UBU Finance System Platform Documentation — Transactions V1

Introduction

This documentation covers the comprehensive transaction management features available on the UBU Finance System Platform (https://system.ubu-economy.com). The platform implements a sophisticated loan management system that includes:

• Loan Products: Create, manage, and reconcile loan products with search and filtering options.
• Loan Document Types: Define, create, and manage required documents with search and filters.
• Collateral Types:Configure acceptable collateral categories and valuation rules.
• Loan Applications: Apply for loans and track their status through the approval process.
• Collateral Applications:Submit, process, and approve collateral linked to loans.
• Loan Disbursement:Initiates the disbursement process to release funds to the borrower.
• Loan Payment:Managing payments made toward the loan.
• Loan Penalties:Apply loan penalties on loans.
• Risk Assessments:Evaluate client and loan-level risks through automated scoring engines and detailed assessment outputs.
• Loss Given Default (LGD):Calculate expected loss rates for loans using predefined LGD rules and loan-specific conditions.
• Exposure at Default (EAD):Compute total outstanding exposure using EAD rules, payment history, and remaining balances.
• Probability of Default (PD):Generate statistical estimates of the likelihood of a borrower defaulting using PD rules and loan performance data.
• Loan Analytics & Monitoring:Check payment eligibility, track repayments, and view performance dashboards.

Platform Overview

System Platform URL: https://system.ubu-economy.com

The system platform provides loan administrators and staff with corresponding permissions, giving them control over loan-related operations according to their roles, from creating and managing loan products to processing applications, approving collateral, monitoring repayments, and accessing loan analytics.

Loan Setup and Configuration workflow

1. Create Loan Document Types

Define categories of documents required during loan processing (e.g., ID, collateral, agreements).This will be needed only on loan that required document.

2. Create Collateral Types

Define Collateral Types required during collateral application (e.g., house, cars, ect).This will be needed only on loan that required collateral.

3. Create Loan Products & Add Configurations

Define acceptable collateral categories and their valuation rules to ensure standard processing across all loan applications.

4. Create & Configure Loan Transaction Channels

Navigate to Transaction Management → Transaction Channels.

Click Create Transaction Channel and fill out the popup form.

After creating a channel, configure it by linking predefined transaction types.

5. View & Configure Transaction Type Links

In the Transaction Channels table, click View Transaction Types Linked.

You are redirected to a page listing all linked transaction types.

Each row has an option View Transaction Type Link Capabilities, containing:

Capabilities Tab — define operational capabilities.

Permissions Tab — configure user role permissions.

Both tabs include a Create button for adding new configuration entries.

6. Create Loan Application

Register a new loan request by entering borrower information and basic loan requirements.

7. Manage Loan Application

Opening a loan application displays 3 main tabs:

Loan Details

Collateral Applications

Loan Application Documents

In this section, users can:

Add collateral entries (if required by the product)

Upload collateral documents

Attach loan documents

View details and logs

Evaluate collateral

Delete collateral

View Loss Given Default (LGD) and add LGD details → Note: LGD is only available after the loan has been disbursed.

8. Approve Loan Application

After completing all steps (document verification, collateral evaluation), the loan application is approved.

Initial Setup of loan Management

Before using the loan management features, the system requires configuration of Transaction Channels for both loan disbursement and loan repayment. These channels define how loan funds are released and how repayments are processed, and must be set up first to ensure smooth operations for disbursement, payments, reconciliations, and penalties.

Steps: Configuring Transaction Channels and Permissions

1. Access Transaction Channels

Navigate to Transaction Management → Transaction Channels from the sidebar.

2. Create a Transaction Channel

Click Create Transaction Channel.

Fill out the form with channel details.

Save the channel to register it for use in loan operations.

3. Open Transaction Type Links

In the Actions column of the channel table, click View Transaction Types Linked.

4. Create a Transaction Type Link

Click Create Transaction Type Link.

Select the transaction type and configure its interaction with the channel.

Save to link the transaction type to the channel.

5. View Transaction Type Link Capabilities

In the Actions column of the transaction type links table, click View Capabilities.

Two tabs are displayed: Capabilities and Configure Permissions.

6. Create Capabilities

On the Capabilities tab, click Create to add allowed operations (e.g., create, approve, reconcile).

7. Configure Permissions

Switch to the Configure Permissions tab.

Click Create to assign roles for each capability.

Save to enforce role-based access control on transaction processing.

Step by step for accessing individual client's loans and loans applications

1. From the sidebar open Accounts → Accounts or use Search of balance indexing in top nav bar.

2. In the Accounts table, find the account you want (use search or filters if needed).

3. In that account’s row, click the View / View Details button.

4. Inside the account details page, click on the Balance Indexing Account section or tab.

5. The Balance Indexing Account Details page opens, showing several tabs at the top/side.

6. Click the Loan Applications tab to view all loan requests linked to this balance indexing account (status, dates, product, and actions like View or Process).

7. Click the Loans tab to see all active and historical loans attached to this balance indexing account (loan amount, disbursement date, status, payment schedule, and actions like View Payments).

8. Use search, filters, or action buttons inside each tab to find, open, or manage a specific application or loan.

Steps for accessing loan applications

On Loans Application Tab, users to manage client loan requests from creation and review to approval or rejection with full visibility into status, logs, and eligibility details. We have the following features:

1. Search Bar: Quickly find loan applications by client name, loan product, or reference number.

2. Create Loan Application Button: Opens a form to create a new loan request by entering client, product, and loan details.

3. Filter by Status: Lets users view applications by current status (Pending, Approved, Rejected, etc.).

4. Applications Table: Displays all loan applications with information such as client name, product, amount, date, and status.

5. View Details: Opens complete application information including loan terms and attachments.

6. Logs: Shows the history of actions (created, reviewed, approved, etc.).

7. Edit: Allows modification of application details before approval.

8. View Loan Application Configurations: Displays loan configuration details like eligibility and limits. when you click on that button we have other 3 tabs which are :

   Loan Application Details: Displays key information about the loan request such as loan product, amount, repayment terms, interest rate, and applicant details.

