About Loan Accounts

A loan account is an instance of a loan product. It has:

• A unique account number
• A specific interest rate
• A sole owner (individual client or group)

Creation Conditions

✔ Only available for:

• An active client/group
• An active loan product at the time of submission

Rule Inheritance

Upon creation, the loan account:

• Inherits the default rules and settings of the associated loan product
• May partially modify these rules (depending on the product configuration by your financial institution)

Account Lifecycle

Represented in the Phenix loan lifecycle diagram
Statuses are visualized by color codes in the Phenix interface

Previous Status	Action/Transaction	New Status
N/A	Create a loan	Pending Approval
Pending Approval	Add loan fees	Pending Approval
Pending Approval	Approve	Approved
Pending Approval	Modify request	Pending Approval
Pending Approval	Reject	Cancelled (Rejected)
Pending Approval	Assign manager	Pending Approval
Pending Approval	Client withdrawal	Cancelled (Withdrawn)
Pending Approval	Delete	N/A
Pending Approval	Add collateral	Pending Approval
Pending Approval	Add guarantor	Pending Approval
Approved	Assign manager	Approved
Approved	Disburse	Active
Approved	Disburse to savings account	Active
Approved	Cancel approval	Pending Approval
Approved	Add loan fees	Approved
Approved	Add guarantor	Approved
Active	Add loan fees	Active
Active	Early repayment	Active if balance > 0
Closed (Obligation Met) or Closed (Overpaid) if balance ≤ 0
Active	Repayment	Active if balance > 0
Closed (Obligation Met) or Closed (Overpaid) if balance ≤ 0
Active	Cancel disbursement	Approved
Active	Remove interest	Active
Active	Write-off	Closed (Written Off)
Active	Close (rescheduled)	Closed (Rescheduled)
Active	Close	Closed (Obligation Met) or Closed (Overpaid)

Table of Contents

Loan Request Creation and Management

• Create a loan account request
• Loan account fields
• Modify a loan account request
• Approve a loan account request
• Reject a loan account request
• Withdraw a loan account request
• Delete a loan account request

Loan Account Operations

• Make repayments on an individual loan account
• Make repayments on a group loan account
• Track loan performance history
• Add fees to a loan account
• Add collateral to a loan account
• Add/Remove/Modify a guarantor for a loan account
• Manage loan account disbursement

Advanced Loan Management

• Use a recovery sheet or other payment types
• Remove interest from a loan account
• Write off a loan account
• Close a loan account (rescheduled)
• Close a loan account
• Make an early loan repayment

Specialized Features

• Create a group loan account
• Process bulk JLG loan requests
• Generate a loan transaction report
• Reschedule a loan
• Apply variable interest rates
• Configure flexible installments
• Recalculate interest for a new loan

Tranche-Based Loan Process

• Loan with variable duration based on borrowing cycle
• Hold guarantee funds

Loan Account Status Indicators

🟢 Green Status: Active loan in good standing (repayments as per contract)
🔴 Red Status: Active loan in default (payment delays or anomalies)

Group Loan Accounts

There are three main types of group loan accounts:

1. Standard Group Loan
   A group loan account is a single loan shared by all group members. Each member is jointly responsible for repayment. The financial institution treats the group as a single entity.

Use Cases:

• Bank linkage programs (e.g., loans to SHGs in India)
• Solidarity microcredit

2. JLG Loan (Joint Liability Group)
   A JLG account belongs to an individual client who is a group member. While the client is primarily responsible for repayment, the group collectively guarantees the loan.

Specifics:

• Inspired by the Grameen methodology (center/group-based lending)
• Key difference vs individual loan: Appears in group recovery sheets

3. Bulk JLG Loan
   Bulk JLG allows assigning the same JLG loan to multiple group clients simultaneously.

Key Features:

• Shared fields (loan officer, submission date)
• Client-specific fields (amount, term)
• Optimized for mass operations (e.g., 50 farmers in a cooperative)

Example:
An “agricultural equipment” loan applied to 20 members, with individually adjusted amounts.

Early Loan Repayment

Early repayment allows a client to fully settle their loan before maturity. During early repayment:

• The client pays the remaining principal + accrued interest
• The loan account is automatically closed after payment

Loan Account Repayment

Phenix allows individuals and groups to make loan repayments.

1. Individual Repayment
   Records payments for:

• Client loans
• Group loans
• JLG loans

Accepted Payment Methods:

• Cash or equivalent negotiable instruments
• One-time transfer from savings account to loan account
• Standing order (automatic debit on a defined schedule)

2. Group Repayment
   Exclusively for group and JLG loans, via:

• Recovery sheet (group processing methodology)

3. Status Change
   Once the loan is fully repaid (regardless of payment method):

• Initial status: Active
• New status: Closed (Obligation Met)

Related Guides

• How to make a repayment on a client loan account
• How to make a repayment on a group loan account
• How to make a repayment on a JLG loan account
• How to settle a client loan early