📁 File 3 of 4

🏦 NBFC Loan Management System

Module: EMI Collection, Overdue/NPA Tracking, Accounting/GL & Loan Closure

📅 EMI Schedule 💰 EMI Collection 🧾 Receipt 🏧 Disbursement ⚠️ Overdue/NPA 📊 Provisioning 📒 Accounting/GL 🔒 Day Closing ✅ Loan Closure 🏁 Foreclosure 🔨 Auction
ℹ️ Developer Note: All financial transactions must generate double-entry GL entries automatically. Manual GL entries require Maker-Checker. Every receipt must update: EMI Schedule status, Loan Outstanding, Branch Cash/Bank balance. Receipts cannot be deleted — only reversed (with reason + approval).
📅

Form 1: EMI Schedule (Auto-Generated)

System → Auto-Generated after Sanction | Table: tbl_emi_schedule | Read-only view for users
🔧 Dev Note: EMI schedule is system-generated — users don't fill this form, they VIEW it. Generated when loan status moves to SANCTIONED. Table: tbl_emi_schedule(loan_id, emi_no, due_date, principal, interest, total_emi, balance_outstanding, status, paid_date, paid_amount). Status values: PENDING / PAID / PARTIALLY_PAID / OVERDUE / WAIVED. Re-generate schedule if prepayment or interest rate change occurs.
EMI # Due Date Principal (₹) Interest (₹) Total EMI (₹) Outstanding (₹) Status Paid Date
1 01-Mar-2024 4,200 1,000 5,200 95,800 PAID 01-Mar-2024
2 01-Apr-2024 4,250 950 5,200 91,550 PAID 30-Mar-2024
3 01-May-2024 4,300 900 5,200 87,250 PENDING —
4 01-Jun-2024 4,350 850 5,200 82,900 PENDING —
5 01-Jul-2024 4,400 800 5,200 78,500 PENDING —
💰

Form 2: EMI Collection / Receipt Entry

Cashier / Loan Officer → Collections | Table: tbl_receipts, tbl_emi_schedule
🔧 Dev Note: On saving receipt: (1) Update tbl_emi_schedule EMI status to PAID/PARTIALLY_PAID. (2) Create GL entry: Cash/Bank Dr → Interest Income Cr + Loan Portfolio Cr. (3) Update loan outstanding. (4) Log in audit trail. URT (Unique Reference Transaction) number required for online payments to prevent duplicate entry. Receipt Number format: [BRANCH_CODE]-RCP-[DATE]-[SEQ].
📌 Auto-fills customer name, outstanding, next due EMI
📌 Must be within current active Financial Year
📌 System suggests next pending EMI. User can override for advance payment.
📌 If less than EMI → PARTIAL. If more → excess goes to next EMI or advance.
📌 Drives GL account: Cash A/c or Bank A/c gets debited
📌 MANDATORY for online modes. Duplicate URT check to prevent double-entry.
📌 Required if payment mode = Cheque or DD
📌 For post-dated cheques — alert if date is future
📌 Used in field officer collection report
📌 System auto-splits received amount into Principal + Interest + Penal
📌 Goes to: Penal Income GL A/c
📒 Auto GL Entry on Receipt Save: Cash / Bank A/c         Dr  ₹ [Amount]
    To Interest Income A/c           Cr  ₹ [Interest]
    To Loan Portfolio A/c            Cr  ₹ [Principal]
    To Penal Income A/c (if penal)   Cr  ₹ [Penal]
🏧

Form 3: Loan Disbursement

After Sanction → Disburse Loan Amount | Requires Approval (Maker-Checker)
🔧 Dev Note: Disbursement changes loan status to ACTIVE. Processing Fee deducted from disbursement amount before transfer. Net disbursed = Sanctioned Amount − Processing Fee − Insurance Premium (if any). GL entry: Loan Portfolio A/c Dr → Bank/Cash A/c Cr. Processing Fee: Bank A/c Dr → Processing Fee Income A/c Cr. Table: tbl_disbursements. Black/White flag stored here.
📌 Deducted from disbursement. Goes to Processing Fee Income GL.
📌 Actual amount transferred to customer bank account
📌 First EMI due date = Disbursement Date + EMI Frequency
📌 Store for reconciliation and audit trail
📌 Black entries visible only to users with "Can View Black Data" permission
📒 Auto GL Entry on Disbursement: Loan Portfolio A/c        Dr  ₹ [Sanctioned]
    To Bank / Cash A/c          Cr  ₹ [Net Disbursed]
    To Processing Fee Income   Cr  ₹ [Processing Fee]
⚠️