   Loan Collateral Applications: Shows all collaterals submitted for that loan, including type, value, ownership, and evaluation status. After clicking under loan collateral applications we have :

   1. Search Bar: Used to find specific collateral records by type, reference, or description.
   
   2. Filter by Status : Filters collaterals based on their current state (e.g., Pending, Approved, Rejected, Evaluated).
   
   3. Add Collateral Application Button : Opens a form to link or create a new collateral record for the current loan application.
   
   4. Collateral Applications Table : Displays all collateral entries related to the loan with columns for type, value, status, and available actions. In actions column we have :
   
      - View Button : Opens detailed collateral information including owner, valuation, and supporting documents.
   
      - Logs Button: Displays the action history for that collateral record (creation, evaluation, updates, etc.).
   
      - Evaluate Collateral Application Button : Allows authorized users to approve and assess the collateral’s value for the loan.
   
     - View Given Loss Default: Opens a page displaying the Loss Given Default (LGD) applied to this collateral. This page also has a Create/Add LGD button to register new LGD rules or values for the collateral.
   
      - Delete Button : Removes the collateral record from the loan application (with confirmation prompt).
   

   Loan Document Applications : Lists all uploaded or required documents (e.g., ID, proof of income, collateral papers) associated with the loan application.

9. Approve Loan Application: Approves the request and moves it to the loans stage.

10. Reject Loan: Marks the application as rejected with optional remarks.

11. View Eligibility Details: Shows client eligibility metrics such as income, credit score, and liabilities.

12. Delete: Permanently removes the loan application from the system.

Loan Application Credit Line Eligibility

For a loan application to be approved, the Balance Indexing Account must have an adjusted credit line that is greater than or equal to the requested loan amount. If the adjusted credit line is less than the requested principal amount, the account is marked as not eligible for the loan.

The Credit Line calculation is based on three key parameters set in the Credit Line Eligibility Policy for the Loan Product:

• Risk Factor Multiplier (k): A multiplier used to adjust income based on volatility
• Inflow To Loan Ratio (ILR): The ratio used to calculate affordability capacity
• Credit Score Months: The number of months considered for analysis

The system calculates various metrics including mean inflow, volatility, adjusted income, movement weight, and movement score to determine the final adjusted credit line. For detailed information on how these calculations are performed, including formulas and examples, refer to the Credit Line Calculation Guide.

Loan Application Credit Line Score Details Formulas

Metric	Formula	Description
Growth Score	growth_score = (InflowLastMonth - InflowFirstMonth) / InflowFirstMonth	Measures the growth rate of inflows from the first to the last month
Average Net Movement	average_net_movement = (Total inflows - Total outflows) / credit_score_months	Calculates the average net cash flow per month over the analysis period
Mean Inflow	Mean Inflow = (TMI1 + TMI2 + TMI3 + ... + TMIn) / n	Average of total monthly inflows where n is the credit score months
Monthly Deviation	Xi = TMI(i) - Mean Inflow	Difference between each month's total monthly inflow and the mean
Squared Monthly Deviations	Xi² = (Xi) × (Xi)	Square of each monthly deviation
Sum of Squared Deviations	Sum = X1² + X2² + ... + Xn²	Total of all squared deviations
Mean of Deviation	Mean of Deviation = Sum of Squared Deviations / credit_score_months	Average of squared deviations
Volatility (Standard Deviation)	Standard Deviation = √(Mean of Deviation)	Square root of the mean of deviation, representing income variability
Adjusted Income	adjusted_income = mean Inflow - (k × volatility)	Income adjusted for risk, where k is the risk factor multiplier
Movement Weight	movement_weight = mean Inflow / (mean Inflow + volatility)	Weight factor representing the stability of income flows
Affordability Capacity	affordability_capacity = ILR × meanInflow	Maximum loan amount the borrower can afford based on income
Credit Line	credit_line = AdjustedIncome × MovementScore × MovementWeight × RiskFactorMultiplier	Final calculated credit line available to the borrower

Abbreviations:

• TMI: Total Monthly Inflows on a balance indexing account
• ILR: Inflow To Loan Ratio
• k: Risk Factor Multiplier
• n: Credit Score Months (number of months considered for analysis)
• i: Month index (e.g., month 1, month 2)

Steps to accessing individual loans

On Loans Tab we have client's loans individually. We have the following features:

1. Search Bar: Search for loans by client name, loan ID, or product type.

2. Filter by Status: Filter loans based on their status (Active, Closed, Overdue, etc.).

3. Loans Table: Displays loan details including client name, loan product, amount, disbursement date, and repayment status.

4. View Details: Opens full loan information including terms, repayment structure, and collateral.

5. Disburse Loan: Initiates the disbursement process to release funds to the borrower.

6. View Loan Payments: Navigates to a dedicated page showing two tabs:

   Loan Amortization: Displays the timeline and expected installments.

   Loan Payments: Shows actual payments made with dates and amounts and filter by date and search by payment code.

7. Payment Application: Opens a form for recording or managing payments made toward the loan.

8. Penalty: opens penalty details and applies it to the loan.

9. View Final Risk Assessment

   Displays the loan’s final risk rating and assessment summary.

   When clicked, it redirects the user to a dedicated Risk Assessment Page, which contains a More Actions button with the following options:

   Run Risk Assessment – Recalculates the loan’s risk based on the latest data.

   View Latest Risk Assessment – Opens the most recent assessment results.

10. Calculate Probability of Default: Allows user to calculate the loan’s Probability of default value.

11. View Exposure at Default: Opens detailed Exposure at Default (EAD) information for the loan where we have two tabs:

    Loan Details Tab:

    • Displays the loan’s EAD value, applied rule, and calculation details.
    • More Actions Button: Dropdown with the following options:

    Calculate EAD: Triggers recalculation of the loan’s Exposure at Default as a pop up form .

    View Latest Calculation: Opens the most recent EAD calculation details.

    Exposure at Default Tab:

    - Shows actual payments made with dates and amounts and filter by date and search by payment code.
    - More Actions Button: Dropdown with the following options:
    
         Calculate EAD : riggers recalculation of the loan’s Exposure at Default as a pop up form .
    
        View Latest Calculation: Opens the most recent EAD calculation details.
    

