with a role and permissions |
| Handing over to an auditor | Assemble files and explain the formulas | Give access to a read-only role and the exported reports |

None of this is exotic. It is the same work, with the arithmetic, the record-keeping and the reporting done by the system.

#### Signs it is time to switch

Most lenders do not adopt software on day one. They switch when one of these appears:

- Recording payments and recalculating balances takes hours each week.
- You have found a wrong balance or a formula error after the fact.
- A borrower has disputed a balance and you could not prove yours quickly.
- A second person needs to work on the loan book, or you are opening a second branch.
- A funder, bank, regulator or auditor wants reports you cannot produce quickly.
- You cannot say what share of your portfolio is late without a day of work.
- You are worried about what happens if the one person who understands the spreadsheet is unavailable.

If two or more of these are true, the cost of staying on spreadsheets is probably higher than the cost of a subscription.

#### Myths about loan management software

- **"It is only for big lenders."** Many systems, including LoanTabs, are built for one-person lenders and small teams.
- **"It will run the business for me."** It records and calculates; your people still lend, collect and decide.
- **"Migration will lose my data."** A planned import, checked against your old records, does not. See [how to migrate your loans from Excel](https://www.loantabs.com/resources/migrate-loans-from-excel/).
- **"Cloud means insecure."** Security depends on how the vendor separates customers, encrypts data and controls access, not on where the servers are. Ask specific questions.
- **"I need every feature."** You need the ones on your must-have list. Extra features mostly add cost and clutter.
- **"It makes me compliant."** It helps you follow and evidence your own procedures. Compliance is defined by law where you operate.

#### What to prepare before you start

You will get more from any system if you arrive prepared. Before a trial, gather your loan products (interest method, fees, terms, frequency), a sample of 10 to 20 real loans including awkward ones, your list of staff and the role each should have, and the reports you must produce. With those in hand you can test the software against your real work in an afternoon, instead of judging it on a generic demo.

#### Loan management software from LoanTabs

LoanTabs is cloud-based loan management software for small lenders, MFIs and SACCOs. It covers the whole lifecycle in one online system:

- [Loan origination](https://www.loantabs.com/features/loan-origination/) with configurable products, seven interest methods and a live schedule preview.
- [Loan servicing](https://www.loantabs.com/features/loan-servicing/): repayments, PDF receipts, statements, penalties and write-offs.
- [Collections and arrears reports](https://www.loantabs.com/features/delinquency-and-collections-reports/): delinquency worklist, daily collection sheet, portfolio at risk, aging and provisions.
- [Accounting](https://www.loantabs.com/features/accounting/): a double-entry ledger with period close.
- 28 [reports](https://www.loantabs.com/features/reporting/) exportable to CSV and PDF.
- An [AI portfolio assistant](https://www.loantabs.com/features/ai-assistant/) that shows its sources and needs your confirmation before changing anything.

It starts with a 30-day free trial and no credit card. See the [overview](https://www.loantabs.com/) or the [pricing](https://www.loantabs.com/pricing/) page.

#### FAQ

##### What is a loan management system?

A loan management system is the same thing as loan management software: a system of record that handles a loan from application to closure, usually with accounting and reports.

##### What is the difference between loan management software and loan origination software?

Origination software handles applications and approval up to disbursement. Loan management software usually covers origination and servicing together, plus accounting and reporting.

##### Do I need loan management software if I only have a few loans?

Not necessarily. A spreadsheet can cope with a handful of loans. Most lenders switch when recalculating balances, chasing late payments or producing reports starts to take real time, or when a second person needs access.

##### Is loan management software secure?

It depends on the vendor. Ask where the data is hosted, how customers are separated, how access is controlled and what happens to your data if you leave.

##### Can borrowers use loan management software directly?

Some products offer a borrower portal. LoanTabs is used by lender staff today; a borrower self-service portal is planned but not yet available.

##### How long does it take to start?

Setup mostly depends on how much data you bring across. A small lender can be working within days; a multi-branch institution should plan a longer rollout.

:::cta
Try loan management software on your own loans: 30-day free trial, no credit card.
:::

### What is portfolio at risk (PAR)? Formula, PAR30 vs PAR90 and examples

URL: https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/
Published: 2026-09-30

:::answer
Portfolio at risk (PAR) is the share of a loan portfolio that is overdue beyond a set number of days. The formula is the outstanding balance of loans more than N days late divided by the total outstanding portfolio. PAR30 uses 30 days, PAR90 uses 90. It is the standard measure of loan quality.
:::

If you run a loan book, one number tells you more than any other about its health: portfolio at risk. Funders ask for it, regulators watch it, and lenders who track it catch problems while they are still small. This guide explains what PAR means, how to calculate it, how PAR30 differs from PAR90, and how to read the result.

#### The PAR formula

**PAR(N) = Outstanding balance of loans with any installment more than N days past due ÷ Total outstanding portfolio**

Two details matter:

1. **The whole outstanding balance counts, not just the overdue installment.** If a loan of 1,000 has 800 still outstanding and one installment of 100 is 45 days late, all 800 goes into PAR30 (and PAR45), not just the 100. The logic: the whole loan is at risk once any part is seriously late.
2. **Measure from the oldest unpaid installment.** Days past due are counted from the due date of the earliest installment that has not been paid in full. See [days past due and loan aging](https://www.loantabs.com/resources/days-past-due-and-loan-aging/).

#### A worked example

A lender has 500,000 in outstanding loans, broken down by days past due:

| Days past due | Outstanding balance |
| --- | --- |
| Current (0) | 430,000 |
| 1 to 30 | 30,000 |
| 31 to 60 | 20,000 |
| 61 to 90 | 8,000 |
| 91 to 180 | 7,000 |
| Over 180 | 5,000 |
| **Total** | **500,000** |

- **PAR1** (any overdue): 70,000 ÷ 500,000 = **14.0%**
- **PAR30** (over 30 days): (20,000 + 8,000 + 7,000 + 5,000) = 40,000 ÷ 500,000 = **8.0%**
- **PAR60** (over 60 days): (8,000 + 7,000 + 5,000) = 20,000 ÷ 500,000 = **4.0%**
- **PAR90** (over 90 days): (7,000 + 5,000) = 12,000 ÷ 500,000 = **2.4%**

Notice how the number falls as the threshold rises. That is expected. What you watch is how each version changes over time.

#### PAR30 vs PAR90: which should you use?

- **PAR30** is an early-warning measure. It picks up problems while borrowers can still be helped. It is the most common measure in microfinance.
- **PAR90** measures serious delinquency, loans likely to become losses. Many funders and regulators use it.
- **PAR60** sits between them and is used by some institutions.

Track at least PAR30 and PAR90. If PAR30 is rising while PAR90 is flat, new problems are entering the pipeline. If PAR90 is rising, old problems are not being resolved.

#### What is a healthy PAR?

There is no universal answer, because it depends on the market, the product and the borrower. As a very rough guide often used in microfinance, PAR30 below about 5% is considered healthy, 5% to 10% needs attention and above 10% signals a real problem. PAR90 is usually held to a lower level. Short-term, high-risk products naturally run higher. Compare against your own history, your funders' covenants and any regulatory limits, rather than against a generic number.

#### PAR is not the same as write-offs

PAR measures loans that are overdue and still on the books. A write-off removes a loan from the books. A lender can show a low PAR by writing off its worst loans quickly, or by restructuring loans so they are no longer overdue. That is why PAR should be read together with the write-off ratio, the number of restructured loans and provisions.

#### PAR and provisioning

PAR and provisions go hand in hand: the higher your PAR, the more you should set aside. A common practice is to apply a provisioning percentage to each aging bucket, rising as loans get older. Provision coverage (provisions divided by PAR) shows how much of the at-risk portfolio is covered. Read more in [loan loss provisioning and write-offs](https://www.loantabs.com/resources/loan-loss-provisioning-and-write-offs/).

#### How to improve PAR

- **Act on early arrears.** Contact borrowers in the first days, not the first month.
- **Improve underwriting.** Lend to borrowers who can repay, on realistic terms.
- **Monitor by officer and branch** to find where problems concentrate.
- **Track the first installment.** Early missed payments predict later trouble.
- **Be consistent** with penalties, follow-up and escalation.
- **Use restructuring carefully**, and count restructured loans honestly.

See [how to reduce loan defaults](https://www.loantabs.com/resources/how-to-reduce-loan-defaults/) and the wider [loan collections guide](https://www.loantabs.com/resources/loan-collections-and-arrears-guide/).

#### Common mistakes

- **Counting only the overdue installment** instead of the whole outstanding balance.
- **Measuring from the wrong date.** Use the oldest unpaid installment.
- **Comparing PAR across institutions** that define it differently.
- **Ignoring restructured loans.**
- **Looking only at the level**, not the trend.

#### PAR in LoanTabs

LoanTabs includes a portfolio-at-risk report among its 28 built-in reports, with thresholds set in your reporting policy, so you do not calculate it by hand. It sits alongside the aging report (current, 1-30, 31-60, 61-90, 91-180 and 181+ days), the delinquency worklist, collections performance and a configurable provisions matrix. Reports export to CSV and PDF. See the [collections and arrears reports](https://www.loantabs.com/features/delinquency-and-collections-reports/) and [reporting](https://www.loantabs.com/features/reporting/) pages.

#### FAQ

##### What is PAR30?

Portfolio at risk over 30 days: the outstanding balance of loans with an installment more than 30 days overdue, divided by the total outstanding portfolio.

##### How do you calculate PAR?

Add the outstanding balances of all loans more than N days overdue, then divide by the total outstanding portfolio and express it as a percentage.

##### What is the difference between PAR and non-performing loans (NPL)?

NPL usually refers to loans that are 90 days or more overdue (or otherwise impaired), so it is close to PAR90. Definitions differ by regulator.

##### Is a high PAR always bad?

A rising PAR is a warning. A high but stable PAR may reflect a riskier product priced accordingly. Compare with provisions, funder covenants and your own history.

##### Does LoanTabs calculate PAR automatically?

Yes. The PAR report calculates it using thresholds you set in your reporting policy.

:::cta
Get PAR, aging and provisions from your own loan book: 30-day free trial.
:::

### How to calculate loan interest: simple vs. compound vs. flat

URL: https://www.loantabs.com/resources/simple-vs-compound-vs-flat-interest/
Published: 2026-06-02. Updated: 2026-09-30

:::answer
Simple interest is charged only on the original principal. Compound interest is charged on the principal plus interest already added, so it grows faster. Flat interest is a simple-interest calculation done once for the whole term and split into equal installments, which makes it cost more than it looks.
:::

Every loan product is built on an interest calculation method, and the method you choose changes both what the borrower repays and how forgiving the schedule is if a payment slips. The three names that come up most are simple, compound and flat interest. They are related, not interchangeable, and the confusion between them is behind many disputes about what a loan "really" costs.

