Loan Security Price
Loan Security Price defines the value or rate of a security/collateral that is pledged against a loan for a specific period. This price is automatically applied when the respective loan security is assigned to a loan during its validity period.
In Frappe Lending, Loan Security Price helps maintain time-based security valuations, ensuring that loan eligibility calculations are based on the applicable collateral value.
Did You Know?
Maintaining historical security prices allows lending organizations to apply accurate collateral valuations based on the effective date of the security rate.
Accessing Loan Security Price
To create or manage loan security prices, navigate to:
Home > Lending > Loan Security > Loan Security Price
Prerequisites
Before creating a Loan Security Price, ensure the following record is available:
- Loan Security
Note
Create the required Loan Security record before defining its price to ensure proper mapping and valuation.
Creating a Loan Security Price
Follow these steps to add a new Loan Security Price:
- Open the Loan Security Price List.
- Click on Add Loan Security Price.
- Select the required Loan Security.
- Enter the applicable Rate.
- Define the Validity Period for the security price.
- Save the record.
Key Information in Loan Security Price
| Field | Description |
|---|---|
| Loan Security | Identifies the security or collateral for which the price is being defined. |
| Rate | Specifies the value of the security used for loan valuation. |
| Validity Period | Defines the period during which the security price remains applicable. |
Benefits of Using Loan Security Price
| Benefit | Description |
|---|---|
| Accurate Valuation | Apply the correct collateral value while processing secured loans. |
| Time-Based Pricing | Maintain different security rates for different validity periods. |
| Automated Application | Automatically apply the relevant security price when a loan security is assigned. |
| Better Risk Management | Support consistent loan evaluation using predefined security values. |
Best Practices
- Maintain updated security prices based on current market valuations.
- Define clear validity periods for every security price entry.
- Review expired security prices regularly and update them when required.
- Ensure each security price is linked with the correct Loan Security record.