12. View Probability of Default Calculations : Opens a page showing all past PD calculations for the loan.

    Page includes a More Actions menu with:

    > Calculate Probability of Default: Performs a new Probability of Deafault calculation immediately.
    
    > View Latest Probability of Default Calculation: Opens the most recent Probability of Default result
    

13. Logs: Displays all historical actions or events related to that specific loan.

Loan Management Features

Features Accessible from Sidebar Menu (Loan Management)

Loan Products

You can find this feature in the sidebar for easy access

Create Loan Product Button

Aspect	Description
Permission	Create Loan Product
Functionality	Opens a form to add a new loan product with details such as product name,
	currency, interest rate, repayment terms, and eligibility criteria
Access	Available on the Loan Products page under the Loan Management section
Platform	System Platform

Filter Button

Aspect	Description
Permission	View Loan Products
Functionality	Allows filtering of loan products based on status, currency, and payment
	allocation to refine visible results in the table
Access	Found on the Loan Products page toolbar beside the search bar
Platform	System Platform

Search Bar

Aspect	Description
Permission	View Loan Products
Functionality	Enables users to search loan products by name or keyword for quick access
Access	Positioned at the top of the Loan Products page, next to the filter button
Platform	System Platform

Loan Products Table

Aspect	Description
Permission	View Loan Products
Functionality	Displays a list of all loan products, showing key details like product name,
	currency, status, and payment allocation
Access	Central section of the Loan Products page
Platform	System Platform

View Button

Aspect	Description
Permission	View Loan Product Details
Functionality	Opens a detailed view of the selected loan product, showing its configuration,
	status, and eligibility setup
Access	Found in each row of the Loan Products Table
Platform	System Platform

After clicking on View Button we have the following 4 tabs which are :

N.B:For a product to be fully configured you must configure internal bank account (principal asset account,interest revenue account,penalty revenue account) and credit line policy.

1. Loan Product Details Tab

   • Displays all core details of the loan product such as product name, description, interest rate, repayment terms, and currency.

   • Includes an Edit Button that allows users to modify loan product details like name, rate, and repayment options.

2. Loan Product Documents Tab

   • Lists all document types associated with the selected loan product (e.g., ID copy, collateral proof, financial statement).

   • Includes an Edit Document Type Button to modify or update the linked document requirements for that product.

3. Linked Internal Bank Accounts Tab

   • Displays internal bank accounts connected to the loan product for disbursement and repayment tracking.

   • Includes a More Actions Button that provides the following options:

   View Logs – Displays the record history of account linking and updates.

   Edit Internal Bank Accounts – Allows modification of linked internal accounts.

   Remove Internal Bank Accounts – Unlinks an internal account from the loan product.

4. Credity Line Policy Tab

   • Displays all credit line policy policies and conditions applied to the loan product (e.g., income range, credit score, collateral requirements).

   • Contains a More Actions Button with the following options:

   View Logs – Shows the activity history related to the eligibility policy.

   Edit Policy – Opens a form to update the existing eligibility policy details.

   Remove Policy – Deletes or detaches the selected eligibility policy from the loan product.

5. Batch Payments Tab

   • Displays all batch payment records associated with the selected loan product, including processed batches, pending batches, amounts, and statuses.

   • Provides a clear overview of batch payment activities to help users track bulk repayment operations linked to the product.

Reconciliation Button

Aspect	Description
Permission	Reconcile Loan Products
Functionality	Performs reconciliation of loan product transactions, usually at the end of the day,
	ensuring all loan activities match financial records
Access	Located in each row of the Loan Products Table beside the view and delete options
Platform	System Platform

Batch Payments Button

Aspect	Description
Permission	Process Batch Payments
Functionality	Allows users to initiate or view batch payment operations for the selected loan product,
	enabling bulk processing of loan repayments
Access	Located in each row of the Loan Products Table, next to the reconciliation button
Platform	System Platform

Logs Feature

Aspect	Description
Permission	View Logs
Functionality	Displays the complete activity history of each record
Access	Found in each row of the Loan Products Table
Platform	System Platform

Loan Provision

Aspect	Description
Permission	View Loan Provision
Functionality	Opens a detailed view displaying the loan provisions attached to the selected loan product
Access	Located in each row of the Loan Products Table
Platform	System Platform

View Loans Provision Prerequisites

Aspect	Description
Permission	View Loans Provision Prerequisites
Functionality	directs you to a page which show loan provison prerequisites
Access	Located in each row of the Loan Products Table
Platform	System Platform

Delete Button

Aspect	Description
Permission	Delete Loan Product
Functionality	Removes the selected loan product from the system, subject to role-based permissions
Access	Found in each row of the Loan Products Table, next to the reconciliation button
Platform	System Platform

Loan Document Types

You can find this feature in the sidebar for easy access

Create Document Type Button

Aspect	Description
Permission	Create Loan Document Type
Functionality	Opens a form to create a new loan document type by specifying the document name,
	category, and status (Active or Inactive)
Access	Located at the top of the Loan Document Types page under the Loan Management section
Platform	System Platform

Search Bar

Aspect	Description
Permission	View Loan Document Types
Functionality	Allows users to search for loan document types using the document name for quick access and filtering
Access	Positioned at the top of the Loan Document Types page
Platform	System Platform

Filter Button

Aspect	Description
Permission	View Loan Document Types
Functionality	Displays all created loan document types with details such as name, category, and current status (Active/Inactive)
Access	Found beside the search bar on the Loan Docum
Platform	System Platform

Loan Document Types Table

Aspect	Description
Permission	View Loan Document Types
Functionality	Displays all created loan document types with details
Access	Main section of the Loan Document Types page
Platform	System Platform

View Details Button

Aspect	Description
Permission	View Loan Document Type Details
Functionality	Opens a detailed view showing full information
Access	Found in each row of the Loan Document Types Table
Platform	System Platform

Activate / Deactivate Button

Aspect	Description
Permission	Update Loan Document Type Status
Functionality	Allows users to toggle the status of a document type between Active and Inactive
Access	Found in each row of the Loan Document Types Table
Platform	System Platform

Delete Button

Aspect	Description
Permission	Delete Loan Document Type
Functionality	Deletes a document type from the system, subject to user permissions
Access	Located in each row of the Loan Document Types Table, next to the activate/deactivate button
Platform	System Platform