This article compares them on one example and explains where each fits. For the full set of methods including reducing balance and interest-only, see [how to calculate loan interest](https://www.loantabs.com/resources/how-to-calculate-loan-interest/).

#### Simple interest

Simple interest is calculated only on the original principal, for the time the money is outstanding:

**Interest = Principal × Rate × Time**

For **1,000 at 12% a year for 3 years**, interest is 1,000 × 0.12 × 3 = **360**, and the total owed is 1,360. Interest is the same each year (120) because it is never charged on earlier interest.

Simple interest is predictable and easy to explain to a borrower, which is why it is common for short-term loans and group loans, where transparency matters as much as the math. It describes how interest is earned, not how the loan is repaid. A loan can accrue simple interest and be repaid in a lump sum, or in installments, and the installment structure then decides how the loan behaves.

#### Compound interest

Compound interest is charged on the principal plus any interest already added:

**Amount = Principal × (1 + r)^n**

The same 1,000 at 12% for 3 years gives:

- **Compounded annually:** 1,000 × 1.12³ = 1,404.93, so interest is **404.93**
- **Compounded monthly (1% a month):** 1,000 × 1.01³⁶ = 1,430.77, so interest is **430.77**

Compare that with simple interest's 360. The extra 44.93 or 70.77 is interest earned on interest, and the more often interest compounds, the larger it gets. Compounding is the norm for savings and deposits, where it works for the customer, and it appears on loans where interest accrues and is added to the balance, such as a loan repaid in one payment at the end.

For borrowers, compound interest means the cost of an unpaid balance grows over time, which is why a loan left to accrue for a long period can become much larger than it started.

#### Flat interest

Flat interest applies the simple-interest formula once, for the whole term, and divides the total by the number of installments. For 1,000 at 12% flat for 12 months:

- Interest = 1,000 × 12% × 1 = 120
- Total = 1,120; installment = 1,120 ÷ 12 = **93.33**

The borrower repays principal every month but is charged interest as if they owed the full 1,000 all year. The real annual cost is about **21.5%**, not 12%. Our guide to the [effective interest rate on flat rate loans](https://www.loantabs.com/resources/effective-interest-rate-on-flat-rate-loans/) shows how to work that out.

#### The three side by side

| | Simple | Compound | Flat |
| --- | --- | --- | --- |
| Interest charged on | Original principal | Principal plus earlier interest | Original principal, for the whole term |
| Interest on interest? | No | Yes | No |
| Typical repayment | Lump sum or installments | Lump sum, or accruing balance | Equal installments |
| Example: 1,000, 12%, 3 years | 360 | 404.93 (annual) or 430.77 (monthly) | 360, but split into installments |
| Cost feel | Easy to explain | Grows fastest | Looks cheap, costs more |

The flat rate example over three years is 360 in interest, the same as simple interest, but paid down in installments over 36 months, so the borrower's average debt is much lower than 1,000. That is why the effective rate is so much higher than 12%.

#### Which method is right for which loan?

- **Short loans and group loans** often use simple or flat interest for their clarity. If you use flat, disclose the total to repay.
- **Longer loans** are fairer on reducing balance terms, where interest is charged on what is still owed. See [flat rate vs reducing balance interest](https://www.loantabs.com/resources/flat-rate-vs-reducing-balance-interest/).
- **Loans that accrue** without periodic payments use compound interest, and the agreement should state how often it compounds.
- **Short bridging loans** may use interest-only terms, with the principal due at the end.

#### How these map to LoanTabs

LoanTabs does not have a method called "simple." Simple interest is a way of thinking about the calculation, and in practice a lender implements it as one of the methods a loan product offers: **flat**, **declining balance**, **reducing balance** (equal installments or equal principal), **interest-only**, or **compound** (accrued, or with equal installments). Each loan product fixes one method, and interest can be a percentage or a fixed amount, charged per day, week, month, year or loan cycle. The [loan management features](https://www.loantabs.com/features/loan-management/) page describes product setup, and the schedule preview when you create a loan shows the result before you save.

#### Mistakes to avoid

- **Confusing the label and the cost.** "12% flat" and "12% compound" are very different loans.
- **Not saying how often interest compounds.** Daily, monthly and annual compounding produce different totals.
- **Skipping the total repayable.** Always show the borrower what they will pay in currency.
- **Using one method for every product.** Match the method to the loan's size, term and borrower.

#### FAQ

##### Is flat interest the same as simple interest?

Flat interest uses the simple interest formula, but applies it to the original principal for the full term and splits it into equal installments. That makes the effective rate much higher than the quoted rate.

##### Is compound interest always higher than simple interest?

For the same rate and time, yes, once there is more than one compounding period. The more often interest compounds, the higher the total.

##### Which interest method is cheapest for the borrower?

Reducing balance, because interest is only charged on what is still owed.

##### Does LoanTabs support simple interest?

Simple interest is implemented through the loan product's method: flat, declining or reducing balance, or interest-only, depending on how the loan is repaid.

:::cta
Pick the interest method per loan product and see the schedule before you save.
:::

### SACCO vs MFI: what's the difference?

URL: https://www.loantabs.com/resources/sacco-vs-mfi-difference/
Published: 2026-05-18. Updated: 2026-09-30

:::answer
A SACCO (savings and credit cooperative) is owned and governed by its members, who save together and borrow from those savings. A microfinance institution (MFI) is an organization that lends, and sometimes takes deposits, from customers it serves but does not necessarily belong to. Ownership, funding, governance and regulation differ, and so do their software needs.
:::

SACCOs and microfinance institutions both serve people that mainstream banks often overlook, and they are often mentioned together. But they are structured, owned and regulated differently, and that changes how they operate and what software they need. This article explains the differences in plain terms. Details vary by country, so treat it as a general guide and check your local rules.

#### What is a SACCO?

A SACCO is a member-owned financial cooperative. Members pool savings and buy shares, and the SACCO lends to members from those funds. Key features:

- **Member ownership.** Members are the owners. Each typically has a vote, often one member, one vote, regardless of shares held.
- **Savings first.** Loans are funded mainly by members' savings and share capital.
- **Loans to members only.** Only members can borrow.
- **Common bond.** Members usually share a link: an employer, community, profession or area.
- **Surplus returned.** Profits are shared with members through dividends on shares, interest on savings or lower rates, as decided at the annual general meeting (AGM).
- **Democratic governance.** An elected board and committees, with decisions reported to members.

#### What is an MFI?

A microfinance institution provides financial services, especially small loans, to low-income people and small businesses. MFIs take many legal forms: NGOs, non-profit companies, for-profit finance companies, or licensed deposit-taking institutions. Key features:

- **Clients, not owners.** Borrowers are customers, not members with ownership rights.
- **External funding.** Loans may be funded by donors, investors, banks, or, for licensed institutions, deposits.
- **Broad clientele.** They lend to people who meet their criteria, in a defined area or market.
- **Structured lending methods.** Individual loans, group lending and village banking are common.
- **Outreach and impact goals.** Many pursue social objectives alongside sustainability.
- **Professional management.** Governed by a board that may include investors and independent directors.

#### SACCO vs MFI at a glance

| | SACCO | MFI |
| --- | --- | --- |
| Ownership | Members | Owners, shareholders, or a non-profit board |
| Who borrows | Members only | Clients meeting the MFI's criteria |
| Main funding | Members' savings and shares | Donors, investors, bank loans, sometimes deposits |
| Governance | Elected board, AGM, one member one vote | Board of directors, investors or trustees |
| Profit | Returned to members | Retained, distributed or reinvested, depending on form |
| Savings | Central to the model | Optional, and often regulated separately |
| Lending approach | Loans based on savings, shares and member standing | Individual, group or village lending, often without savings |
| Typical regulation | Cooperative law and a cooperative regulator | Microfinance, banking or non-profit law |
| Motivation | Mutual benefit | Financial inclusion and, often, commercial returns |

The categories overlap. Some SACCOs lend to non-members through subsidiaries, some MFIs take member-like savings, and countries define these terms differently.

#### Why the difference matters in practice

##### Governance

A SACCO's board answers to members at the AGM. Records such as member shares, dividend decisions and meeting minutes carry real weight. An MFI answers to its investors, funders or regulator, with reporting on portfolio quality, outreach and financial performance.

##### Lending decisions

SACCO loans are often tied to a member's savings and shares, with limits based on them. MFI loans depend more on assessment of the borrower's business and cash flow, and may be unsecured or group-guaranteed.

##### Risk

SACCOs concentrate risk in a shared member base and often a single common bond, such as one employer. MFIs concentrate risk in small borrowers with irregular incomes. Both need close monitoring of arrears. See [what is portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/).

##### Regulation

Regulation varies enormously: cooperatives are often overseen by a cooperative regulator, while MFIs may fall under central bank or microfinance laws. Confirm which rules apply to you.

#### What each needs from software

Both need the loan lifecycle: products, schedules, approvals, payments, receipts, statements, collections and reports. On top of that:

**SACCOs typically also need:**
- Member records and membership numbers
- Savings accounts and deposits
- Share capital and share transactions
- Dividend and interest calculations
- AGM and board records
- Loan limits linked to savings and shares

**MFIs typically also need:**
- Group lending and meetings
- Branch, officer and route structure
- Funder and regulatory reporting
- Frequent, small repayments in bulk
- Portfolio quality and provisioning reports

Many systems cover the loan side well and treat savings, shares and groups as add-ons. Check exactly which features are in the standard product and which are custom builds. Our guides to [microfinance software](https://www.loantabs.com/resources/microfinance-software-guide/) and [SACCO management software](https://www.loantabs.com/resources/sacco-management-software-guide/) explain what to look for.

#### How LoanTabs fits each

LoanTabs is loan management software that suits both. Its standard product covers loans, approvals, payments, accounting, 28 reports, portfolio-at-risk and provisioning, multi-branch controls and 11 staff roles. For SACCOs, member savings, share capital, dividends and AGM records, and for MFIs, group lending, are delivered as custom implementations on the Custom plan rather than as built-in features. See the [SACCO solutions page](https://www.loantabs.com/solutions/saccos/) and [microfinance institutions page](https://www.loantabs.com/solutions/microfinance-institutions/).

#### FAQ

##### Is a SACCO the same as a credit union?

Very similar. Both are member-owned savings and credit cooperatives; "SACCO" is the common term in East and Southern Africa, "credit union" elsewhere.

##### Can a SACCO also be an MFI?

Terms and legal categories vary. In some countries SACCOs are treated as a type of microfinance provider; in others they are regulated separately.

##### Do SACCOs lend to non-members?

Generally not. Lending is to members, though some SACCOs operate subsidiaries that lend more widely.

##### Which needs more complex software, a SACCO or an MFI?

Neither is simpler. SACCOs need member savings, shares and dividends; MFIs need group lending, branches and funder reporting. Choose by what you actually run.

