1Loan products live in Settings → Products → Loan Product. Add a product (or open one) to configure every part below. Every loan a member takes copies a product, so these settings shape how the loan behaves and posts.2Terms: set the minimum and maximum loan amount, the tenure (shortest to longest), any grace period and whether interest applies during it, plus savings/share multipliers that cap the loan size.3Interest, Income and Repayments: set the interest rate and calculation method (e.g. Flat or Reducing Balance), how interest is recognised (accrual and when), and the repayment strategy — the order charges, interest and principal are paid.4Guarantors & Collateral and Charges: require a minimum number of guarantors and/or collateral, and attach any processing fees or service charges (define charges first under Product Setup → Fee & Penalties).5Loan Product Stages: the approval workflow. Each stage shows its default role and assignee — who handles the loan at each step before it is disbursed.6Accounting Settings: map each posting bucket — Loan Portfolio, Accrued Interest, Income From Interest, Expenses/Losses Written Off, Overpayment, Loan Suspense and Income from write-off — to a Chart of Accounts ledger. Then Save and set the product Active.
Set up a loan product
The template behind every loan — amounts, interest, repayments, guarantors, charges, approval stages and accounting.
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Summary
Set up a loan product — the reusable template that every member loan is built from.
A product controls the loan's amount range, interest, repayments, guarantors, charges, the approval workflow and the ledgers it posts to. Get it right and every loan built from it behaves correctly.
About 15 minutes · 12 steps. This is a large, multi-part setup. Also called: loan type, loan scheme, credit product.
Note: Set up the connected pieces first — your Chart of Accounts ledgers, any fees, and the interest rate — because you select them while building the product. See Prerequisites.
Prerequisites
A CAMS Admin sign-in with rights to manage products (Settings > Products).
Your Chart of Accounts ledgers already created — you map the product to them in Accounting Settings. See How to set up the Chart of Accounts.
In the left menu, go to Settings > Products. The Product Setup screen opens on the Loan Product tab, which lists your products with their Name, Interest Rate, Loan Amount and Tenure.
Start a new product with the add (+) action on the Loan Product tab. Give it a clear Name, a short Description, and choose the Loan Type (for example Business Individual Loans). You set the rest in the sections below, and you will see the same sections when you open an existing product to review it.
Terms. Set the Minimum and Maximum Loan Amount and the Tenure Period (shortest to longest). Add any Grace Period (and whether interest applies during it), plus a Multiplier on Savings/Shares if the loan size is capped by what the member holds.
Interest. Set the Interest Rate and the Interest Rate Calculation Method — for example Flat (interest on the original amount) or Reducing Balance (interest on the amount still owed).
Income. Choose how interest is recognised in your books: the Configure Type (for example Accrual) and when it accrues (for example On Due Date).
Repayments. Choose the Repayment Strategy — the order in which charges, interest and principal are paid off. Then set how advance payments are handled, non-working-day handling, and any interest recalculation or compounding rules.
Guarantors and Collateral. Set whether the loan needs guarantors and the Minimum Number of Guarantors, plus any Collateral Type and Collateral Ratio the loan must be secured with.
Loan Product Charges. Attach any processing fees or service charges that apply to this product. If a charge is not listed, add it first under Product Setup > Fee & Penalties, then come back.
Loan Product Stages. Review the approval workflow. Each stage (for example Fee & Payments or Funding) shows a Default Role and Default Assignee. That is the person who handles the loan at that step before it is disbursed. Set them to match who approves loans in your SACCO.
Accounting Settings. Map each posting bucket to a Chart of Accounts ledger so the loan posts correctly. Set the Loan Portfolio Account, Accrued Account (accrued interest), Income From Interest, Expenses/Losses Written Off, Overpayment Account, Loan Suspense Account and Income from write-off.
Note: Map each bucket to the right account type — Portfolio, Accrued and Suspense are Assets, Income From Interest is an Income ledger, Write-off is an Expense, and Overpayment is a Liability. The wrong type posts the loan to the wrong place.
Check your entries, then Save the product and set its Status to Active so loan officers and tellers can pick it for new loans. It now appears in the Loan Product list.
Common pitfalls & FAQ
There is no add (+) button on the Loan Product tab. Your sign-in may be view-only for products. Ask an administrator to grant you product rights, or to create the product for you.
I cannot pick a ledger in Accounting Settings. The ledger has to exist in your Chart of Accounts first. Create it there, then return to the product. See How to set up the Chart of Accounts.
Which interest method should I use?Flat charges interest on the original amount every period; Reducing Balance charges on the balance still owed. Pick the one your product policy requires.
The charge I want is not in Loan Product Charges. Define it under Product Setup > Fee & Penalties first, then add it to the product.
Officers cannot see the product on a new loan. Check that its Status is Active.
My loan postings look wrong. Re-check Accounting Settings — a bucket mapped to the wrong ledger, or the wrong ledger type, sends entries to the wrong place.
Also called: loan type, loan scheme, credit product.