Logs Feature

Aspect	Description
Permission	View Logs
Functionality	Displays the complete activity history of each record
Access	Found in each row of the Loan Products Table
Platform	System Platform

Collateral Types

You can find this feature in the sidebar for easy access

Add Collateral Type Button

Aspect	Description
Permission	Create Collateral Type
Functionality	Opens a form to create a new collateral type
Access	Located at the top of the Collateral Types page
Platform	System Platform

Search Bar

Aspect	Description
Permission	View Collateral Types
Functionality	Allows users to search for collateral types by name
Access	Located at the top of the Collateral Types page
Platform	System Platform

Filter Button

Aspect	Description
Permission	View Collateral Types
Functionality	Filters the list of collateral types by status
Access	Located beside the search bar on the Collateral Types page
Platform	System Platform

Collateral Types Table

Aspect	Description
Permission	View Collateral Types
Functionality	Displays a table containing all created collateral types with details
Access	Central section of the Collateral Types page
Platform	System Platform

View Details Button

Aspect	Description
Permission	View Collateral Types
Functionality	Opens detailed information about a collateral type
Access	Found in each row of the Collateral Types Table
Platform	System Platform

Edit Button

Aspect	Description
Permission	Edit Collateral Type
Functionality	Opens the collateral type form pre-filled with the selected record’s data and update them
Access	Found in each row of the Collateral Types Table
Platform	System Platform

Activate / Deactivate Button

Aspect	Description
Permission	Update Collateral Type Status
Functionality	Allows users to toggle a collateral type’s status between Active and Inactive
Access	Found in each row of the Collateral Types Table next to the view and delete options
Platform	System Platform

Delete Button

Aspect	Description
Permission	Delete Collateral Type
Functionality	Deletes a collateral type from the system, depending on user permissions and approval levels
Access	Found in each row of the Collateral Types Table next to the view and delete options
Platform	System Platform

Logs Feature

Aspect	Description
Permission	View Logs
Functionality	Displays the complete activity history of each record
Access	Found in each row of the Loan Products Table
Platform	System Platform

Pending Collateral Applications

you can find pending collateral applications feature in the sidebar for easy access Or you can find them in loan Application

On this page we view pending collateral applications and we approve them to add collateral to a loan application , you first have to go to loans applications tab in balance indexing account and follow the steps as mentioned earlier.

Search Bar

Aspect	Description
Permission	View Collateral Applications
Functionality	Enables users to search for collateral applications by name
Access	Top section of the Collateral Applications page
Platform	System Platform

Filter by Status

Aspect	Description
Permission	Filter Collateral Applications
Functionality	Filters the list of applications based on their status
Access	Located next to the Search Bar
Platform	System Platform

Collateral Applications Table

Aspect	Description
Permission	View Collateral Applications
Functionality	Displays all collateral applications
Access	Main content section of the page
Platform	System Platform

View Details Button

Aspect	Description
Permission	View Collateral Details
Functionality	Opens a detailed view of the selected collateral application
Access	Found in each row of the Collateral Applications Table
Platform	System Platform

Evaluate Button

Aspect	Description
Permission	Evaluate Collateral
Functionality	Opens a form or popup allowing authorized users to assess the collateral’s value,
	risk, and acceptability for loan purposes. Updates the status after evaluation
Access	Found in each row of the Collateral Applications Table, next to the View button
Platform	System Platform

Delete Button

Aspect	Description
Permission	Delete Collateral Application
Functionality	Removes the selected collateral application from the system after confirmation
Access	Found in each row of the Collateral Applications Table, next to the Evaluate button
Platform	System Platform

Logs Feature

Aspect	Description
Permission	View Logs
Functionality	Displays the complete activity history of each record
Access	Found in each row of the Loan Products Table
Platform	System Platform

Product Reconciliations

You can find this feature in the sidebar for easy access

Loan product reconciliation is the process of comparing records of loan payments, transactions, and outstanding balances from different sources to ensure accuracy and consistency.

Search Bar

Aspect	Description
Permission	View Product Reconciliations
Functionality	Allows users to search product reconciliations by product name for quick access
Access	Found at the top of the Product Reconciliations page under the Loan Management section
Platform	System Platform

Filter Button

Aspect	Description
Permission	View Product Reconciliations
Functionality	Filters reconciliation records by status and currency to refine displayed data
Access	Located beside the search bar on the Product Reconciliations page
Platform	System Platform

Product Reconciliations Table

Aspect	Description
Permission	View Product Reconciliations
Functionality	Displays a table of all loan product reconciliations
Access	Main content area of the Product Reconciliations page
Platform	System Platform

View Details Button

Aspect	Description
Permission	View Product Reconciliations
Functionality	Opens detailed information about a specific reconciliation record
Access	Found in each row of the Product Reconciliations Table
Platform	System Platform

View Loan Reconciliation Details Button

Aspect	Description
Permission	View Loan Reconciliation Details
Functionality	Opens a page showing reconciliation details, including amounts, status, and executed by user
Access	Found in each row of the Product Reconciliations Table
Platform	System Platform

Logs Feature

Aspect	Description
Permission	View Logs
Functionality	Displays the complete activity history of each record
Access	Found in each row of the Loan Products Table
Platform	System Platform

Penalty Classifications

You can find this feature in the sidebar for easy access

Search Bar

Aspect	Description
Permission	View Penalty Classifications
Functionality	Enables users to search for penalty classifications by name
Access	Top section of the Penalty Classifications page
Platform	System Platform

Filter by Max Days, Min Days, and Currency

Aspect	Description
Permission	View Penalty Classifications
Functionality	Filters displayed penalty classifications based on maximum days, minimum days, and currency criteria
Access	Top section of the Penalty Classifications page, beside search bar
Platform	System Platform

Create Penalty Classification Button

Aspect	Description
Permission	Create Penalty Classification
Functionality	Opens a form to define a new penalty classification
Access	Top right corner of the Penalty Classifications page
Platform	System Platform

Table Display

Aspect	Description
Permission	View Penalty Classifications
Functionality	Displays a list of all penalty classifications with details
Access	Main content section of the Penalty Classifications page
Platform	System Platform