##### Where do dividends come from in a SACCO?

From the surplus, as approved by members at the AGM. See [how SACCO share capital and dividends work](https://www.loantabs.com/resources/how-sacco-share-capital-and-dividends-work/).

:::cta
Run your loan book on LoanTabs, with SACCO and group features as custom builds.
:::

### How to run a group lending program

URL: https://www.loantabs.com/resources/how-to-run-a-group-lending-program/
Published: 2026-04-09. Updated: 2026-09-30

:::answer
Group lending is a microfinance model in which loans are made to members of a group who support and, often, guarantee each other's repayment. Groups meet regularly, repay in frequent small installments and unlock larger loans over successive cycles. Peer accountability substitutes for the collateral that most borrowers do not have.
:::

Group lending is one of the foundational models of microfinance. Instead of underwriting individuals in isolation, a lender extends credit to a group whose members share responsibility for repayment. It works because peer accountability substitutes for the collateral most microfinance borrowers do not have: members know each other, know who is reliable, and have a stake in each other's repayment. It is also easy to run badly. This article explains how the model works and how to run a program that protects both borrowers and the lender.

#### The main group lending models

##### Solidarity (joint liability) groups

A small group, often 5 to 10 people, borrows individually, but each member is jointly responsible for the others' loans. If one member cannot pay, the group is expected to cover it, or later loans to the group are withheld. Peer selection and pressure are the core mechanisms.

##### Village banking

A larger group, often 20 to 50 members, forms a "village bank" and manages its own internal lending with funds from the lender and members' savings. The group elects officers and holds meetings. The lender lends to the bank, and the bank lends to members.

##### Self-help and savings groups

Members pool savings and lend to each other, sometimes with an outside lender's support. See [village savings groups vs SACCOs vs MFIs](https://www.loantabs.com/resources/village-savings-groups-vs-saccos-vs-mfis/).

Programs differ on who is liable (the group or the individual), how large groups are, how often they meet and whether savings are compulsory. Choose the model deliberately and write it down.

#### How a group lending program runs

##### 1. Group formation

Officers meet community members and explain the terms. Groups are formed by the members themselves, since people choose partners they trust, and are then screened. Typical steps: an orientation meeting, member selection, identity checks, a training session on the rules, and a group agreement signed by all members. Some programs require a period of compulsory savings before the first loan.

##### 2. Group agreement and roles

The group elects a chairperson, treasurer and secretary. The agreement sets attendance, repayment rules, what happens if a member defaults, and how the group decides.

##### 3. First loan cycle

The first loan is small, so new groups build a track record. Amounts are set per member according to their business needs and the program's limits. Loans are disbursed, often at a group meeting.

##### 4. Regular meetings and repayments

Groups meet weekly, biweekly or monthly. Members pay their installments at the meeting, in front of the group, and the officer or group treasurer records payments and issues receipts. The public setting encourages punctuality and makes problems visible early.

##### 5. Following cycles

Groups that repay well become eligible for larger loans in the next cycle. This progressive lending is a powerful incentive: the value of future access to credit keeps members paying.

##### 6. Handling default

When a member falls behind, the group is first responsible for resolving it, through support, negotiation or covering the amount. The lender follows up, and if the group defaults, future loans are stopped. The program should have clear, fair rules for what happens.

#### Why group lending works

- **Information.** Members know each other's character and business, so screening is better than a stranger's assessment.
- **Enforcement.** Social pressure motivates repayment.
- **Cost.** One meeting serves many borrowers, keeping costs down.
- **Progressive access.** The prospect of larger future loans discourages default.
- **Support.** Members share knowledge and encouragement.

#### The risks

- **Over-indebtedness.** Members may borrow elsewhere to repay, or be pushed into debt they cannot carry.
- **Excessive peer pressure.** Public shaming and coercion can harm borrowers. Ethical programs set limits.
- **Group collapse.** When several members fail, the group can fall apart and repayment stops.
- **Collusion or fraud.** Officers or leaders may misuse funds.
- **Exclusion.** The poorest or most isolated people may not be admitted.
- **Cash handling.** Collecting cash at meetings creates a risk of loss or theft.
- **Weak records.** Errors between the group's books and yours cause disputes.

#### Controls that protect the program

- **Small first loans** and gradual increases.
- **Independent verification** of members and their businesses, not only the group's word.
- **Meeting attendance records** and rules.
- **Receipts for every payment**, with two people counting cash.
- **Prompt banking or reconciliation** of collections.
- **Officer rotation** and spot checks.
- **Limits on loan size** relative to a member's income.
- **A code of conduct** for staff on collections. Treat members with respect.
- **Regular review** of arrears by group, officer and branch. See [what is portfolio at risk](https://www.loantabs.com/resources/what-is-portfolio-at-risk-par/).

#### Records a group lending program needs

- **Group register**: name, location, formation date, meeting day and time, officers, members.
- **Member records**: identity, contact, business, loan history.
- **Group agreement** and any changes.
- **Loans**: per member, linked to the group, with cycle number.
- **Payments**: by member and by meeting, with receipts.
- **Attendance and savings** if applicable.
- **Group-level reports**: repayment rate, arrears, dropouts, cycle progress.

#### Measuring performance

Track repayment rate, PAR by group and officer, dropout rate, average loan size by cycle, and the share of groups moving to the next cycle. Watch for groups where one or two members carry the arrears.

#### Software for group lending

Group lending adds structure that individual-loan systems do not have: a group as a record, members linked to it, loans per member within a group, meeting schedules and group-level reports. Many general loan systems treat groups as an extra or as a custom build. Ask specifically how groups are represented and how a collection meeting is recorded. See [microfinance software](https://www.loantabs.com/resources/microfinance-software-guide/).

#### Group lending and LoanTabs

LoanTabs' standard product manages individual and business borrowers, guarantors, collateral, loans, payments, delinquency and accounting. **Borrower groups, meeting cadence and group-level loans and savings are delivered as a custom implementation on the Custom plan**, running on the same loan book as the rest of your portfolio, rather than as a built-in feature. Contact sales to scope the build. See [SACCO and group lending](https://www.loantabs.com/features/sacco/) and the [microfinance solutions page](https://www.loantabs.com/solutions/microfinance-institutions/).

#### FAQ

##### What is group lending?

A model where loans are made to members of a group who support each other's repayment, often with joint liability.

##### What is joint liability?

A rule under which group members are collectively responsible for each other's loans: if one defaults, the others are expected to cover it.

##### How large should a lending group be?

Solidarity groups are often 5 to 10 members; village banks, 20 to 50. Choose a size that lets members know and trust each other.

##### Is group lending better than individual lending?

It suits borrowers who lack collateral and lenders serving dispersed communities at low cost. Individual lending suits larger or more established borrowers. Many institutions offer both.

##### Does LoanTabs support group lending?

As a custom implementation on the Custom plan, not as a standard feature.

:::cta
Talk to sales about a group lending build on top of LoanTabs' loan management core.
:::

## Documentation: institution staff guide

### Getting Started with LoanTabs

URL: https://www.loantabs.com/docs/institution-staff/01-getting-started/

### Getting Started

#### Signing in

The platform uses a standard sign-in screen with **Sign In**, **Sign Up**, and **Forgot your password?** options. If you're setting up a brand-new institution, use Sign Up to create the first account, which becomes that institution's Admin.

#### Joining an existing institution

If your institution is already on the platform, don't create a new one — join it instead:

1. Ask an existing Admin or Branch Manager for the **Self-signup instructions**. They can find these from the **Team** menu → **Self-signup instructions**, which includes your institution's unique **Institution ID**.
2. Sign up with your own email address.
3. During setup, choose **Join existing institution** and enter the Institution ID you were given.

Once you submit, your account is created with **Pending** status. You won't be able to use the platform yet — an Admin or Branch Manager needs to review your request on the **Team** page (**Pending** tab), assign you a role and branch, and approve you.

##### Signed up as a new institution by mistake?

If you used **Sign Up** without choosing **Join existing institution** (or entered the wrong Institution ID), you become the Admin of a brand-new, separate institution — even if you gave it the same name as the one you meant to join. It has no connection to the real institution, and there is no way to convert that Admin account into a team member of a different institution afterward; institution owners/Admins can't be transferred or merged between institutions.

To fix this, sign up again using a **different email address**, and this time select **Join existing institution** and enter the correct Institution ID (get it from your Admin or Branch Manager — see [Team Management](07-team.md)). You can leave the mistakenly-created institution as is; it isn't linked to your correct account.

##### Account status

Your account can be in one of these states:

| Status | What it means |
|---|---|
| **Pending** | Your sign-up request hasn't been reviewed yet. You'll see a waiting screen when you try to log in. |
| **Active** | You have full access based on your assigned role. |
| **Inactive** / **Suspended** | Your access has been paused or removed by an Admin. You'll see a status screen explaining this and a Sign Out option — contact your institution's Admin if you believe this is a mistake. |

#### Finding your way around

Once you're active and signed in, you land on the **Dashboard**. Two things drive what you see from here on: your **role** (see [Roles & Permissions](06-roles-and-permissions.md)) and, for some roles, your **branch**.

##### The Dashboard

The Dashboard opens with a row of quick links, then (if there's anything waiting) a strip telling you how many loans are awaiting approval, with a link to review them. Below that:

- **Portfolio** figures — active loans, outstanding principal, what's been disbursed this month, and total loans issued.
- **Risk** figures — total arrears, PAR 30, loans overdue past maturity, and missed payments.
- **Due for Collection** — loans due today or in the next 7 days, with the borrower's phone number for a quick call (visible if you can view Reports), and **Highest Arrears** — your worst-behind loans, both linking through to the full report.
- **Recently Disbursed** and **Maturing in 30 Days**, so you can see what's just gone out and what's coming due.
- Charts for the portfolio's status breakdown and aging.

A Loan Officer sees only their own portfolio here — the same set of loans as the Loans list. The figures stay exactly as they were until you make a change yourself, switch days, or click **Refresh** — moving between the Dashboard and another page and back doesn't reload them.

##### The top bar

Across the top of every screen you'll find:

- Your institution's name
- A **Change Branch** option — in practice this only works for Admins today (see [Branches](08-branches.md)). Everyone else, including Loan Officers, Branch Managers, and Cashiers, works within their assigned branch.
- **Help**, **Apps**, and an **"Ask the portfolio assistant"** AI icon
- **Notifications** (with an unread badge)
- **Settings**
- A dark/light mode toggle
- Your account menu, with **Sign Out**

##### The side menu

The main menu adapts to your role. The items you might see, in order, are:

- **Dashboard**
- **Notifications**
- **Borrowers** — View Borrowers, Create Borrower, Guarantors, Collateral
- **Loans** — Active Loans, Closed Loans, Create Loan, Loan Drafts
- **Team** — View Team (for the roles that can see the team), and (for roles that manage staff) Add Team Member and Self-signup instructions
- **Accounting** — Cash Ledger, Cash Accounts, Assets, Expenses, Other Income, Profit / Loss
- **Reports** — visible to Admin, Branch Manager, Accountant, Auditor, Risk Analyst, Credit Committee, and Viewer
- **Billing**
- **Admin** — Admins only. Your institution's control panel: loan products, fees, penalty types, loan approval, branches, custom fields, notifications, and more (see [Admin Configuration](10-admin-configuration.md))
- **Settings** — your personal profile (see [Settings](12-settings.md))

If you don't see a menu item you expect, it's most likely gated to a different role — check [Roles & Permissions](06-roles-and-permissions.md), or ask your institution's Admin.

