What are loan products
Loan products refer to the various categories of loans you provide to your borrowers. Each product specifies the type of loan, the amount range, applicable interest rate, and the range of tenor available. As a lender, you can create multiple loan products tailored to different segments of your target market, which borrowers can access through the web or mobile app. For example, you might create a “Salary Advance” loan that lets employees borrow between $300 and $1,000 and pay it back within one month at a 2% interest rate.
Setting up a loan product
Setting up loan products correctly is crucial for ensuring smooth lending operations and a seamless customer experience. This section provides a comprehensive guide on configuring loan products within the admin console. Whether you’re defining interest rates, setting repayment terms, or customizing fees, we’ll walk you through every step of the process.
From creating new loan products to managing existing ones, you’ll learn how to tailor loan offerings to fit your business needs. We’ll cover essential settings such as loan types, disbursement methods, repayment schedules, amongst others.
You’ll also be able to set rules around loan amounts, tenors, interest structures, determine the types of fees that should apply, and edit the attributes of the product. This guide ensures that each loan product you set up is clearly defined and aligned with your lending strategy.
Imagine you run a small lending business that helps salary earners cover urgent expenses before payday. You can quickly create and activate a loan product, and once it’s live, eligible borrowers can log into your mobile or web app, apply for the loan, and get funds instantly. This section empowers you to build loan products that are not only easy to manage but also scalable, compliant, and user-friendly.
More information regarding configuring your loan products can be found here.
Also read: Effective strategies to market your loan products