Consumer Loan 

Definition

The product category Consumer Loans (340) classifies small, short-term loans granted to private individuals for the financing of consumer goods such as cars, televisions and furniture. You can use product types and products to map these loans according to your own company-specific requirements.

You can only post loans from this category to customer accounts. This means that there must be a customer account for the loan partner in Financial Accounting.

You can only use this product category for loans given.

Structure

Consumer loans can have the following statuses in Loans Management.

·        No status

You can store a loan without status, in other words, as a model calculation.

For more information, see Model Calculation.

·        Application

·        Contract offer

·        Contract

A loan from the category Consumer Loan (340) consists of the following parts:

·        Model calculation

The model calculation comprises data for the following areas:

¡        Capital Amounts

¡        Interest

¡        Installment

¡        Term

¡        Credit life insurance

¡        Condition-determining parameters

The model calculation is used as a basis for a loan contract. The values from the model calculation are proposed or pre-defined by the underlying product and the model calculation assigned to it. For more information, see Product, Condition Table and Condition Assignment.

You can create up to 99 model calculations per business partner. A model calculation can cover several alternative versions that you can compare. You can use a model calculation as the basis for more than one loan.

You can define the fields covered by the model calculation yourself. For more information, see Changing the Contract Interface.

·        Model Comparison

The model comparison contains the existing versions of a model calculation and compares these clearly in a table. You can print out the model comparison and give it to the interested party to take home with them. The interested party can compare the data in the different versions, such as the installment amount, term, and effective interest and can decide for one of the versions. You use this version as the basis for the contract.

·        Installment Plan

Every time you execute a model calculation, whether you are creating a model calculation, changing the installment plan, or executing certain business operations, the system recalculates the installment plan for the loan. This contains the data for the regular repayment of a loan:

¡        Amount of the regular payment installments

¡        Number of payment installments

¡        Date of the installment payment (which day of the month)

¡        Due date of the next installment due

¡        Settlement installment (Amount of the final installment to be paid)

¡        End date for the loan term

¡        Term of the loan in months

¡        Original term in months

¡        Maximum term permitted in months

You can make specific changes to the installment plan if the borrower would like to increase or decrease the payment installment or change the day on which the installment is paid, for example. For more information, see Changing the installment plan.

·        Contract

The Contract tab page is relevant once the loan has reached status Application.

The contract comprises the following data:

¡        Contract header

Partly from the model calculation and the installment plan:

§         The underlying product

§         The amount of the premium for credit life insurance

§         The amount of the contract conclusion charge

§         Total loan amount

§         Net loan amount

§         Amount of the regular payment installments

§         Nominal interest rate

§         Effective interest rate

§         End date for the loan term

¡        Contract parameters 1, 2 and 3 that you have defined to meet your company-specific requirements.

For more information, see Changing the contract interface.

¡        Attachments to the contract

§         Main Borrower

§         Settlement

§         Disbursement

§         Document Folder

§         Insurance

§         Supplementary collateral

§         Other Partners

·        Credit life insurance

The credit life insurance (CLI) is an attachment to the loan contract. You will find it on the Attachments section of the Contract tab page. The borrower can conclude a credit life insurance contract in connection with the loan contract. A credit life insurance secures the remaining debt of the loan amount in the event of the death of the borrower (or other persons, if appropriate). The borrower can also insure for cases of occupational disability and/or unemployment.

The settings in the underlying product specify whether or not a CLI is possible and/or obligatory.

Integration

You define the product types that are based on this product category and make the basic settings for the loans in this product category in the implementation guide (IMG) for Loans Management.

In the SAP Easy Access screen, under Current Settings, you define the products that you assign to the product types and the condition tables that you assign to the products. For more information, see Current Settings