### Managing Borrowers in LoanTabs

URL: https://www.loantabs.com/docs/institution-staff/02-borrowers/

A **Borrower** is a person or business you lend to. Every loan is tied to a borrower record, so borrowers are typically set up before their first loan.

#### Viewing borrowers

Go to **Borrowers → View Borrowers** to see your list. Use the tabs to filter:

- **All Borrowers**
- **Approved**
- **Pending Approval** — borrowers awaiting sign-off. Select any number of them and use **Approve Selected** to approve them in bulk.

Click a borrower to open their profile, which has three tabs:

- **Details** — their information
- **Files** — uploaded documents
- **Custom Fields** — any extra fields your institution has defined (managed by an Admin under Admin → Custom Fields)

#### Adding a borrower

Go to **Borrowers → Create Borrower**. The form is organized into sections:

- **Ownership** — Branch, and the Assigned Team Member (defaults to your branch's default team member if you leave it blank)
- **Identification Details** — First Name, Middle/Last Name, Business Name, Gender, Title, Date of Birth, Country, and a Unique Identification Number (national ID, social security number, license number, etc.)
- **Contact Information** — Phone Number, Alternative Phone Number, Email
- **Address Information** — Address, City, Province/State, Zipcode
- **Employment & Financial Information** — Working Status, Employer Name, Credit Score

You must provide either a **First Name** or a **Business Name** — one of the two is required, everything else is optional at this stage. A few notes on the form:

- Phone numbers should be digits only, without a country code.
- You can add files and custom fields once the borrower has been created — there's no need to have everything ready up front.

After saving, you're taken back to the borrower list.

##### Editing a borrower and Borrower Status

Open a borrower and use Edit to update their details. The edit form includes a **Borrower Status** field — separate from the Approved/Pending tabs on the list — with these values: **Active**, **Inactive**, **Pending**, **Suspended**, **Rejected**, **Blacklisted**. Use this to reflect a borrower's standing with your institution (for example, marking someone Blacklisted after fraud, or Suspended while you investigate something) independently of whether they've been through the initial approval step.

#### Importing borrowers in bulk

For onboarding many borrowers at once, use **Import CSV** from the borrowers list:

1. Click **Import CSV**, then **Download CSV Template** to get the correct column headers.
2. Fill in the template and click **Choose CSV File** to upload it.
3. The screen shows how many rows are valid and how many failed. Click **Import N Valid Row(s)** to bring in the good rows.
4. If some rows failed, click **Download N Failed Row(s)** to get a file listing just the problems, fix them, and re-upload.

Only straightforward text fields can be imported this way: first/last name, business name, ID number, phone numbers, email, address, city, state, zipcode, employer name, and credit score. Fields like Branch, Assigned Team Member, Status, Gender, Title, Date of Birth, Country, and Working Status are **not** part of the CSV — they're either set once for the whole batch or need to be filled in afterward via the normal edit screen, since free-text values for dropdowns and dates are too error-prone to import reliably.

#### Removing a borrower

There's no "delete" action for a borrower. A borrower record is what every one of their loans, payments, comments, and files links back to, so removing the row out from under that history would either orphan those linked records or require silently cascading the delete through someone's entire loan and payment history — neither of which is safe to do automatically.

Set the **Borrower Status** to **Inactive** instead (or **Suspended** / **Blacklisted**, if that better reflects why they're being taken off the roster). This is the same field described above, and it's the effective equivalent of deleting them for day-to-day use: an inactive borrower won't appear in the borrower picker when creating a new loan (see [Loans](03-loans.md)), but their existing loans, payments, and history remain fully intact and reportable.

### Loan Management Guide: Create, Approve, Disburse

URL: https://www.loantabs.com/docs/institution-staff/03-loans/

This is the core of the platform: creating a loan, getting it approved, disbursing the funds, and managing it through to close.

#### The loan lifecycle, in brief

A loan starts as a **draft**, moves through **approval**, and is **disbursed** automatically the moment it has all the sign-offs it needs. From there it's **active** until it's fully repaid (**closed**), **written off**, or **voided**.

On the loans list, you'll see a more descriptive status rather than the raw lifecycle stage:

| Status shown | Meaning |
|---|---|
| **Current** | Active and up to date |
| **Current with Missed Payment** | Active, but a payment was missed |
| **Overdue** | Past due |
| **Closed** | Fully repaid |
| **Written Off** | Written off as uncollectible |
| **Voided** | Cancelled |

Before a loan reaches one of these, it goes through its own approval stages, shown as a progress ribbon on the loan:

1. **Draft** — being put together, not yet submitted
2. **Submitted / In Review** — waiting on one or more approvers
3. **Rejected** — sent back with a reason; use **Return to Draft** to fix it and resubmit
4. **Approved** — converted to an active loan and disbursed

#### Creating a loan

Go to **Loans → Create Loan**. First pick the **borrower** (only active borrowers appear here; Loan Officers only see borrowers assigned to them). Then choose how to build the loan:

- **Use Blank Form** — fill in every term yourself
- **Use Loan Product Template** — start from a pre-configured product

##### Loan terms you'll set

Whichever path you choose, you're working with the same underlying terms:

- **Principal Amount**
- **Interest Method** — Flat, Reducing Balance (Equal Installments or Equal Principal), Interest-Only, or Compound Interest (Accrued or Equal Installments)
- **Interest Type** — Percentage or Fixed Amount — and an Interest Rate/Amount with a period (per day/week/month/year/loan)
- **Loan Start Date**
- **Loan Duration** and its period (days/weeks/months/years)
- **Repayment Frequency** — Interval Based, Lump Sum, Set Days of the Week, or Set Dates of the Month
- **Loan Fees** — none, your institution's pre-defined fees, or a custom amount

##### Using a Loan Product

A **Loan Product** is a template an Admin sets up in advance (under Admin → Loan Products) with default terms, allowed ranges, and attached fees. When you select one:

- Fields the product locks down are pre-filled and can't be changed.
- Fields the product allows editing on can still be adjusted, but only within the product's configured minimum/maximum.
- Any fees attached to the product are added automatically.

This is the faster path when your institution has standardized loan types, since most of the decision-making is already baked into the product.

#### Getting a loan approved

Every loan (other than the fast-path described below) needs sign-off before it disburses. Your institution configures which roles must approve, under Admin → Loan Approval — but two rules always hold:

- The **Branch Manager** is always a required approver and can't be removed from the requirement.
- **Admin** can approve anything, at any time, regardless of configuration.

Beyond that, an institution can require additional roles to sign off (Loan Officer, Credit Committee, Accountant, Cashier, Auditor, Collections Officer, Risk Analyst). Each required role can only be signed off by someone holding that exact role — a Branch Manager's authority doesn't let them sign on behalf of, say, a required Credit Committee line.

To approve or reject, open the loan's **Approval** tab. Each required role has its own row with **Approve** / **Reject** actions.

- **Approving** the last required signature asks you to pick a **Principal Account** (and a **Loan Fees Account**, if the loan has fees) — these are the accounts the funds will move through — and disburses the loan immediately.
- If other approvers still need to sign, you'll be told the loan will wait for them before it disburses.
- **Rejecting** sends the loan back to Draft with your reason attached, so the creator can fix it and resubmit.

##### Fast path for small teams

If you're an Admin or Branch Manager creating a loan and nobody else at your branch holds any of the required approver roles, there's nothing to wait on — the button reads **Create Loan** instead of **Submit for Approval**, and clicking it takes you straight to the account-selection step, creating and disbursing the loan in one action.

##### What happens on disbursement

Disbursement isn't a separate manual step — it happens automatically the instant a loan gets its final approval. Behind the scenes, the principal amount is recorded as a withdrawal from the Principal Account you selected, and if the loan has fees, they're recorded as a deposit into the Loan Fees Account.

#### Managing a loan after it's active

Open a loan to see its detail page, with these tabs:

- **Details** — the loan's terms and current numbers
- **Files** — uploaded documents or links
- **Comments** — a running thread of notes about the loan, each stamped with who wrote it
- **Approval** — the sign-off history described above
- **Custom Fields** — any extra fields your institution has defined

From the Details tab you can:

- **Edit** the loan — Admin and Branch Manager only
- **View Statement** — a combined schedule and payment ledger, exportable to PDF
- **Manage Payments** — see [Payments](04-payments.md)
- **Stop Interest** / **Resume Interest** — pauses interest from accruing further (useful for hardship cases or disputes); the button shows when interest was paused and can be resumed at any time
- **Write Off Loan** — Admin and Branch Manager only, and only while the loan isn't already closed, written off, or voided
- **Reverse Loan** — Admin only, on a loan in any status

##### Writing off a loan

Use **Write Off Loan** when a loan is uncollectible. Confirming it marks the loan as Written Off as of today, stops any further interest from accruing, and records the balance at the time of write-off for your records. This action can't be undone from the loan screen — once written off, the loan simply shows "Written off on {date}" in place of the action.

##### Reversing a loan

**Reverse Loan** is different from writing off: instead of closing the loan out, it deletes it completely, along with every payment, fee, fine and money transaction ever recorded against it, undoing their effect on any money account in the process. Confirming the warning prompt is permanent — the loan disappears from every list and report, as if it had never been created, and you're taken back to Loans. A working overlay tracks progress while it runs, since a loan with a long payment history can take a while to fully unwind.

This is only available to Admins and works on a loan in any status, including one that's still active. Use it to correct a loan that was created or disbursed in error — not as an alternative to writing off a loan that's simply gone bad, since write-off keeps the full record and Reverse Loan destroys it.

#### Removing a loan

Once a loan has been submitted for approval (or created via the fast path), there's no ordinary "delete" action for it. By that point it's already tied to approval sign-offs, and once it disburses, to real account transactions, payments, comments, and files — deleting the loan would leave all of that pointing at nothing, or silently erase the accounting trail behind money that actually moved.

The one exception is a loan still sitting in **Draft**: since nothing has been approved or disbursed yet, it has nothing else linked to it, so it can be deleted. Open it from **Loans → Loan Drafts** and delete it from there.

