Advanced credit product settings

Owned by TurnKey Lender
Last updated: Nov 16, 2022

TurnKey Lender 7.0 comes with significant updates to the payment’s calculations engine. The new functionality can be accessed and used in the settings of a new credit product.

1.Navigate to System → Credit products and click Add new record.

 

2. In the window that opens you’ll see Use advanced mode button. Click it.

3. Confirm that you’d like to proceed to see the advanced credit product settings.

4. The first screen you see allows for specifying the credit product name, selecting the states it will apply to, whether it will be visible to the borrowers or not, and a basic description of the product for internal purposes.

Next up we have 5 tabs with advanced settings.

Schedule billing

In this tab you can fully customize the time, manner and sum of loan repayments:

Payment schedule:

  • Payment period (months)

  • Principal periodicity

  • Whether or not the principle should be included in the equal payment amount

  • Whether the grace period should be applied

Loan offer constraints:

  • Minimum & maximum amount

  • Minimum & maximum loan term

Use interest

  • Decide whether or not interest should be applied

  • Percent or variable interest rate

  • Interest value

  • Calculation basis

  • Base period length

  • Installment period

  • Interval and periodicity

  • When the payment is applied

  • How interest distributes

  • Whether or not interest is included in the equal payment and applied in the grace period

Grace period

This tab allows you to choose whether or not you’d like this credit product to allow for a grace period and if so, how many installments can it last.

Use collateral

This tab lets you specify whether you’d like this loan to support collaterals and the ratio that will dictate the acceptable collateral Loan to Value (LTV).

Peer-to-peer loans

Even if in general you don’t offer peer-to-peer loans, your System may still be able to support this functionality. In this tab, you can enable the P2P option for the loan and specify the terms on which the investors will be able to offer funding.

Due dates

This tab provides functionality for customizing the default start date shift and changing the first due date on the loans generated with this credit product.

 

Commissions

Another major functional block of the new and updated Credit products' section is devoted to commissions.

Here you can give your custom commission a name, select the type of fee and the event that triggers it.

You can also specify the following:

  • Value type

  • Fee value

  • Calculation basis

  • Base period length

  • Fee period

  • Fee interval

  • Periodicity

  • When the fee is applied

  • How the fee will be distributed

  • Whether it will be included in the equal payment

  • Whether it will be applied in the grace period

Click OK to save the changes and exit to the underlying screen.

Payment applying settings

In this section of the credit products' settings, you can select the payment options that fit your current needs (e.g. early payment settings and processing order)

That’s also where you can manage the priority of repayment and accrual.

Here you can also access even more advanced settings (specific for payments)

Here you can set:

  • The rules for days on which payments will be charged

  • Period rounding rules

  • Write-off tolerance

  • Preferable day count convention

  • Balance distribution rules

  • The number of late grace days.

This functionality or a part thereof may not be available in some versions/subscription plans of TurnKey Lender. See Price Plans for details.