Loans
The Loans module will manage all loan-related functionality within the UBU Digital Finance Solution.
Overview
This module will provide comprehensive functionality for loan origination, servicing, and management, including:
- Loan application and approval workflows
- Loan disbursement and repayment tracking
- Interest calculation and fee management
- Loan status management
- Integration with other system modules
Planned Features
Loan Origination
The system will support a complete loan origination process:
- Loan Application: Capture customer information and loan requirements
- Credit Assessment: Evaluate creditworthiness and risk
- Loan Approval Workflow: Multi-stage approval process
- Documentation: Generate and manage loan documents
- Disbursement: Process loan disbursement to customer accounts
Loan Types
The system will support various loan types:
- Personal Loans: Unsecured loans for personal use
- Business Loans: Loans for business purposes
- Mortgages: Secured loans for property purchase
- Auto Loans: Loans for vehicle purchase
- Microloans: Small loans with simplified terms
Each loan type will have configurable:
- Interest rate structures (fixed, variable)
- Term options
- Fee structures
- Collateral requirements
- Repayment schedules
Loan Servicing
The system will provide comprehensive loan servicing capabilities:
- Repayment Tracking: Monitor scheduled and actual payments
- Interest Calculation: Calculate interest based on loan terms
- Fee Management: Apply and track loan-related fees
- Delinquency Management: Track and manage late payments
- Early Repayment: Handle partial or full early repayments
Loan Status Management
The system will track loans through their lifecycle:
- Application: Initial loan application
- Under Review: Application being evaluated
- Approved: Loan approved but not disbursed
- Disbursed: Loan funds disbursed to customer
- Active: Loan in repayment phase
- Delinquent: Loan with late payments
- Defaulted: Loan in default
- Closed: Loan fully repaid or written off
Reporting and Analytics
The Loans module will provide robust reporting capabilities:
- Loan portfolio analysis
- Delinquency and default reporting
- Interest income projections
- Regulatory compliance reporting
- Risk assessment metrics
Integration Points
The Loans module will integrate with other system components:
- Accounts Module: To disburse loans and process repayments
- Transactions Module: To record loan-related transactions
- User Management: To associate loans with customers
- Authentication Module: To verify user permissions for loan operations
- Organizational Units: To implement branch-level loan management
Planned API Endpoints
| Endpoint | Method | Description |
|---|---|---|
/loan/application |
POST | Submit a loan application |
/loan/application/{application_id} |
GET | Get a specific loan application |
/loan/application/{application_id}/status |
PUT | Update application status |
/loan/ |
GET | Get all loans (with filtering) |
/loan/{loan_id} |
GET | Get a specific loan |
/loan/{loan_id}/status |
PUT | Update loan status |
/loan/{loan_id}/repayment |
POST | Record a loan repayment |
/loan/{loan_id}/schedule |
GET | Get repayment schedule |
/loan/customer/{customer_id} |
GET | Get loans for a customer |
/loan/types |
GET | Get all loan types |
/loan/reports |
GET | Generate loan reports |
Planned Data Model
The Loans module will use the following database tables:
Loan_Types
| Column | Type | Description |
|---|---|---|
| type_id | UUID | Primary key |
| type_name | VARCHAR | Name of the loan type |
| type_description | VARCHAR | Description of the loan type |
| min_amount | DECIMAL | Minimum loan amount |
| max_amount | DECIMAL | Maximum loan amount |
| min_term | INTEGER | Minimum term in months |
| max_term | INTEGER | Maximum term in months |
| base_interest_rate | DECIMAL | Base interest rate |
| is_active | BOOLEAN | Whether the loan type is active |
Loan_Applications
| Column | Type | Description |
|---|---|---|
| application_id | UUID | Primary key |
| customer_id | UUID | Foreign key to Users table |
| type_id | UUID | Foreign key to Loan_Types table |
| amount | DECIMAL | Requested loan amount |
| term_months | INTEGER | Requested term in months |
| purpose | VARCHAR | Purpose of the loan |
| status | VARCHAR | Application status |
| submitted_at | TIMESTAMP | When the application was submitted |
| updated_at | TIMESTAMP | When the application was last updated |
Loans
| Column | Type | Description |
|---|---|---|
| loan_id | UUID | Primary key |
| application_id | UUID | Foreign key to Loan_Applications table |
| customer_id | UUID | Foreign key to Users table |
| type_id | UUID | Foreign key to Loan_Types table |
| account_id | UUID | Foreign key to Accounts table |
| amount | DECIMAL | Loan amount |
| interest_rate | DECIMAL | Interest rate |
| term_months | INTEGER | Loan term in months |
| status | VARCHAR | Loan status |
| disbursed_amount | DECIMAL | Amount disbursed |
| outstanding_principal | DECIMAL | Outstanding principal |
| outstanding_interest | DECIMAL | Outstanding interest |
| next_payment_date | DATE | Date of next payment |
| created_at | TIMESTAMP | When the loan was created |
| approved_at | TIMESTAMP | When the loan was approved |
| disbursed_at | TIMESTAMP | When the loan was disbursed |
| closed_at | TIMESTAMP | When the loan was closed |
Loan_Payments
| Column | Type | Description |
|---|---|---|
| payment_id | UUID | Primary key |
| loan_id | UUID | Foreign key to Loans table |
| transaction_id | UUID | Foreign key to Transactions table |
| amount | DECIMAL | Payment amount |
| principal_amount | DECIMAL | Amount applied to principal |
| interest_amount | DECIMAL | Amount applied to interest |
| fees_amount | DECIMAL | Amount applied to fees |
| payment_date | TIMESTAMP | When the payment was made |
| due_date | DATE | When the payment was due |
| status | VARCHAR | Payment status |
Loan_Schedule
| Column | Type | Description |
|---|---|---|
| schedule_id | UUID | Primary key |
| loan_id | UUID | Foreign key to Loans table |
| payment_number | INTEGER | Payment number in sequence |
| due_date | DATE | When the payment is due |
| total_amount | DECIMAL | Total payment amount |
| principal_amount | DECIMAL | Principal portion |
| interest_amount | DECIMAL | Interest portion |
| fees_amount | DECIMAL | Fees portion |
| status | VARCHAR | Payment status |
Implementation Plan
Phase 1: Loan Origination
- Implement loan type data models
- Create loan application data models and APIs
- Develop basic loan approval workflow
- Implement loan creation and disbursement
Phase 2: Loan Servicing
- Implement repayment schedule generation
- Develop payment processing
- Create interest calculation logic
- Implement loan status management
Phase 3: Reporting and Analytics
- Implement loan portfolio reporting
- Develop delinquency tracking
- Create regulatory reporting
- Implement risk analytics
Security Considerations
The Loans module will implement several security measures:
- Access Control: Strict permissions for loan operations
- Approval Workflows: Multi-level approval for loan disbursement
- Audit Trail: Comprehensive logging of all loan activities
- Data Protection: Encryption of sensitive loan information
- Fraud Prevention: Validation checks for loan applications
Compliance Requirements
The Loans module will be designed to meet regulatory requirements:
- Truth in Lending: Clear disclosure of loan terms
- Fair Lending: Non-discriminatory lending practices
- Credit Reporting: Accurate reporting to credit bureaus
- Collections Compliance: Adherence to collection regulations
- Record Keeping: Maintaining comprehensive loan records