For a loan that's already active and simply needs to come off your books, use **Write Off Loan** (above) rather than trying to delete it — it closes the loan out while keeping the full record of what happened. **Reverse Loan** (also above) is the one true delete for an active loan, but it's a much bigger action: rather than closing the loan out, it erases it and every transaction tied to it, and is meant for correcting a mistake, not for loans that have simply gone bad.

#### Tools that don't touch a real loan

- **Loan Calculator** (Loans → Loan Calculator) — a what-if tool for exploring terms and previewing a schedule (with PDF export) without creating or affecting any actual loan or borrower.

### Recording Loan Repayments and Receipts

URL: https://www.loantabs.com/docs/institution-staff/04-payments/

Payments are recorded against a specific loan, from that loan's detail page.

#### Recording a payment

1. Open the loan and click **Manage Payments**.
2. On the **Add Payment** tab, fill in:
   - **Receiving Account** — which account the money is going into (defaults to a cash account)
   - **Payment Amount** — must be greater than zero
   - **Payment Date** — must fall between the loan's start date and today
   - **Receiving Employee** — optional; defaults to the loan's assigned officer or the branch default
   - **Description / Comments** — optional notes
   - **Attachments** — optional files or links, up to 10MB each
3. Submit. You'll see a confirmation once the payment is recorded.

If an attachment fails to upload, the payment itself is still saved — you'll get a warning about the attachment, but the payment won't be rolled back, so money already recorded is never lost over a file upload issue.

#### Viewing payment history and receipts

The **Payment History** tab on the same screen lists every payment made on the loan, newest first. From here you can:

- **Edit** a payment's amount, date, or description — Admin and Branch Manager only
- Click the **print icon** next to any payment to open a printable receipt, which can be exported as well as printed

There's no "delete" action for a recorded payment — removing one after the fact would silently change the loan's running balance and the receiving account's transaction history. If a payment was entered wrong, use **Edit** to correct it instead.

#### Who can record payments

Payments can be recorded by Admin, Branch Manager, Loan Officer, and Cashier roles. Editing an existing payment is restricted to Admin and Branch Manager. See [Roles & Permissions](06-roles-and-permissions.md) for the full picture.

### Loan Portfolio Reports Guide

URL: https://www.loantabs.com/docs/institution-staff/05-reports/

### Reports

The **Reports** menu is visible to Admin, Branch Manager, Accountant, Auditor, Risk Analyst, Credit Committee, and Viewer roles. **Reports → All Reports** lists every report, grouped by area, with the dates each one opens on.

#### How every report works

All reports share one layout: the title with the branch, currency and dates underneath; **Export CSV**, **PDF** and refresh buttons on the right; a search box; filter links (**Filter by Date**, **Filter by Branch**, and report-specific ones such as Officer, Product or Status); a status line; headline figures; then the tables. Select a loan row to open the loan — coming back keeps your filters.

**Branch.** A report opens on your active branch. Admins can pick another branch or **All Branches** under **Filter by Branch** — this changes only the report, not your active branch. With All Branches, tables gain a Branch column and "By Branch" breakdowns.

**Dates.** Each report opens on the dates that fit it:

| Kind | Opens on | Reports |
|---|---|---|
| Period | Last month (1st to last day) | Profit / Loss, Disbursement, Loan Income, Write-Off & Recovery, Cash Ledger, Collections Performance, Payments Register, Portfolio Roll-forward, Officer Scorecard, Client Activity, Exceptions & Audit, General Ledger, Journal Entries, Portfolio Overview |
| As of a day | End of last month | PAR, Aging, Provisions, Concentrations, Active Loans by Officer, Loan Book, Balance Sheet, Trial Balance, Vintage & Roll Rates |
| Working list | Today | Delinquency, Daily Collection Sheet |
| Forward | Next 30 days | Expected Repayments, Maturity |

**"As of" really means as of.** A report as of 31 August shows each loan as it stood at the end of that day — payments, penalties, write-offs and closes after it are left out — so a month-end report doesn't change when you open it later, unless a record dated in that month was added or edited.

**Data completeness.** If some loans couldn't be loaded or their records disagree, the status line says so and lists them. Nothing is dropped silently.

#### Definitions used everywhere

- **On the book** — disbursed, and not yet repaid, written off or closed. Voided loans and applications (drafts, in review, rejected) are never counted.
- **Days past due (DPD)** — days since the oldest scheduled amount (installment principal, interest or fees, or interest charged after maturity) that is still unpaid. A late fee on its own doesn't make a loan late.
- **PAR N** — principal of loans more than N days past due, as a share of principal outstanding. PAR 30 counts loans 31+ days late.
- **Aging buckets** — Current, 1–30, 31–60, 61–90, 91–180 and 181+ days. **Classification**: Standard (current), Watch (up to 30), Substandard (up to 60), Doubtful (up to 90), Loss (over 90).
- **Provision** — the reporting policy's rate for each aging bucket × principal outstanding (or principal plus interest receivable, if the policy says so).
- **Recoveries** — payments on a loan after the day it was written off.
- **Loan losses** — the principal a loan still owed on the day it was written off or closed with a balance. Interest that hadn't fallen due is not a loss (it was never income).

These definitions are shared by the Dashboard and the AI assistant, so the same loan shows the same figures everywhere.

#### Portfolio & Risk

- **Portfolio Overview** — the whole book at the end of the period (outstanding, arrears, PAR, aging) and what happened during it (disbursed, collected, written off, recovered).
- **PAR Summary**, **Aging Analysis**, **Provisions**, **Concentrations** — on-book loans only. Written-off loans have left the book (they're on Write-Off & Recovery); Provisions shows their balance as a memo line because they are already expensed.
- **Active Loans by Officer** — each officer's book. Choose whether a loan counts toward the officer recorded on it or the borrower's assigned officer.
- **Loan Book & Classification** — every loan on the book with principal, arrears, interest receivable, DPD, class and provision; totals by class match the Provisions report to the cent.
- **Portfolio Roll-forward** — opening portfolio + disbursed − repaid − written off − forgiven = closing, loan by loan. Any loan that doesn't add up is listed. Also by product, officer or branch, month by month, and against the figures kept when the books were closed.
- **Officer Scorecard** — per officer: book and PAR 30, disbursements (new vs repeat clients), collection and on-time rates, write-offs; plus payments received, by who took them.
- **Maturity Report** — loans maturing in the coming window (and whether they're on schedule) and loans past maturity that still owe.

#### Collections & Disbursements

- **Delinquency Report** — today's worklist of loans with arrears, prioritised by urgency.
- **Daily Collection Sheet** — the day's field sheet by officer: overdue at the start of the day, due that day, phone numbers, collected, still owed. The PDF prints one section per officer.
- **Collections Performance** — what was overdue at the start of the period and what fell due in it, how much was paid on time, late or not at all, and where every payment went.
  - *Collection rate* = paid toward (overdue at start + due in period) ÷ that total.
  - *On-time rate* = due in period and paid by its due date ÷ due in period.
- **Payments Register** — every payment with how it was allocated, the account, who received it and when it was entered. Flags payments entered 3+ days late, with no account, or into an account outside the branch. Reversed and failed payments are listed apart.
- **Disbursement Report** — loans disbursed in the period, dated by the disbursement posting, with fees deducted, capitalized or paid separately and the net cash each borrower received; applications awaiting approval.
- **Expected Repayments** — what falls due in the window after anything already paid in advance, with arrears brought forward shown separately.

#### Income & Losses

- **Profit / Loss** — interest, fees and penalties, recoveries, other income, operating expenses, loan losses and taxes. The basis (cash or accrual) comes from the reporting policy. Loan losses are their own line, not operating expenses.
- **Loan Income** — interest, fees and penalties charged vs collected.
- **Write-Off & Recovery** — loans written off or forgiven in the period with what was owed that day and the loss posted, recoveries after write-off, and the written-off stock still owed.

#### Accounting

- **Cash Ledger** — every movement through the branch's cash accounts with running balances. Balances match **Cash Accounts** exactly. Loan-loss entries are not cash and never reduce a balance.
- **Balance Sheet** — cash and bank, loans outstanding less provisions, interest receivable (accrual basis), fixed assets, client overpayments and net assets at a date, optionally against a month or a year earlier. For a full balance sheet with equity accounts, use the Trial Balance.
- **Trial Balance** — every ledger account's balance at a date, the balance sheet it implies (assets = liabilities + equity), and checks that tie the ledger to the loan book and the cash accounts. Select an account to see its movements.
- **General Ledger** — one account's opening balance, movements and closing balance for a period.
- **Journal Entries** — every journal in a period. The ledger is built from your records (loans, payments, account transactions, expenses, other income, assets), so it can't drift from them. **Accountants and Admins** can post a **manual journal** here (for example to record capital paid in, borrowings, or to move an item out of Suspense) and **reverse** one — posted journals are never edited.
- **Period Close** — closes a branch's books month by month. Closing keeps the trial balance, balance sheet totals, the month's income statement, loan book totals and the checks as they stood, and stops manual journals being dated in that month. If a record dated in a closed month is changed later, the Trial Balance and Roll-forward show what was restated. Admins can reopen the most recent close, with a reason.

**Suspense.** Deposits and withdrawals that aren't loan postings (such as capital paid in or transfers) and entries booked with no account wait in Suspense until an accountant posts a manual journal moving them to the right account. The Trial Balance shows a check while Suspense isn't zero.

#### Analytics & Audit

- **Vintage & Roll Rates** — each month's lending (cohort) tracked by months on book: PAR 30 or cumulative write-offs as a share of what it disbursed; and where each delinquency bucket's principal ended the month.
- **Client Activity** — borrowers active at the start and end of the period, new and repeat clients, dropouts (repaid and not back within the grace period set in the reporting policy), clients lost to write-off, and the retention rate; by gender, type of business and location.
- **Exceptions & Audit** — payments entered late, edited or deleted; write-offs and closes with a balance (with who did it, and any loss posted that differs from the principal owed); interest stopped; disbursements and fees never posted to a cash account; loans whose records disagree.

#### Exporting

**Export CSV** downloads every table on the report (with totals). **PDF** prints the same with your institution's name, the branch and the dates in the header.

### Staff Roles and Permissions

URL: https://www.loantabs.com/docs/institution-staff/06-roles-and-permissions/

### Roles & Permissions

Every staff member is assigned a role when they're approved onto the team. Your role determines what you see in the menu and what actions you can take.