View Button

Aspect	Description
Permission	View Penalty Classification Details
Functionality	Opens a form to modify details of an existing penalty classification
Access	Actions column of the Penalty Classifications table
Platform	System Platform

Logs Button

Aspect	Description
Permission	View Penalty Classification Logs
Functionality	Opens log history showing all activities related to the classification
Access	Actions column of the Penalty Classifications table
Platform	System Platform

Edit Button

Aspect	Description
Permission	Edit Penalty Classification
Functionality	Opens a form to modify details of an existing penalty classification
Access	Actions column of the Penalty Classifications table
Platform	System Platform

View Loans by Penalty Classification Button

Aspect	Description
Permission	View Loans by Penalty Classification
Functionality	Opens a page showing all loans affected by or linked to this classification
Access	Actions column of the Penalty Classifications table
Platform	System Platform

Delete Icon

Aspect	Description
Permission	Delete Penalty Classification
Functionality	Removes the selected penalty classification from the system after confirmation
Access	Actions column of the Penalty Classifications table
Platform	System Platform

Loan Penalities

You can find this feature in the sidebar for easy access

Penalties are applied automatically or manually to overdue loans based on predefined rules and penalty classifications. The system calculates charges depending on factors like overdue days, loan amount, and currency, and updates the loan records accordingly.

Search Bar

Aspect	Description
Permission	View Loan Penalties
Functionality	Enables users to search for loan penalties by name
Access	Top section of the Loan Penalties page
Platform	System Platform

Filter Options

Aspect	Description
Permission	View Loan Penalties
Functionality	Filters loan penalties based on selected criteria
Access	Top section of the Loan Penalties page, beside the search bar
Platform	System Platform

Run Penalties on All Loans Button

Aspect	Description
Permission	Run Loan Penalties
Functionality	Executes penalty computation across all eligible loans based on predefined penalty configurations
Access	Top right corner of the Loan Penalties page
Platform	System Platform

Table Display

Aspect	Description
Permission	View Loan Penalties
Functionality	Displays all loan penalties with key details
Access	Main content section of the Loan Penalties page
Platform	System Platform

View Button

Aspect	Description
Permission	View Loan Penalty Details
Functionality	Opens a detailed view of a selected loan penalty
Access	Actions column of the Loan Penalties table
Platform	System Platform

To apply penalities on Specific loan you folllow the following steps:

1. Go to Personal Balance indexing account details or Customers → Loans.

2. In the loans table, find the loan you want to update.

3. In the Actions column, click the Apply Penalties on Loan icon.

4. A confirmation pop-up will appear. Click Confirm.

5. The system will automatically apply the penalties to the selected loan.

N.B: To run penalty on all loans you use Run Penalities on all loans button found on page this page.

Loan Overdue

You can find this feature in the sidebar for easy access

Displays loans which are overdue and with their respective balance indexing account number

Search Bar

Aspect	Description
Permission	View Loan Penalties Overdue
Functionality	Enables users to search overdue penalty records
Access	Top section of the Loan Penalties Overdue page
Platform	System Platform

Filter Button

Aspect	Description
Permission	View Loan Penalties Overdue
Functionality	Displays all loans with overdue penalties, showing details
Access	Main content area of the Loan Penalties Overdue page
Platform	System Platform

Risk Classifications

You can find this feature in the sidebar for easy access

They are predefined

Search Bar

Aspect	Description
Permission	View Risk Classifications
Functionality	Searches risk classifications by risk category name
Access	Top section of the Risk Classification page
Platform	System Platform

Filter by Status

Aspect	Description
Permission	View Risk Classifications
Functionality	Filters risk classifications by active/inactive
Access	Located beside the search bar
Platform	System Platform

Risk Classifications Table

Aspect	Description
Permission	View Risk Classifications
Functionality	Displays all risk classifications info
Access	Main content section of the Risk Classification page
Platform	System Platform

View Button

Aspect	Description
Permission	View Risk Classification Details
Functionality	Opens a popup/page showing the risk classification full details
Access	Found in each row of the Risk Classifications Table
Platform	System Platform

Edit Button

Aspect	Description
Permission	Edit Risk Classification
Functionality	Opens a form with prefilled data to update the classification
Access	Found in each row of the Risk Classifications Table
Platform	System Platform

View Loans by Probability of Default Classification

Aspect	Description
Permission	View Loans by Probability of Default Classification
Functionality	Opens a page displaying all loans assigned to the selected Probability of Default classification
Access	Found in each row of the Risk Classifications Table
Platform	System Platform

Activate/Deactivate Button

Aspect	Description
Permission	Activate/Deactivate Risk Classification
Functionality	Toggles status of the selected risk classification (active ↔ inactive)
Access	Found in each row of the Risk Classifications Table
Platform	System Platform

Loss Given Default Rules

You can find this feature in the sidebar for easy access

Search Bar

Aspect	Description
Permission	View Loss Given Default Rules
Functionality	Allows users to search LGD rules by rule name or related attributes
Access	Top section of the Loss Given Default Rules page
Platform	System Platform

Filter Section (Min Ratio & Max Ratio)

Aspect	Description
Permission	View Loss Given Default Rules
Functionality	Allows filtering of LGD rules by minimum and maximum ratio thresholds
Access	Located below the search bar
Platform	System Platform

Loss Given Default Rules Table

Aspect	Description
Permission	View Loss Given Default Rules
Functionality	Displays LGD rules info
Access	Central section of the Loss Given Default Rules page
Platform	System Platform

View Button

Aspect	Description
Permission	View Loss Given Default Rule
Functionality	Opens a full details modal/page showing LGD rule configuration
Access	Located in the actions column of each row in the LGD Rules Table
Platform	System Platform

Edit Button

Aspect	Description
Permission	Edit Loss Given Default Rule
Functionality	Opens a form with prefilled LGD rule details for modification
Access	Located in the actions column of each row in the LGD Rules Table
Platform	System Platform

On this page we have predefined rules

To perform loss given analysis:

1. Go to Personal Balance indexing account details or → Loan Applications.

2. In the loan applications table, click the View Loan Application Configurations icon in the Actions column.

3. On the configurations page, open the Collateral Loan Application tab.

4. In the collateral table, click View Loss Given Default in the Actions column.

5. You will be taken to the LGD Analysis page. Click Add Loss Given Default Analysis.

6. Fill in the pop-up form and click Submit.

7. The new analysis will appear in the LGD table.

Collateral Value Calculations

This section describes the formulas used to calculate collateral-related metrics for loan applications.

