The penalty setup feature is found in the setup dropdown

PENALTY CONFIGURATION

Penalties are charged when customers fail to pay a loan in time. 

• To charge penalties as a percentage, you click on box 1, enter the rate to charge on box 2 and the day the penalty is set after the due date on box 3.

• To charge penalties in cash, you click on box 4, enter the amount to charge on box 5 and the day the penalty is set after the due date on box 6.

• To enable recurring penalties, click on box 7 and enter the number of days the penalty will recur in box 8.

• To charge recurring penalties as a percentage, you click on box 9, enter the rate to charge on box 10 and the day the penalty is set after the due date on box 11.

• To charge recurring penalties in cash, you click on box 12, enter the amount to charge on box 13 and the day the penalty is set after the due date on box 14.

• To set the maximum number of days a recurring penalty should be charged, click on box 15 and set the number of days in box 16.

A loan rollover is an unpaid loan that is renewed to a new loan with the same principal and other loan components.

To rollover an unpaid loan, click on box 17 and enter the desired day after the due date a loan should be rolled over on box 18.

Penalties can be charged for bounced cheques. 

With reference to the diagram above;

• To enable the charges click on box 1 and enter the bounced account number on box 2.

• To charge a fixed amount click on box 3 and enter the amount to charge on box 4.

• To charge the penalty as a fixed amount click on box 5 and enter the percentage in box 6.

Early settlement is when a client pays for a loan before the due date.

• To configure early settlement settings click on box 7 and enter the account number on box 8.

• To disable further interest and fees accruals on early settlement click on box 9

• To disable further penalty charges click on box 10.

An unpaid loan can be marked as a bad loan.

• To enable this feature click on box 11 and enter the day after the due date the loan should be marked as a bad loan on box 12.

After filling the form with penalty settings, click on save to save the penalty configurations.

To view the summary of penalties that may contain information such as the total penalties, total paid penalties and total unpaid loans affected among others.

1. Click on the penalties summary button.

PENALTY TYPES

The following actions can be done on the penalty types tab:

1. Add a new penalty type.

2. Search for a penalty type.

3. Delete a penalty type

4. Edit a penalty type

HOW TO ADD A NEW PENALTY TYPE

1. Click on the penalty type button on the top right of the page

2. On the Penalty type form

• Enter the name of the penalty type on field 1.

• Select the penalty fee type, it could either be rate, fixed amount, fixed amount per instalment or compounded rated on field 2.

• Enter the fee value on field 3.

• The account number and the deferred income account are auto generated.

• Zoho ID is used when a lender uses Zoho as a third party software tool.

• After filling in the details, click on the submit button.

HOW TO SEARCH FOR A PENALTY TYPE.

1. Click on the search here button.

2. You can either search by name, account number, deferred account number, fee type or by value.

HOW TO DELETE A PENALTY TYPE

1. Click on the delete icon as shown in the diagram below.

2. Confirm this action by clicking on the delete button.

HOW TO EDIT A PENALTY TYPE.

1. Click on the pencil icon as shown in the diagram below.

2. Edit the changes in the form and click on the submit button.