Setting Loan Limits for Tiers

When you set loan limits based on tier, the limit is based on the member’s primary tier.

You set the limit in two ways:

• Absolute value. Specify the maximum number of points that members in this tier can borrow.

• Percent of point balance. Specify the number of points that members in this tier can borrow the percentage of the member’s outstanding point balance.

You use the Basis field to specify whether the loan allowed is the maximum or the minimum of these two limits. You can select the maximum so members with a very low point balance or no point balance can still borrow the amount specified as the absolute value. Or you can select the minimum so members with a high point balance cannot borrow too large a number of points.

For example, you specify the absolute value of the loan limit for the gold tier at 3,000 points. You also set the loan limit for the gold tier at 20% of the point balance, so a member who has accumulated 10,000 points can borrow 2,000 points. If you choose Maximum in the Basis field, then the member with 10,000 points can borrow up to 3,000 points, and if you choose Minimum in the Basis field, then the member with 10,000 points can borrow up to 2,000 points.

To set loan limits for tiers

1. Navigate to the Loyalty Program Administration screen.

2. Click the Program ID field of the loyalty program that you want.

3. Click the Loans view tab.

4. In the Loans list, add a new record for each combination of point type and tier where you want to allow loans, and complete the necessary fields, described in the following table.

   Field	Description
   Tier Class	Select the tier class of the tier whose members are allowed to borrow.
   Tier	Select the tier whose members can borrow.
   Point Type	Select the point type that members can borrow.
   % Point Balance	Enter the percent of point balance that is the limit for the loan of this point type to members in this tier.
   Absolute Loan Value	Enter the absolute value that is the limit for the loan of this point type to members in this tier.
   Basis	This field determines whether the member can borrow the greater or lesser of the values specified in the % Point Balance and Absolute Loan Value fields. Select Maximum to allow members to borrow the greater of the two values, or select Minimum to allow the lesser of the two values.