Effective Collateral Value (ECV) (Loss Given Default)

Formula: effective_collateral_value (ECV) = market_value × (1 - haircut)

Description: Calculates the effective value of collateral after applying a haircut percentage. The haircut represents a discount applied to the market value to account for potential market volatility and liquidation costs.

Where:

• market_value: The current market value of the collateral asset
• haircut: A percentage discount applied to account for risk and market conditions (expressed as a decimal, e.g., 0.20 for 20%)

Example: If a property has a market value of $100,000 and a haircut of 15%, the effective collateral value would be:

ECV = $100,000 × (1 - 0.15) = $100,000 × 0.85 = $85,000

Coverage Ratio

Formula: Coverage Ratio = ECV ÷ Outstanding Loan Amount

Description: Measures the ratio of effective collateral value to the outstanding loan amount. A ratio greater than 1.0 indicates that the collateral value exceeds the loan amount, providing a safety margin. This ratio is converted to a percentage for better readability by users.

Where:

• ECV: Effective Collateral Value (as calculated above)
• outstanding_loan_amount: The total amount currently owed on the loan

Example: If the effective collateral value is $85,000 and the outstanding loan amount is $70,000:

coverage_ratio = $85,000 ÷ $70,000 = 1.214

This indicates the collateral covers 121.4% of the outstanding loan amount.

Exposure At Default Rules

You can find this feature in the sidebar for easy access

It is run on every loan and on this page we have pre-defined rules on which our loans are classificied accordingly.

Search Bar

Aspect	Description
Permission	View Exposure At Default Rules
Functionality	Allows users to search EAD rules by classification
Access	Top section of the Exposure At Default Rules page
Platform	System Platform

Filter by Status

Aspect	Description
Permission	View Exposure At Default Rules
Functionality	Filters EAD rules by Active or Inactive status
Access	Top section of the Exposure At Default Rules page
Platform	System Platform

Exposure At Default Rules Table

Aspect	Description
Permission	View Exposure At Default Rules
Functionality	Displays EAD information
Access	Main section of the Exposure At Default Rules page
Platform	System Platform

View Button

Aspect	Description
Permission	View Exposure At Default Rules
Functionality	Opens a detailed view of the selected EAD rule configuration
Access	Found in the actions column of each row in the EAD Rules Table
Platform	System Platform

Logs Button

Aspect	Description
Permission	View Exposure At Default Rules Logs
Functionality	Displays the audit trail/history of changes made to the selected EAD rule
Access	Found in the actions column of each row in the EAD Rules Table
Platform	System Platform

Edit Button

Aspect	Description
Permission	Edit Exposure At Default Rule
Functionality	Opens a form prefilled with the EAD rule details for modification
Access	Found in the actions column of each row in the EAD Rules Table
Platform	System Platform

Activate/Deactivate Rule Button

Aspect	Description
Permission	Activate/Deactivate Exposure At Default Rule
Functionality	Toggles the rule’s operational status between Active and Inactive
Access	Found in the actions column of each row in the EAD Rules Table
Platform	System Platform

To perform analysis on each loan you follow these steps:

1. Go to Personal Balance indexing account details or & Customers → Loans.

2. In the loans table, find your loan record and click the View Exposure at Default icon in the Actions column.

3. You will be redirected to a page with two tabs. Open the Exposure at Default tab.

4. On the EAD page, you will see a table and a More Actions button.

5. Click More Actions → Calculate EAD.

6. A pop-up form appears. Fill in the required details and submit.

7. To view previous results, use More Actions → View Latest Calculation.

Outstanding Amount Calculations

This section describes the formulas used to calculate outstanding loan amounts and ratios.

Outstanding Amount (Exposure At Default Amount)

Formula: Outstanding Amount = Outstanding Principal + Outstanding Interest

Description: Calculates the total amount currently owed on a loan by summing the remaining principal balance and any accrued interest. This value represents the Exposure At Default (EAD) amount used in risk assessment calculations.

Where:

• outstanding_principal: The remaining principal balance that has not been repaid
• outstanding_interest: The total interest that has accrued but not yet been paid

Example: If a borrower has an outstanding principal of $50,000 and accrued interest of $2,500:

Outstanding Amount = $50,000 + $2,500 = $52,500

Outstanding Ratio (Exposure At Default Ratio)

Formula: Outstanding Ratio = Outstanding Amount ÷ Original Loan Amount

Description: Represents the proportion of the original loan amount that remains outstanding. A ratio of 1.0 means the full loan amount is still owed, while lower ratios indicate partial repayment. This ratio represents the Exposure At Default (EAD) ratio and is converted to a percentage for better readability by users.

Where:

• outstanding_amount: The total amount currently owed (as calculated above)
• original_loan_amount: The initial loan amount at disbursement

Example: If the outstanding amount is $52,500 and the original loan amount was $100,000:

Outstanding Ratio = $52,500 ÷ $100,000 = 0.525

This indicates that 52.5% of the original loan amount remains outstanding.

Finding Loan Probability of Default Amount and Percentage

This section explains how the Probability of Default (PD) amount and percentage are calculated for loans, which are essential components used in the Provision (Expected Credit Loss) calculation.

Probability of Default Amount

The Probability of Default Amount of a loan is calculated as the sum of all payment amounts due for all overdue loan amortizations (monthly payment schedules). This represents the total amount of missed payments that have become overdue.

