● Set the Internal Controls

● Maximum Exposure to a Client

● Minimum days in arrears before write-off

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Set the Internal Controls

Here you can determine other parameters such as setting a maximum limit for the outstanding loans a client can have, if a client can have multiple active loans or not, if they can be in more than one group and define if fields such as Date of Birth and ID documents are required or optional.

To set these parameters, click on Internal Controls > choose the options that apply > Save the changes.

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Maximum Exposure to a Client

This allows you to define the maximum amount of risk your organization is willing to take when providing loans, by setting a maximum limit for the outstanding loans a client can have. Mambu provides you three options - unlimited, sum of all loans or sum of all loans minus the savings balance.

If you choose to define a value for the Sum of All Loans, this implies that the outstanding balance of all the client's active and active (in arrears) loan accounts can't exceed that amount.

If you determine that the maximum amount will be a value for the Sum of All Loans Minus Savings Balance, this means that you will take into consideration if the client has active savings accounts in your organization. In this case, the risk is lower and choosing this option will serve as an incentive for clients to save, as the higher their savings balance is, the largest loan amounts they can apply for.

Suppose that the Maximum Exposure was set to 12000$ for the sum of all loans. If you try to approve a loan account for a client whose sum of all loans exceeds this amount, you will get a warning message and Mambu will prevent its approval.

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Minimum days in arrears before Write-Off

If your organization's policies determine that a loan can only be written-off after a certain number of days, you can define this period just by entering the number in this field.

This will make sure that only the loan accounts that are in arrears for more than that number of days can be written-off.

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Related Items

• Creating New Loan Products
• Mambu Terminology