#### Role descriptions

| Role | What they do |
|---|---|
| **Admin** | Full access to everything: all branches, all configuration (loan products, fees, approval rules, custom fields), team management, and can approve any loan regardless of configuration. |
| **Branch Manager** | Runs day-to-day operations for one branch. Can add, view, and update borrowers, loans, and accounts for their own branch, and can manage the team members who work there. Cannot see or change anything belonging to other branches. Always required to approve loans. |
| **Loan Officer** | Handles the day-to-day loan process — can add and update loans, borrower profiles, and loan-related documents. Cannot approve loans themselves, and cannot handle payments or accounting. |
| **Credit Committee** | Reviews loan applications and makes the final call to approve or reject them, if their institution has configured them as a required approver. Cannot create or edit borrowers, loans, or accounts themselves, and cannot manage other team members. |
| **Accountant** | Handles the financial side of the business — can record and update payments and accounting entries (expenses, other income), but cannot create or edit loans or borrowers, or manage other team members. |
| **Cashier** | Can record payments, and can be configured as a required loan approver, but cannot create or edit loans or borrowers directly. |
| **Auditor** | Read access across the system for review purposes, plus Reports access. |
| **Collections Officer** | Can be configured as a required loan approver as part of the collections process. |
| **Risk Analyst** | Can be configured as a required loan approver; has Reports access for portfolio risk review. |
| **IT Support** | Support role; can switch between branches to assist staff. |
| **Viewer** | Can look at information across the system for reference, but cannot add, change, or delete anything. |

#### What each role can do, by area

| Area | Read | Create | Update | Delete |
|---|---|---|---|---|
| Borrowers | Everyone | Admin, Branch Manager, Loan Officer | Admin, Branch Manager, Loan Officer | Admin |
| Loans | Everyone | Admin, Branch Manager, Loan Officer | Admin, Branch Manager, Loan Officer | Admin, Branch Manager |
| Documents | Everyone | Admin, Branch Manager, Loan Officer | Admin, Branch Manager, Loan Officer | Admin, Branch Manager, Loan Officer |
| Payments | Everyone | Admin, Branch Manager, Loan Officer, Cashier | Admin, Branch Manager | Admin |
| Accounts | Everyone | Admin, Branch Manager | Admin, Branch Manager | Admin |
| Team | Admin, Branch Manager, Loan Officer | Admin, Branch Manager | Admin, Branch Manager | Admin |
| Expenses / Other Income | Everyone | Admin, Branch Manager, Accountant | Admin, Branch Manager, Accountant | Admin |
| Reports | Admin, Branch Manager, Accountant, Auditor, Risk Analyst, Credit Committee, Viewer | — | — | — |
| General ledger (manual journals, period close) | Same as Reports | Admin, Accountant | Admin (reopen a closed period) | — |
| Institution settings (the Admin area) | Admin | — | Admin | Admin |

A few things worth calling out that are stricter than this table alone suggests:

- **Editing or writing off a loan** is limited to Admin and Branch Manager specifically, even though Loan Officers can otherwise update loans — this extra restriction applies just to those two actions on the loan detail page.
- **Reversing a loan** — permanently deleting an active loan and everything recorded against it — is Admin only. The Loans row's Delete column above (Admin, Branch Manager) covers deleting a loan still in Draft; Branch Manager cannot reverse a loan that's already disbursed.
- **Disbursement always needs Branch Manager or Admin sign-off** in the normal approval flow. A Loan Officer can create and submit a loan, but it won't disburse until a Branch Manager or Admin approves it (or any other roles your institution has additionally required). The only exception is the fast-path described in [Loans](03-loans.md#fast-path-for-small-teams), which is only available to Admin or Branch Manager and only when no one else at the branch holds a required approver role.
- **Branch switching** in the top bar is available to Admin, Credit Committee, Accountant, Auditor, Risk Analyst, IT Support, and Viewer — not to Loan Officer, Branch Manager, or Cashier, who work within their assigned branch.

### Team Management: Add Staff and Set Access

URL: https://www.loantabs.com/docs/institution-staff/07-team/

#### Two records behind every team member

Under the hood, a team member is made up of two things, and it helps to know the difference:

- A **profile** (name, contact details, employment info) — this is what shows up on the Team list and gets assigned as a loan officer on borrowers and loans.
- **Login access** — the actual ability to sign in, with a role attached.

A profile can exist **without** login access — for example, a loan officer you want to assign loans to but who doesn't need to use the system themselves. You can add login access to a profile at any time later.

#### The Team page

Go to **Team → View Team**. The list is organized into tabs:

- **Team** — everyone
- **Active** — team members currently active
- **Inactive** — team members marked inactive
- **Archived** — team members marked archived
- **Pending** — signup requests waiting on your approval (only visible to Admin and Branch Manager)

Admins also get a **Filter by Branch** dropdown to narrow the list across branches.

Each row shows: Team Member, Email, Phone, Position, Branch, Status, and an **Access** chip — **No login** if there's no login attached yet, **Pending** if their login is awaiting activation, or their role name otherwise.

#### Adding a team member

Click **Add Team Member**, which offers two paths:

- **Add team member now** — you create the profile (and optionally their login) directly, right away.
- **Self-signup instructions** — you hand the person your Institution ID and they sign themselves up (covered in [Getting Started](01-getting-started.md)); you then approve them once they request to join.

##### Add team member now

This opens a form with several sections: Identification Details (branch, name, email, phone, title, ID number, date of birth), Employment Information (position, department, employment type, employment status, start/end date, salary), Address, Banking Information, Tax & Compliance, and Next of Kin. Salary, banking, and tax fields are only visible to Admins and to the team member themselves — nobody else can see them.

At the bottom, there's a checkbox: **Give this person login access**. If you check it:

- Choose a **User Type** — Credit Committee, Branch Manager, Loan Officer, Accountant, or Viewer. (Admin access can't be granted from this form — that's set up differently, ask your platform contact if you need a second Admin.)
- A temporary password is emailed to them automatically, which they'll be asked to change on first sign-in. They cannot use the **Forgot your password?** link on the sign-in page before that first login — it will show **"User password cannot be reset in the current state."** They must sign in with the temporary password, then change their password when prompted. An email address is required for this.

If you leave the checkbox unchecked, you've created an HR-only profile with no login — you can grant them access later from their profile (see below).

#### Approving a pending signup

On the **Pending** tab, click **Approve & Create Profile** next to a request. You'll assign:

- Their **first and last name** (self-signup doesn't collect this, so it's usually your first chance to record it)
- A **User Type** (same five options as above)
- A **Branch** (Admins can choose any branch; Branch Managers are locked to their own)

Approving activates their login and creates their team profile in one step.

##### A team member accidentally created their own institution instead of joining

If someone who was supposed to join your institution instead used **Sign Up** and ended up as the Admin of their own new institution (this happens if they skip **Join existing institution** or mistype the Institution ID), you won't find them on your **Pending** tab — they aren't part of your institution at all, even if their institution happens to have the same name as yours. There is no way to move or convert them, or their new institution, into a team member of yours; institution owners/Admins can't be transferred between institutions.

The fix is for them to sign up again with a **different email address**, this time selecting **Join existing institution** and entering your Institution ID (see **Self-signup instructions** above). Their first, mistaken sign-up can simply be left alone — it isn't linked to your institution and doesn't need to be cleaned up for you to proceed.

#### Editing a team member

Open a team member's profile to see **Details**, **Login Access** (if they have one, or a "grant access" prompt if not), **Files**, and **Custom Fields** tabs.

It's worth understanding that there are two _separate_ status fields that are easy to mix up:

| Where            | Field             | Options                                  | What it actually affects                                                                             |
| ---------------- | ----------------- | ----------------------------------------- | ------------------------------------------------------------------------------------------------------ |
| Details tab      | Status in System  | Active / Inactive / Archived             | Which Team-list tab they appear under, **and** their login access — see below.                        |
| Details tab      | Employment Status | Active / On Leave / Suspended / Inactive | HR reference only — has **no effect on login**.                                                        |
| Login Access tab | Status            | Active / Pending / Inactive / Suspended  | Whether they can sign in, day to day.                                                                  |

Status in System now controls login access one-directionally: set it to **Inactive** or **Archived** and their login (if they have one) is immediately restricted, and the Login Access tab locks — you can't grant or edit access from there until Status in System is back to **Active**. Set it back to **Active** and login access is restored automatically, but only if this same rule was the reason it was off — a **Pending** invite they never activated, or a **Suspended** account you set deliberately from the Login Access tab, is left alone either way.

Going the other direction, changing someone's Login Access Status (e.g. suspending them from that tab) never changes their Status in System — the two only sync one way. A Branch Manager can only manage access for team members in their own branch, and can't grant anyone the Admin role.

#### Removing a team member

There's currently no "delete" action for team members. A profile is linked as the assigned officer on borrowers and loans, and shows up in loan approval history — removing the row would break those references. Set their Details status to Inactive/Archived instead: it moves them off the active roster and, per the above, cuts off their login access at the same time.

### Multi-Branch Setup and Switching

URL: https://www.loantabs.com/docs/institution-staff/08-branches/

Branch management is an **Admin-only** area, found under **Admin → Branches**.

#### Your institution's default branch

Every institution starts with one branch automatically, named during setup (typically "Main" unless you chose a different name when setting up your business). This default branch is permanent — it can't be deactivated or deleted, and it's the fallback the platform switches to if the branch you're currently working from ever gets deactivated.

#### Creating a branch

Click **Create Branch** and fill in:

- **Branch Name** (required)
- **Branch Code** (optional)
- **Address** (optional)

When a branch is created, a default cash account for it is set up automatically — you don't need to create one yourself before the branch can be used for loans and transactions.

#### Switching your active branch

The branch list has a **Load Branch** action per row, which switches which branch's data you're working with — borrowers, loans, accounts, and reports all reflect whichever branch is currently loaded. Two things worth knowing:

- In practice, this action is only available to **Admin**. The "Change Branch" option may appear in the menu for a few other roles, but selecting it currently leads to an access-restricted screen rather than a working switch — Loan Officers, Branch Managers, and Cashiers instead simply work within their own assigned branch at all times, with no switcher at all.
- If your institution has more than one Admin, switching branches changes what **every** Admin sees the next time they sign in or refresh — it's a shared, institution-wide setting rather than a personal preference. Coordinate with other Admins before switching if this matters to your workflow.

Switching to a branch beyond what your subscription plan allows will prompt you to upgrade rather than switching.

#### Deactivating a branch

Edit a branch and set its status to **Inactive**. If it was your currently active branch, you'll be automatically switched to the default branch.

#### Deleting a branch

Deleting is available from a branch's edit screen (except for the default branch, which can't be deleted) and is permanent. Before deleting, make sure any staff, borrowers, and loans still linked to that branch have been reassigned elsewhere — deleting a branch does not move or clean up the records that point to it. If you're not sure everything has been reassigned, deactivate the branch instead of deleting it.

#### Loan approval rules are configured per branch

Each branch has its own settings for who's required to approve a loan before it disburses. That's covered in [Admin Configuration](10-admin-configuration.md#loan-approval-rules).

### Lender Accounting: Cash Accounts and Expenses

URL: https://www.loantabs.com/docs/institution-staff/09-accounting/

### Accounting

This covers the platform's internal cash accounts, plus recording expenses and other income.