Calculation Process:

1. The system identifies all loan amortization schedules (monthly payment installments) that are past their due date
2. It sums the payment amounts for all these overdue installments
3. The total represents the Probability of Default Amount

Example: If a loan has three overdue monthly payments of $1,000, $1,000, and $1,200 respectively:

PD Amount = $1,000 + $1,000 + $1,200 = $3,200

Probability of Default Percentage

The Probability of Default Percentage is determined based on the number of days the loan is overdue. The system follows this process:

1. Calculate Days Overdue: The system calculates the total number of days the loan has been overdue based on the oldest overdue payment

2. Match to Risk Classification: The system checks the Risk Classifications (which are Probability of Default classifications) to find the classification that matches the range in which the days overdue falls

3. Assign PD Percentage: The Probability of Default percentage set by the banking institution for that matching classification becomes the Probability of Default percentage for the loan

4. Dynamic Updates: As the loan is paid over time and days overdue decrease, the system automatically recalculates and updates the PD percentage to match the classification corresponding to the new range of days overdue

Example: If a loan is 45 days overdue and the Risk Classifications are:

• Class A: 0-30 days overdue → PD: 2%
• Class B: 31-60 days overdue → PD: 5%
• Class C: 61-90 days overdue → PD: 10%

The loan would be assigned Class B with a PD percentage of 5%. If payments are made and the loan becomes 25 days overdue, it would automatically update to Class A with a PD percentage of 2%.

Usage in Provision Calculation: This Probability of Default percentage is the PD component used in the Provision (Expected Credit Loss) formula: Provision = PD × LGD × EAD

Loan Provision Formula

This section describes the formula used to calculate loan provisions for risk management purposes.

Provision (Expected Credit Loss) Calculation

Formula: Provision = PD × LGD × EAD

Description: Calculates the expected loss provision for a loan based on three key risk components. This formula helps determine the amount that should be set aside to cover potential loan losses.

Where:

• PD: Probability of Default - The statistical likelihood that a borrower will default on the loan
• LGD: Loss Given Default - The percentage of the exposure that will be lost if default occurs
• EAD: Exposure at Default - The total outstanding exposure at the time of default

Example: If a loan has:

• Probability of Default (PD): 0.05 (5%)
• Loss Given Default (LGD): 0.40 (40%)
• Exposure at Default (EAD): $100,000

The provision would be calculated as:

Provision = 0.05 × 0.40 × $100,000 = $2,000

This means $2,000 should be provisioned to cover the expected loss on this loan.

Loan Products Provisions

You can find this feature in the sidebar for easy access

Appears when you have run risk assessment, loss given default analysis, probability of default analysis on all

On this page we only have list of provisions made

Below are steps to be followed to run loan product provision:

1. Go to Loan Products in the sidebar.

2. In the loan products table, locate the product you want.

3. In the Actions column, click the Loan Provisions icon.

4. You will be redirected to a page displaying all provisions for that loan product.

Search Bar

Aspect	Description
Permission	View Loan Provisions
Functionality	Enables users to search for specific risk classifications or provisions by name
Access	Top section of the Loan Provisions page
Platform	System Platform

Table Display

Aspect	Description
Permission	View Loan Provisions
Functionality	Displays a list of all loan provisions or risk classifications with their details
Access	Central table on the Loan Provisions page
Platform	System Platform

View Details Button

Aspect	Description
Permission	View Loan Provision Details
Functionality	Opens a popup or page showing full information of the selected risk classification
Access	Actions column in the Loan Provisions table
Platform	System Platform

Loan Analytics

You can find this feature in the sidebar for easy access

Analytics by Status

Aspect	Description
Permission	View Loan Analytics by Status
Functionality	Displays a breakdown of loans based on their current status
Access	Found in the Loan Analytics section under “Loan By Status Analytics”
Platform	System Platform

Analytics by Products

Aspect	Description
Permission	View Loan Analytics by Product
Functionality	Provides analysis of loan performance grouped by loan products
Access	Found in the Loan Analytics section under “Loan Product Analysis ”
Platform	System Platform

Analytics by Applications

Aspect	Description
Permission	View Loan Analytics by Applications
Functionality	Tracks loan applications over time
Access	Found in the Loan Analytics section under “Loan Applications Analytics ”
Platform	System Platform

Analytics by Collateral Types

Aspect	Description
Permission	View Analytics by Collateral Types
Functionality	Summarizes loan data based on collateral types used
Access	Found in the Loan Analytics section under “Loan Collateral Type Analytics ”
Platform	System Platform

Analytics by Collateral Analytics

Aspect	Description
Permission	View Analytics by Collateral
Functionality	Analyzes performance and approval trends of collaterals
Access	Found in the Loan Analytics section under “Loan Collateral Analytics ”
Platform	System Platform

Loan Notifications Settings

It is found under UBU Console

You can find this feature in the sidebar for easy access

Access Path

From the Sidebar → UBU Console → Settings, you will find three tabs:

1. System Settings

2. Notification Settings

3. All Email Recipients

The Notification Settings tab is where administrators manage notification configurations and recipients.

Notifications Settings

Table Display

Aspect	Description
Permission	View Notification Settings
Functionality	Displays a list of all notification events configured in the system
Access	Main content section of the Notification Settings tab
Platform	System Platform

View Button

Aspect	Description
Permission	View Notification Event Details
Functionality	Opens a detailed view of a specific notification event
Access	Actions column of the Notification Settings table
Platform	System Platform

Filter by Status

Aspect	Description
Permission	Filter Notifications
Functionality	Filters the list of applications based on their status
Access	Located next to the Search Bar
Platform	System Platform

Add Notification Recipients Button

Aspect	Description
Permission	Add Notification Recipients
Functionality	Opens a form allowing users to add new notification recipients for a specific event
Access	Actions column of the Notification Settings table
Platform	System Platform

Add Notification Recipients Popup

When the “Add Notification Recipients ” button is clicked, a popup form appears with two tabs:

Internal User Recipients

Aspect	Description
Permission	Add Internal Notification Recipients
Functionality	Allows selection of internal system users as notification recipients
Access	Tab section within the Add Notification Recipients popup
Platform	System Platform

External User Recipients

Aspect	Description
Permission	Add External Notification Recipients
Functionality	Allows entry of external recipients (non-system users) with their email addresses
Access	Tab section within the Add Notification Recipients popup
Platform	System Platform

Settings Icon (Notification Event Settings Page)

When the Settings Icon is clicked from the Notification Settings table, it redirects to a detailed Notification Event Settings Page containing three tabs:

Notification Event Details

Aspect	Description
Permission	View Notification Event Details
Functionality	Allows selection of internal system users as notification recipients
Access	First tab on the Notification Event Settings page
Platform	System Platform

Notification Recipients

Aspect	Description
Permission	Manage Notification Recipients
Functionality	Lists all internal and external users subscribed to the event, with options to add or remove recipients
Access	Second tab on the Notification Event Settings page
Platform	System Platform

Notification Event Logs

Aspect	Description
Permission	View Notification Event Logs
Functionality	Displays historical records of sent notifications
Access	Third tab on the Notification Event Settings page
Platform	System Platform

All Email Recipients

The All Email Recipients page under UBU Console → Settings allows administrators to manage all users (both internal and external) who receive system notifications or alerts. This page contains two separate tables:

1. Internal Recipients Table – lists users registered within the system.

2. External Recipients Table – lists manually added external recipients.

Each table displays recipient details such as name, email address, type, and status, along with an Actions column containing multiple control buttons.

