Loan Operations - Frappe Lending

features

Loan Operations

Managing loans should be simple and efficient. Frappe Lending helps you handle everything from loan creation to repayment, ensuring a smooth process for both lenders and borrowers. With automated tracking, accurate accounting, and easy-to-use workflows, you can focus on growing your lending business without the hassle of manual work.

Create and manage loan accounts

Process loan disbursements

Handle collections and repayments

Manage settlements and write-offs

Process loan refunds

Create and manage loan accounts

Every loan starts with an account. In Frappe Lending, creating a loan account is effortless—just select the borrower, choose the loan product, and set the repayment frequency. Whether it's a term loan with fixed EMIs or a flexible line of credit, you can configure every detail, including interest rates, tenure, and moratoriums. Mark loans as secured or unsecured, apply custom terms, and track them in a single, well-structured system.

Process loan disbursements

Once approved, disbursing a loan should be quick and controlled. Frappe Lending helps you track every disbursement, ensuring funds reach borrowers on time while keeping financial records accurate. The system automatically handles disbursement accounting, deducts security deposits if applicable, and ensures all transactions are properly recorded.

Handle collections and repayments

Loan repayments come in different forms—scheduled EMIs, advance payments, prepayments, or settlements. Frappe Lending automates repayment tracking, ensuring collections are allocated correctly across principal, interest, and charges. Payments are recorded in real-time, updating the loan status while keeping financial statements up to date. Whether you're managing standard loans or NPAs, it ensures transparency in every transaction.

Manage settlements and write-offs

Not all loans follow their original schedule. Sometimes, borrowers need a loan settlement, paying off the loan at a reduced amount. Other times, loans become unrecoverable and need to be written off. Frappe Lending provides a structured process for handling these cases, ensuring that settlements, write-offs, and loan closures follow accounting best practices while maintaining complete audit trails.

Process loan refunds

Overpayments, incorrect charges, or special cases may require refunds. Instead of handling these manually, Frappe Lending lets you process refunds directly within the system. Simply select the loan, enter the refund amount, and process the reversal—all while keeping transaction history intact. This ensures clear reconciliation and compliance, reducing operational complexity for your lending institution.