#### Cash Accounts

A **Cash Account** is an internal ledger your institution holds — for example, a main vault or a mobile money till. These are exactly the accounts you pick from when disbursing a loan (as the Principal Account and, if applicable, the Loan Fees Account — see [Loans](03-loans.md)), and they're also where expenses and other income get recorded against.

Cash Accounts are managed under **Accounting → Cash Accounts**. Everyone except Loan Officers can view them; creating an account, editing one, and making deposits/withdrawals is limited to Admin, Branch Manager, and Accountant roles.

##### Creating an account

Click **Create Account** and fill in:

- **Account Name**
- **Opening Balance** (optional, defaults to 0)
- **Description** (optional)
- **Branches** — which branch(es) this account is available to

##### Viewing balance and history

Open an account to see two tabs:

- **Account Details**
- **Transactions** — every movement through the account (manual deposits/withdrawals, loan disbursements, loan fee collections, payments received, penalties, expenses) in chronological order, each showing a running balance

From the account list, you can also make quick manual **Deposit** or **Withdraw** entries without opening the account, by filling in an amount, transaction date, description, and an optional reference number. You can attach files to a transaction afterward from its own Files tab.

#### Assets

An **Asset** is something your institution owns — office equipment, furniture, a vehicle, a computer, or a building. Assets are managed under **Accounting → Assets**. Everyone except Loan Officers can view the list; creating, editing, and deleting an asset is Admin-only.

Click **Add Asset** and fill in:

- **Name**
- **Category** — Office Equipment, Furniture & Fixtures, Vehicles, Computers & IT Equipment, Buildings & Property, or Other
- **Description** and **Reference #** (both optional)
- **Purchase Date**
- **Purchase Cost**
- **Current Value** — defaults to the Purchase Cost; update it by hand over time as the asset's value changes (there's no automatic depreciation)
- **Notes** (optional)

Only **Active** assets count toward the institution's books — mark an asset **Disposed** instead of deleting it once it's no longer in use, so its history stays visible. The Current Value of every Active asset feeds the "Fixed assets" line on the [Balance Sheet and Trial Balance](05-reports.md#accounting). There's no automatic depreciation: record it with a manual journal on **Reports → Journal Entries**.

#### Expenses

Go to **Expenses** to record and review money going out that isn't a loan disbursement — rent, utilities, salaries, and similar costs. Available to Admin, Branch Manager, and Accountant roles (deleting an expense is Admin-only).

Click **New Expense** and a side panel opens. Choose the **Paying Account** — only **active** accounts are offered — and the employee it's **Recorded By** (this defaults to you), then fill in:

- **Category** — a fixed list covering both everyday operating costs (Salaries & Wages, Rent, Utilities, Office Supplies, Travel, Professional Services, Bank Charges, Marketing, Depreciation, Other Operating) and tax categories (Income Tax, VAT, Withholding Tax, Other Tax)
- **Amount**
- **Expense Date**
- **Description** (required) — what the expense was for
- **Payee**, **Reference #**, **Payment Method**, and **Notes** (all optional)

The Expenses list is scoped to your current branch, with search, a date-range filter, summary totals (including operating vs. tax split), and a CSV export. Use **Edit** on a row to reopen the same panel. If the account an expense was booked against has since been made inactive, the expense is locked and **Edit** is disabled.

On the account's own page (**Cash Accounts**) and on the **Cash Ledger**, an expense appears as its category followed by its description — for example "Rent - September office rent".

#### Other Income

Go to **Other Income** to record money coming in from something other than loan repayments — investment income, grants/subsidies, recoveries on written-off loans, or other miscellaneous income. Same access as Expenses (Admin, Branch Manager, Accountant; delete is Admin-only).

Click **New Income** and a side panel opens. Select the **Receiving Account** — only **active** accounts are offered — and the employee it's **Recorded By**, then fill in the **Category** (Investment Income, Grant/Subsidy, Recovery on Written-Off Loans, or Miscellaneous), the **Amount**, the **Income Date**, an optional **Name/Source** (defaults to the category if left blank), and a required **Description**.

Use **Recovery on Written-Off Loans** only for money that isn't recorded as a payment on the loan itself: a payment on a written-off loan is already counted as a recovery, and recording it here as well counts it twice (the Profit / Loss report warns when both appear in a period).

The Other Income list works the same way as Expenses — branch-scoped, searchable, filterable by date, and exportable to CSV. An entry whose account has since been made inactive is locked and can't be edited, and on the account page and the Cash Ledger it appears as its category followed by its description.

### Admin Configuration: Loan Products and Fees

URL: https://www.loantabs.com/docs/institution-staff/10-admin-configuration/

### Admin Configuration

Everything on this page lives under the **Admin** menu and is **Admin-only**. Admin is your institution's control panel: it holds every setting that applies to the whole institution, including the templates and rules staff use every day when creating and approving loans. (Settings that are just about you — your own profile, for instance — are under **Settings** instead; see [Settings](12-settings.md).)

Open **Admin** from the side menu and click a card, or type in the search box at the top to find one. The cards are grouped like this:

| Group | What's in it |
|---|---|
| **Organisation** | Institution Profile, Branches, Team & Access, Document Header |
| **Loan configuration** | Loan Products, Loan Fees, Penalty Types, Loan Approval, Custom Fields |
| **Finance & reporting** | Reporting Policy, Cash Accounts, Subscription & Billing |
| **Communication & automation** | SMS Notifications, LoanTabs AI |
| **Data & migration** | Import from Old LoanTabs |

Branches, Team & Access, Cash Accounts, and Subscription & Billing open pages that are documented elsewhere — see [Branches](08-branches.md), [Team Management](07-team.md), [Accounting](09-accounting.md), and [Billing](11-billing.md). Everything else is covered below.

#### Loan Products

A **Loan Product** is a pre-configured loan template — set it up once, and staff can build new loans from it in seconds instead of entering every term by hand (see [Loans](03-loans.md#using-a-loan-product)).

Go to **Admin → Loan Products → Create Loan Product**:

- **Loan Product Name** and **Status** (Active/Inactive)
- **Branches** — which branch(es) can use this product
- **Applicant Portal Visibility** — whether the product is available for self-service applications, once the borrower portal is back online

**Principal Settings**: whether staff/applicants can edit the loan amount, and the minimum, default, and maximum Principal.

**Interest Settings**: Interest Method (Flat, Reducing Balance – Equal Installments or Equal Principal, Interest-Only, or Compound Interest – Accrued or Equal Installments — each shows a plain-language explanation as you select it), Interest Type (Percentage or Fixed Amount), Interest Period, whether the rate is editable, and minimum/default/maximum Interest.

**Duration Settings**: whether duration is editable, the duration period (Days/Weeks/Months/Years), and minimum/default/maximum Duration.

**Repayment Settings**: Repayment Frequency (Daily through Yearly, or Lump Sum), and a **Repayment Order** you can drag into any sequence — this controls how an incoming payment gets split when it doesn't cover everything owed. For example, with the default order (Penalty → Fees → Interest → Principal), a payment first clears any penalty, then fees, then interest, and whatever's left reduces the principal.

**Loan Maturity Settings**: whether the loan should keep accruing under different terms after its maturity date, and if so, what rate and basis to use.

**Fees & Charges**: attach any of your institution's Loan Fees (set up separately, below) that apply to this product — only fees available to the product's selected branch(es) can be attached.

A couple of things this form doesn't include, in case you go looking: there's no description field and no duplicate-name check, so double-check the name you choose since two products can currently share the same name.

#### Loan Fees

Go to **Admin → Loan Fees → Create Loan Fee**. Fields:

- **Name** and **Description**
- **Category** — this determines how the fee interacts with the loan:

  | Category | What it means |
  |---|---|
  | **Non-Deductable Fee** | Billed as a separate line item — the borrower pays it on top of the loan, in full. |
  | **Deductable Fee** | Taken out of the loan amount at disbursement — the borrower receives less than the full principal. |
  | **Capitalized Fee** | Added into the principal itself, so interest is charged on the fee as well as the loan. |

- **Calculation** — a Fixed Amount, or a Percentage of the Principal, Interest, or Principal + Interest
- **Amount / Rate**
- **Branches** — which branch(es) this fee is available to

Once created, a fee is available to be attached to any Loan Product on a matching branch, or added directly to an individual loan. Editing an existing fee also lets you set it to Inactive.

#### Penalty Types

Go to **Admin → Penalty Types**. Create and manage the penalty types that can be applied to overdue or defaulted loans.

#### Custom Fields Manager

Go to **Admin → Custom Fields**. This lets you add extra fields onto forms without needing a code change — useful for institution-specific information the standard fields don't cover.

**Creating a field**: choose the **Form** it belongs to (Borrower, User, Loan, or Collateral), a **Field Label**, and a **Field Type**:

- **Text** — free text
- **Number** — numbers only
- **Dropdown** — pick from a list you define (add options one at a time)
- **Date** — a date picker
- **Textarea** — a multi-line text box

Check **Set this as a Required Field** if it should be mandatory. New fields show up immediately on the relevant create form.

**Editing or removing a field**: use the Modify tab — select the form, load its fields, and you can edit a field's label or required setting, or delete it outright. Note that fields added to the User form can currently only be managed from the Create tab, not Modify.

Custom fields you create apply to **your current branch** — if your institution has more than one branch, make sure you're on the right branch before creating a field, since staff on a different branch may not see it.

#### Loan Approval Rules

Go to **Admin → Loan Approval**. This is where you decide who has to sign off on a loan before it disburses, and it's configured **separately for each branch** — pick the branch you want to configure at the top of the page.

A few rules always apply, regardless of configuration:

- **Admin** can always approve any loan and never needs to be added explicitly.
- **Branch Manager** is always a required approver once the branch has an active one on staff — this can't be turned off.

Beyond that, click **Edit** and check any additional roles you want to require: Loan Officer, Credit Committee, Accountant, Cashier, Auditor, Collections Officer, or Risk Analyst. A role only appears as an option if someone with that role is actually on staff at the branch — there's no point requiring a signature from a role nobody holds.

If a branch only has Admin users on staff, this page tells you there's nothing to configure — approvals happen automatically. See [Loans](03-loans.md#getting-a-loan-approved) for how the approval process plays out day to day once it's configured.

#### Institution Profile

Go to **Admin → Institution Profile**. Your institution's basic profile: Institution Name, Institution ID (visible to Admins), Branch, Country, and Currency. Only Admins can open this page; click **Edit** to change the profile and save.

#### Document Header

Go to **Admin → Document Header**. Upload an image to appear at the top of exported documents like loan statements. This page is Admin-only. Recommended image size is 2480 × 350 px, JPG or PNG, up to 2MB, with a transparent or white background so it fits documents cleanly. Note that this only controls the header **image** — it doesn't currently offer a way to add custom header text or address details separately.

