1. Bilateral Loans
  2. Disbursing a Loan
  3. Loan Disbursement Details
  4. Specifying the Loan Status

4.2.12 Specifying the Loan Status

The status of a loan is indicative of the status of repayments on it. If you have specified automatic status movement for the loan, it is moved automatically to the various statuses as per your definition. However, if you indicated that the status change is made manually on the loan, you can change the status manually in this screen. Even if you have defined a loan with automatic status movement, you can still change the status manually, before the automatic status change is due.

There may be another scenario, where you may have defined a loan with automatic status movement forward and the manual status movement however, in the reverse direction. When the conditions for a loan to be in a particular status no longer exist and, if you have specified manual reverse movement, then you will have to manually move the loan to the appropriate status.

The different status codes applicable to a loan are defined for the product it involves. By default a loan acquires these status codes.

When you are capturing loan disbursement details, the system allots the status of Active by default. You may change it to any of the status codes you have defined.

The following status codes are available:
  1. Active
  2. Past Due
  3. Non-accrual
  4. Write-off
You can move from one status to the other by bypassing an intermediate status. For instance, you can change the status of a loan from Active to Non-accrual by skipping the intermediate status Past Due. If a status change has been defined with a change in the GL, the entries are passed for the GL movement.

Derived Status

The Derived Status is added at loan level which holds the actual status as derived from the rules. This field is used for tracking the intermediate status and normal status processing. User Defined Status displays the worst status of the customer.

The Derived Status field gets populated only if the Group Status Change check box is enabled at Branch level (Loan Parameter) and Customer level. If this is not enabled, 'User Defined Status' shows the actual status and the Derived Status field shows empty.

Parent topic: Loan Disbursement Details