1.1.6 Tracking the Status of a Loan

The Loans module of Oracle Lending, allows you to define the various status, into which overdue loans should move. The module allows a bank to define:

• The number of overdue days from which a loan should be classified under a status
• Whether accruals should be stopped on reaching a status
• Whether accruals should be reversed for a status
• The asset account to which defaulted loans should be transferred (if they are to be reported separately)
• The notices to be generated for the benefit of the customer

Movement of a loan from one status to another can be either automatic, or manual. Loans, both regular and past due, can be tracked, automatically, across several user-defined status. Back dated status change is also supported. The effect of status change is given as on the date mentioned.