#### Reporting Policy

Go to **Admin → Reporting Policy** (the same form is also behind the **Reporting Policy** button on the Reports page). It holds the institution-wide rules the reports and the general ledger read, so every report uses the same definitions:

- **Income basis** (cash or accrual) for Profit / Loss and the general ledger, and how **loan losses** are expensed
- **Stop accruing after** a number of days past due
- **PAR thresholds** (in days) — PAR N counts loans more than N days late
- **Provision on** (principal outstanding, or principal plus interest receivable) and a **provision %** for each aging bucket
- **Dropout grace period** — how long a repaid borrower can go without a new loan before counting as a dropout
- **High-value disbursement** and **single-borrower limit** — optional thresholds used to flag exceptions; leave blank for no flag

Only Admins can change the policy. See [Reports](05-reports.md) for where each setting shows up.

#### SMS Notifications

Go to **Admin → SMS Notifications**. Send SMS updates through your own SMS aggregator account, using an event/audience grid to choose who gets texted for what. The aggregator bills your institution directly for each message — LoanTabs doesn't see or charge for the messages themselves.

Pick an aggregator, enter its API credentials (an expandable "how to get your API key" panel walks through each provider's setup), and optionally set a Sender ID, then **Connect**. Once connected, set a default country (used to interpret phone numbers stored without a country code) and a monthly segment cap — sending stops for the rest of the month once the cap is reached — plus an optional signature appended to every message, space permitting. A **Send test SMS** button (limited to 5 per hour, and counted against your monthly cap) lets you confirm the connection works before turning notifications on for real. **Remove** disconnects the provider and stops all SMS sending immediately; you can reconnect the same or a different provider at any time.

#### LoanTabs AI

Go to **Admin → LoanTabs AI**. A single switch (Admin-only) to turn the conversational portfolio assistant on or off for your institution. It can answer questions about your portfolio and propose creating or updating records, but every proposed change still needs a person to review it and click Confirm before anything is saved — nothing happens automatically. A "Bring your own API key" option is shown but marked **Coming soon**; it isn't usable yet, and nothing you type there is stored or sent anywhere in the meantime.

#### Import from Old LoanTabs

Go to **Admin → Import from Old LoanTabs**. If your institution used the Old LoanTabs before moving to the New LoanTabs AI, an Admin can bring across the old business's borrowers, loans (with their payments, penalties and fees), accounts and their transactions, team members, guarantors, collateral, contracts, expenses, and other income from here. This is a **one-time migration** from the Old LoanTabs (also known as LoanTabs Classic), not an ongoing sync — once it completes, anything entered into the Old LoanTabs afterward will never come across.

**Before you start**

- You must be signed in to the New LoanTabs AI with the **same, verified email address** you used in the Old LoanTabs — that's how the system finds your old account. If you set up your New LoanTabs AI business with a different email, this won't find anything.
- Only the **original business owner's** Old LoanTabs account can be imported — a staff login from the old system won't work, and you'll be told so if you try.
- This can only be run **once** per institution. If you need to redo it, contact support rather than trying again.
- Only an institution Admin can open this page and run an import.

**Running it**

1. Click **Preview import**. This previews what would be imported — how many borrowers, loans, payments, accounts (and the deposits and withdrawals recorded on them), team members, guarantors, collateral items, contracts, expenses, and other-income records — along with any notes worth reading first (for example, a loan or payment linked to more than one account in the old system, which gets simplified to just the first account). Nothing is written to either system at this stage.
2. If the preview looks right, click **Confirm import** to run it for real. A large business can take a few minutes; you can leave the tab open or check back later, and the status updates as it goes.

**What the import changes**

- Everything is imported into your institution's existing default branch, which is renamed to match your Old LoanTabs business name (no new branch is created). Your institution's **currency** is also set to the Old LoanTabs' currency (UGX if the old business never set one) — the confirmation prompt tells you which. These are the only two existing records the import changes; nothing else you've already entered in the New LoanTabs AI is overwritten or deleted. If the currency can't be set automatically, you'll be told to set it yourself in **Admin → Institution Profile**.
- Old LoanTabs securities come across as **Collateral**. Each loan is given an imported loan product named **Imported (legacy)**, one for each combination of loan type and interest/duration period the old loans used, so migrated loans calculate the way they did before. Migrated loan numbers start with **IMPORT-**.
- Each borrower keeps their assigned loan officer where the old system recorded one; otherwise the borrower and their loans are attributed to the Admin running the import.
- Files attached in the Old LoanTabs (borrower documents, and documents on guarantors, collateral and contracts) are not copied. They appear in the Files tabs as **links** to the original files, marked as added by "Old LoanTabs import", and open the same way any other link does.
- Team members who had a login in the Old LoanTabs are given a New LoanTabs AI login and emailed a temporary password.
- A loan that had already matured and was fully repaid, but was never manually marked closed or cleared in the Old LoanTabs, is imported as **Closed** rather than Active — the same way it would end up if it were a native New LoanTabs AI loan that reached a zero balance.
- Everything recorded on an Old LoanTabs account's own page comes across onto that account: deposits and withdrawals as account transactions, expenses on the **Expenses** page and other income on the **Other Income** page, each still tied to its account. Each loan's disbursement and any loan fees collected are posted to the account they went through in the Old LoanTabs, exactly as the New LoanTabs AI records them for a new loan.
- Your New LoanTabs AI subscription and plan limits are not affected by the import.

**What doesn't come across**

Where the old system linked one item to several accounts or several borrowers (a payment, loan fee, expense or other-income record with more than one account; a contract with more than one borrower), only the first is kept. Any row that couldn't be imported — for example a loan whose borrower wasn't found — is skipped and listed under **Things worth knowing** rather than stopping the import.

Investors, investments, and reports aren't migrated into the New LoanTabs AI — they're preserved for your records in the downloadable file below, but not written anywhere you'll see in the app. Old billing history (Pesapal payment records) is dropped entirely, since it's specific to the old system and has nowhere to go in the new one.

**After it finishes**

You'll see a summary of everything migrated, **Things worth knowing** (each team member who was emailed a temporary password, and any skipped rows), a reconciliation of each account's balance (what the New LoanTabs AI computed from the imported transactions), and a **Download full import details (JSON)** link with the complete import record for your own reference. The Old LoanTabs left anything dated before an account was created out of that account's balance; the New LoanTabs AI counts every entry, so where an account had such entries the reconciliation says how many and by how much the balance differs.

If an import stops part-way (for example on a very large business), the page offers **Retry import** after a few minutes; retrying removes whatever the stopped attempt had written before starting again.

### Subscription Plans and Billing

URL: https://www.loantabs.com/docs/institution-staff/11-billing/

Go to **Billing** to see your institution's subscription and manage payments. This page stays accessible even if your subscription has lapsed, so you're never locked out of paying.

#### What you'll see

- Whether you're on a free trial or a paid plan, and how many days remain
- A **Check payment status** button, for confirming a recent payment right away instead of waiting for it to update automatically
- A Monthly/Yearly toggle
- Cards for each plan you're eligible to move to, each with its price, a short description, and a list of what's included

#### Plan tiers

| Plan | Seats | Branches | Staff per branch |
|---|---|---|---|
| Free Trial | Unlimited (30 days) | Up to 10 | Unlimited |
| Pro | 1 | 1 | 1 |
| Corporate | 5 | 1 | 5 |
| Enterprise | Unlimited | Up to 10 | Unlimited |

Pricing and any current promotional rates are shown live on the Billing page — check there for exact figures, since they're subject to change. You can only move up to a higher plan or renew your current one from this page; downgrades aren't self-service.

#### Upgrading or renewing

Click **Choose {Plan}** (or **Renew {Plan}** if you're staying on your current one). You'll be redirected to a secure payment page to complete the transaction, then brought back automatically. While that's being confirmed, you'll see a brief "Payment successful" or "Payment failed" screen — if a payment doesn't seem to register right away, use **Check payment status** on the Billing page rather than repeating the payment.

Renewing early never shortens your current term — a renewal always extends from your current expiry date, or from today if you've already lapsed.

#### If your seats or branches don't fit your plan

A few things can happen if your institution outgrows its current plan, or after a downgrade:

- **Trial or subscription expired** — you and your team are directed to the Billing page to renew before continuing.
- **Your own seat no longer fits** — if the plan's seat count is reduced and you're not among the users it still covers, you'll be told your seat is no longer active until the plan is upgraded again. Admins are never affected by this.
- **A branch you're on no longer fits** — similar to seats, but for branches; Admins are automatically moved to the institution's default branch instead of being blocked.
- **A specific action needs a higher plan** — for example, adding another team member when you're at your seat limit shows an upgrade prompt right at that action, rather than blocking the whole app.

Seats and branches are kept by whoever has held them longest (Admins are always kept, regardless of when they joined), so deactivating someone doesn't automatically free up their seat for a new hire — you'll want to upgrade if you need more room.

#### Who can access Billing

Every staff role can view and pay for the institution's subscription. This is the one area that isn't split by role — Admin, Branch Manager, Loan Officer, Credit Committee, Accountant, Cashier, Auditor, Collections Officer, Risk Analyst, IT Support, and Viewer can all access it.

### Personal Settings and Profile

URL: https://www.loantabs.com/docs/institution-staff/12-settings/

### Settings

**Settings** is your personal page, and it looks the same whatever your role. Settings that apply to the whole institution — its profile, document header, notifications, custom fields and data imports — are Admin-only and live under **Admin** instead (see [Admin Configuration](10-admin-configuration.md)).

Go to **Settings** and click a topic to open it in a panel.

#### Account Information

This is your own personal profile, not institution-wide settings — anyone can edit their own copy. You can update your First Name, Last Name, Phone Number, Date of Birth, and National ID (your email and role are fixed). The rest is read-only reference information: your account's system details, and a summary of your institution's current subscription tier, status, days remaining, and enabled features.

#### Customer Portal Link

Shows a shareable link and QR code for borrowers to reach a self-service portal. This portal isn't available to borrowers yet, so treat this as a preview of a feature that's coming rather than something to share with borrowers today.

#### Signing out

Use the **Sign Out** button at the bottom of the Settings page, or the Sign Out option in the side menu or your account menu in the top bar.

#### Looking for an institution-wide setting?

If you're an Admin and expected to find one of these here, they now live under **Admin**:

| Setting | Where to find it now |
|---|---|
| Institution Settings (name, country, currency) | **Admin → Institution Profile** |
| Document Header | **Admin → Document Header** |
| LoanTabs AI | **Admin → LoanTabs AI** |
| SMS Notifications | **Admin → SMS Notifications** |
| Custom Fields | **Admin → Custom Fields** |
| Import from Old LoanTabs | **Admin → Import from Old LoanTabs** |

Other roles don't see these — they're Admin-only.