Loan Transaction

Loan Transaction, is a financial transaction in which one party (the lender) agrees to give another party (the borrower) a certain amount of money with the expectation of total repayment. The lender can ask for interest payments in addition to the original amount of the loan (principal). The borrower must agree to the repayment terms, including the amount owed, interest rate and due dates. Some lenders can also assign financial penalties for missed or late payments. Because a loan can contain many hidden costs such as interest payments and finance charges, many people tend to avoid applying for one until it becomes absolutely necessary. Purchasing a new vehicle or building almost always necessitates some form of financial loan, whether it is a bank mortgage or a private loan with the seller. Financing a higher education may also require a federally-backed student loan. Interest rates on these types of large loans can be fixed at the time of the application or may vary according to the federal prime interest rate.

Feature Highlights

• Maintain loan details,interest rates, record loan receipts

• Recording of loan liabilities for auto generation of provisional/write off entries

• Processing of loan repayments

List of Activities