Internal Recipients Table

Table Display

Aspect	Description
Permission	View Internal Email Recipients
Functionality	Displays all internal system users configured to receive notifications
Access	Main content area under the Internal Recipients section
Platform	System Platform

Table Display

Aspect	Description
Permission	View Internal Email Recipients
Functionality	Displays a list of all notification events configured in the system
Access	Main content section of the Notification Settings tab
Platform	System Platform

View Icon

Aspect	Description
Permission	View Internal Recipient Details
Functionality	Opens a detailed profile view showing recipient’s full information
Access	Actions column of the Internal Recipients table
Platform	System Platform

Activate / Deactivate Button

Aspect	Description
Permission	Manage Internal Recipient Status
Functionality	Enables or disables a recipient’s notification access; inactive users do not receive alerts
Access	Actions column of the Internal Recipients table
Platform	System Platform

Resend OTP Button

Aspect	Description
Permission	Resend OTP to Recipient
Functionality	Resends a one-time password (OTP) to verify or re-authenticate the internal recipient’s email
Access	Actions column of the Internal Recipients table
Platform	System Platform

Verify OTP Button

Aspect	Description
Permission	Verify Recipient OTP
Functionality	Allows administrators to manually verify an OTP sent to the internal user for authentication
Access	Actions column of the Internal Recipients table
Platform	System Platform

External Recipients Table

Table Display

Aspect	Description
Permission	View External Email Recipients
Functionality	Displays all manually added external recipients with details
Access	Main content area under the External Recipients section
Platform	System Platform

View Icon

Aspect	Description
Permission	View External Recipient Details
Functionality	Opens recipient details showing details
Access	Actions column of the External Recipients table
Platform	System Platform

Activate / Deactivate Button

Aspect	Description
Permission	Manage External Recipient Status
Functionality	Enables or disables notification delivery for an external recipient
Access	Actions column of the External Recipients table
Platform	System Platform

Resend OTP Button

Aspect	Description
Permission	Resend OTP to External Recipient
Functionality	Sends or re-sends a verification OTP to the recipient’s email for confirmation
Access	Actions column of the External Recipients table
Platform	System Platform

Verify OTP Button

Aspect	Description
Permission	Verify External Recipient OTP
Functionality	Confirms OTP validation for the external user to activate their notification access
Access	Actions column of the External Recipients table
Platform	System Platform

Comprehensive Formulas Reference

This section provides a complete reference table of all formulas used in the loan management system, from credit line eligibility calculations to risk assessment and provision calculations.

Category	Metric	Formula	Description
Credit Line Eligibility	Growth Score	growth_score = (InflowLastMonth - InflowFirstMonth) / InflowFirstMonth	Measures the growth rate of inflows from the first to the last month
	Average Net Movement	average_net_movement = (Total inflows - Total outflows) / credit_score_months	Calculates the average net cash flow per month over the analysis period
	Mean Inflow	Mean Inflow = (TMI1 + TMI2 + TMI3 + ... + TMIn) / n	Average of total monthly inflows where n is the credit score months
	Monthly Deviation	Xi = TMI(i) - Mean Inflow	Difference between each month's total monthly inflow and the mean
	Squared Monthly Deviations	Xi² = (Xi) × (Xi)	Square of each monthly deviation
	Sum of Squared Deviations	Sum = X1² + X2² + ... + Xn²	Total of all squared deviations
	Mean of Deviation	Mean of Deviation = Sum of Squared Deviations / credit_score_months	Average of squared deviations
	Volatility (Standard Deviation)	Standard Deviation = √(Mean of Deviation)	Square root of the mean of deviation, representing income variability
	Adjusted Income	adjusted_income = mean Inflow - (k × volatility)	Income adjusted for risk, where k is the risk factor multiplier
	Movement Weight	movement_weight = mean Inflow / (mean Inflow + volatility)	Weight factor representing the stability of income flows
	Affordability Capacity	affordability_capacity = ILR × meanInflow	Maximum loan amount the borrower can afford based on income
	Credit Line	credit_line = AdjustedIncome × MovementScore × MovementWeight × RiskFactorMultiplier	Final calculated credit line available to the borrower
Collateral Value	Effective Collateral Value (ECV)	ECV = market_value × (1 - haircut)	Calculates the effective value of collateral after applying a haircut percentage
	Coverage Ratio	Coverage Ratio = ECV ÷ Outstanding Loan Amount	Measures the ratio of effective collateral value to the outstanding loan amount
Outstanding Amount	Outstanding Amount	Outstanding Amount = Outstanding Principal + Outstanding Interest	Calculates the total amount currently owed on a loan
	Outstanding Ratio	Outstanding Ratio = Outstanding Amount ÷ Original Loan Amount	Represents the proportion of the original loan amount that remains outstanding
Risk Assessment and Provision	Provision	Provision = PD × LGD × EAD	Calculates the expected loss provision for a loan based on three key risk components

Formula Abbreviations

• TMI: Total Monthly Inflows on a balance indexing account
• ILR: Inflow To Loan Ratio
• k: Risk Factor Multiplier
• n: Credit Score Months (number of months considered for analysis)
• i: Month index (e.g., month 1, month 2)
• ECV: Effective Collateral Value
• PD: Probability of Default
• LGD: Loss Given Default
• EAD: Exposure at Default