Financial Services
Loans
A loan product is a template for the loans you offer. You set it up once — deciding how interest is charged, how often it's repaid, and what limits apply — and then issue loans against it to your members. This page covers how you configure a product. To see a loan move from application to repayment, read the loan lifecycle.
Configurable interest
Interest is the most important setting, and you have full control over it.
The interest method
Choose how interest is calculated. There are three methods:
- Flat — interest is charged on the original amount you borrowed for the whole term, so the interest portion of every repayment stays the same.
- Reducing balance — interest is charged only on the amount you still owe, so it shrinks as you pay the loan down.
- Interest-only — you pay just the interest during the term, and the full principal falls due at the end.
Rate, frequency, and timing
Alongside the method, you set:
| Setting | What you choose |
|---|---|
| Rate | The interest rate, expressed per month or per annum |
| Repayment frequency | How often repayments fall due — weekly, biweekly, or monthly |
| Grace period | An optional gap before repayments begin |
| Rounding | How repayment figures are rounded |
Fees and penalties
On top of interest, a product can carry:
- Fees — charges applied to the loan, such as a processing fee.
- Penalties — extra charges that apply when repayments fall behind. See arrears in the loan lifecycle.
Amount and term guardrails
To keep lending consistent, a product sets minimum and maximum amount limits and term guardrails. Loans issued against the product must stay within these bounds, which stops mistakes and keeps every loan in line with your policy.
Guarantors and collateral
For loans that need backing, you can record guarantors — members or people who stand behind the loan — and collateral — assets pledged as security. These are captured against the loan so you have a full record if repayment ever becomes a problem.
Where to go next
- Loan lifecycle — how a loan moves from application to full repayment.
Last updated 2026-08-12