Form 4: Overdue Tracking & NPA Classification

System Auto-runs Daily | Manual Review via Dashboard | Table: tbl_loan_npa_status
🔧 Dev Note: NPA classification runs as a daily scheduled job. DPD (Days Past Due) = Today − EMI Due Date (for unpaid EMIs). Update tbl_loan_accounts.npa_status and tbl_loan_accounts.dpd daily. Penal interest auto-accrues: Penal_Amount = Outstanding × Penal_Rate% / 365 × DPD. Provisioning percentages are regulatory — store in config table.
📊 NPA Classification Rules
DPD Range Classification Provisioning % Action Required
0 days Standard Asset 0.25% No action needed
1 – 30 days Regular 0.25% SMS reminder to customer
31 – 60 days SMA-1 0.25% Field visit + escalation to BM
61 – 90 days SMA-2 0.25% Legal notice + recovery planning
> 90 days NPA 10% – 100% NPA provisioning + recovery action
> 90 days (Sub-standard) Sub-Standard 10% Loan tagged NPA in all reports
> 12 months NPA Doubtful 25% – 100% Legal recovery proceedings
🔍 Overdue Search / Dashboard Filter
📌 DPD calculated as of this date
📊 Provisioning Entry (Accountant)
🔧 Dev Note: Provisioning entries are monthly Journal Entries in GL. Formula: Provision_Amount = Outstanding × Provision_Rate%. GL Entry: Provision for Bad Debts A/c Dr → NPA Provision Reserve A/c Cr. This is separate from NPA classification — classification is auto-daily, provisioning is monthly manual/auto entry with checker approval.
📒 Provisioning GL Entry (Monthly): Provision for Bad Debts A/c   Dr  ₹ [Amount]
    To NPA Provision Reserve A/c   Cr  ₹ [Amount]
📒

Form 5: Chart of Accounts (COA) & Manual GL Entry

Accountant / HO Admin → Accounting Module | Table: tbl_chart_of_accounts, tbl_gl_entries
🔧 Dev Note: COA is the master of all GL accounts. Standard accounts must be pre-seeded on setup. Manual entries MUST go through Maker-Checker. Financial Period locking prevents entries in closed periods. Every GL entry needs: Dr account, Cr account, amount, narration, date, FY_ID, Branch_ID, transaction_type, user_id, checker_id. Use double-entry validation: Dr total must = Cr total.
📋 Key GL Accounts (Pre-seeded)
Ledger Name Alias Ledger Group Normal Balance Remark
Loan Portfolio A/c LOAN_PORT Assets Debit Total outstanding loan portfolio
Interest Income A/c INT_INC Income Credit Interest collected from borrowers
Interest Accrued A/c INT_ACC Assets Debit Interest earned but not collected (for tenure-end schemes)
Processing Fee Income A/c PROC_INC Income Credit Fee deducted at disbursement
Penal Income A/c PENAL_INC Income Credit Late payment charges
Cash A/c CASH Assets Debit Branch cash in hand
Bank A/c BANK Assets Debit Current bank account of branch
NPA Provision Reserve NPA_PROV Liabilities Credit Provisioning for bad loans
Provision for Bad Debts PROV_BAD Expenses Debit P&L charge for NPA provisioning
Deposit Liability A/c DEP_LIAB Liabilities Credit Amount received from depositors
Interest Payment A/c INT_PAY Expenses Debit Interest paid to depositors
✍️ Manual Journal Entry Form
📌 Must be in open financial period. Locked periods rejected.
📌 Printed in Day Book, Ledger. Be descriptive.
🔒

Form 6: Day Closing / Branch Balancing

Branch Manager → End of Day | Must be done before next business day starts
🔧 Dev Note: Day Closing locks all transactions for the selected date at branch level. After posting lock, no new entry allowed for that date. During closing: (1) Cash balance verified. (2) Branch balance checked (all debits = credits). (3) Day Book generated. Store closing data in tbl_day_closing(branch_id, closing_date, cash_physical, cash_system, difference, status, closed_by).
📌 System-calculated. Total cash inflows − outflows for the day.
📌 Branch Manager physically counts and enters this value
📌 If non-zero: generates shortage/excess alert to HO
📌 All Dr = Cr. If unbalanced: cannot close until resolved.
✅

Form 7: Loan Closure (Normal)

After all EMIs cleared → Mark loan as CLOSED → Generate NOC | Table: tbl_loan_accounts status=CLOSED
🔧 Dev Note: Normal closure: all EMIs paid → system auto-flags eligible for closure. Checker approves closure. On closure: (1) Loan account status = CLOSED. (2) Guarantor restriction released. (3) Gold Loan: locker released, packet returned — log in inventory. (4) NOC letter generated with PDF. (5) GL: any remaining balance adjustment entry passed.
📌 On Yes: guarantor can now take new loan
📌 Locker status returns to AVAILABLE in inventory
🏁

Form 8: Foreclosure / Pre-payment

Customer wants to close loan before tenure end | Requires Approval
🔧 Dev Note: Foreclosure calculation: Outstanding_Principal + Accrued_Interest + Penal_Charges + Prepayment_Charges − Rebate = Foreclosure_Amount due. Prepayment charges % from scheme config. Rebate = discretionary (checker-approved). After payment received → normal closure process triggered.
📌 Interest from last EMI date to foreclosure date
📌 From scheme config % applied on outstanding principal
📌 Requires checker approval. Credited to customer and reduces total payable.
📌 = Principal + Interest + Penal + Prepayment − Rebate
🔨

Form 9: Auction Management (Gold Loan NPA)

HO / Branch Manager → For Gold Loans in NPA → Auction Process
🔧 Dev Note: Auction is only applicable for Gold Loans where DPD > threshold (configurable, typically 90+ days). Steps: (1) Generate Eligible for Auction report. (2) Send notice to customer (log notice date). (3) After notice period: conduct auction. (4) Enter bid/sale amount. (5) Calculate surplus (sale − outstanding = refund to customer) or shortfall (outstanding − sale = still recoverable). (6) Update loan account accordingly. Table: tbl_auction.
📌 Legal notice date. Auction can only proceed after notice period is over.
📌 Actual amount received from auction
📌 Surplus: refund to customer. Shortfall: still recoverable from customer.
📁 File 3 of 4 — NBFC LMS Documentation Forms  |  ➡️ Continue to File 4: Reports, MIS, MFI Module & System Utilities