Loans

SACCO Loans takes a loan from the member’s application through guarantors, appraisal, the credit committee and disbursement, then follows every repayment against the schedule until the loan is cleared.

In this chapter

• Loan products — The terms of each kind of loan.
• Take a loan application — From the member’s request to a submitted application.
• Guarantors — Add guarantors, record consent, substitute and release.
• Review, appraise and approve — Review, appraisal, the committee’s decision.
• Disburse a loan — From the approved application to money in the member’s hands.
• Record a repayment — Repayments, from cash, the bank, M-Pesa or the member’s savings.
• Arrears and write-off — The overdue list, recovery, write-off.
• Schedules and loan statements — Read a loan and print its schedule and statement.

The road of an application

Status	What happens	Who moves it on
Draft	The request is typed in.	Loan officer: Submit (eligibility is checked here)
Submitted	In the queue under Loans › Applications › Pending Processing.	Loan officer: Start Review
Under Review	Guarantors are added and asked to accept.	Loan officer: Request Guarantors or Start Appraisal
Loan Appraisal	The officer writes the appraisal.	Loan officer: Send to Committee. Credit committee: Approve
Committee Review	Waiting for the credit committee.	Credit committee: Approve
Approved	Listed under Loans › Applications › Approved (Ready to Disburse).	Loan officer: Create & Disburse Loan
Disbursed	The loan exists; the application is finished.	—
Rejected / Cancelled	Closed. A loans manager can Reset to Draft.	—

The road of a loan

Status	What it means	Who moves it on
Draft	Created from the approved application.	Loans manager: Approve
Approved	Ready to pay out.	Loan officer: Disburse
Active	Paid out; the schedule runs and repayments are recorded.	Repayments, Pay Off, Reschedule, Write Off
Completed	Fully repaid. The guarantors are released.	—
Written Off	Given up as a loss.	—