Process Loan Demand
Process Loan Demand is used to generate loan repayment demands for eligible loans. While loan demands are typically created automatically based on the repayment schedule, this process allows users to generate them manually whenever required.
In Frappe Lending, all loan demands are generated through the Process Loan Demand document. Users should use this process instead of creating Loan Demand records manually to ensure accurate demand calculation and accounting.
Did You Know?
Using the Process Loan Demand document ensures that principal, interest, penalties, and other applicable charges are calculated consistently according to the loan configuration.
Accessing Process Loan Demand
To manually generate loan demands, open the Process Loan Demand document from the Lending module.
Generating Loan Demands
Follow these steps to manually generate loan demands:
- Create a new Process Loan Demand document.
- Enter the required processing details, such as the posting or demand date, if applicable.
- Optionally select filters, depending on the available configuration.
- Save and submit the document.
- The system generates all eligible loan demands based on the selected criteria.
Note
Loan Demand records should not be created manually. Always use the Process Loan Demand document to generate repayment demands.
How the Process Works
When the process is executed, Frappe Lending performs the following actions:
- Identifies loans that have repayment amounts due.
- Calculates the applicable principal, interest, penalties, and other charges.
- Generates Loan Demand records for eligible loans.
- Updates the related accounting information where applicable.
What Gets Generated
| Generated Record | Description |
|---|---|
| Principal Demand | Creates demand entries for the principal amount due. |
| Interest Demand | Generates demand entries for accrued interest that has become payable. |
| Penalty Demand | Creates demand entries for overdue penalties, where applicable. |
| Other Charges | Includes applicable fees or additional loan charges in the generated demand. |
Benefits of Process Loan Demand
| Benefit | Description |
|---|---|
| Automated Demand Generation | Generates repayment demands according to loan schedules and configurations. |
| Consistent Calculations | Ensures principal, interest, and penalty amounts are calculated accurately. |
| Improved Accounting | Supports proper accounting treatment when repayment amounts become due. |
| Operational Efficiency | Eliminates the need for manually creating individual Loan Demand records. |
Best Practices
- Use Process Loan Demand instead of manually creating Loan Demand records.
- Run the process after verifying repayment schedules and interest accruals.
- Review generated demands before initiating repayment collection.
- Process demands regularly to keep borrower dues up to date.
- Verify generated demand records for loans with special repayment terms or restructuring.
