Overview
The Loan management process is the long-running flow that manages an issued loan from the moment it appears in the system until it is fully repaid, closed, or written off. While the loan origination flow handles “should we lend” decisions, Loan management handles “what happens with the loan every day after we lend”.
The system provides two types of Loan management according to the two product types:
| Aspect | Fixed-term loan | Credit line |
|---|---|---|
| Money is given… | as a single disbursement at the start | gradually, on each drawdown the borrower requests |
| Repayment | fixed schedule of installments | flexible, pay back what was drawn during the billing cycle |
| Term | defined maturity date | revolving until drawdowns are frozen near maturity |
| Interest base | accrues on the principal balance | accrues on the outstanding drawn balance |
| Schedule | full amortisation schedule (annuity, linear, payday) | billing cycles (start, closing, payment date) |
Both types share the same daily schedule:
- a midnight job recalculates interest and updates the loan snapshot;
- a 03:00 AM job checks whether today is a payment day and, if so, kicks off the scheduled payment;
- borrower-initiated and credit-officer-initiated operations (write-off, register payment, waive fees, adjust loan, drawdown) feed events into the loan;
- each event produces a new immutable loan snapshot — the financial picture at that point in time.
What differs is type-specific bookkeeping: fixed-term loans recalculate the amortization schedule when the rate or terms change; credit lines open and close billing cycles, and check the drawdown freeze date.