QFundTM provides a complete solution for managing the Payday loan transactions for loans that are disbursed to borrowers in return for checks drawn on the lending company.
Following are the various transactions that are possible for managing Payday loans:
- Loan - Disbursement of a New Loan through various modes such as Cash, Checks, Debit cards, and ACH.
- Partial Payment - Payment in partial sums with the ability to calculate rebates and pro-rate the payments
- Paid-in-Full - Payment via - Cash, Cashiers Checks, Money Orders and Checks for total amount to close the Loan
- Deposit Check - Deposit of Borrowers Check in the Stores Bank
- Return Check Prepayments - Payments made by borrower after the Check Deposit Clear Check - Marking of Deposited checks as Cleared Checks
- Refund - Refund of excessive amount collected from the borrower via Cash / Check
- Return Check Payments - Payments made by borrower after the Check marked as NSF
- Post Court Filing Payments - Payments after the Court filing of borrowers
- Post Judgment Payments - Payments after
- Write-off - Write-off loans that cannot be recovered
- Write-Off Recovery - Payments against the written-off loans
- Rollback - Time bound Rollback/Void for all the transactions in the application and use of an encryption code for Rollbacks beyond the timeline
- Bank Deposit transactions enable depositing checks for redeposit and received as Garnishment Payment
QFundTM supports issue of loan products with multiple loan payment schedules, i.e., installment loans. QFundTM allows the authorized user to process an installment loan once a customer applies for a loan or the details are captured and the customer evinces interest in taking up the loan. QFundTM has interfaces on the storefront which enables store users to disburse new installment loans and record receipt of payments against each installment due.
There are two types of Installment loan:
- Simple Interest based loan - The installment interest is to be calculated on the different days of last payment date and the current processing date.
- Fixed Interest based loan- The installment interest has to be calculated on the diff days of last Installment due date and the current installment due date
The APR is calculated based on Loan Amount, Interest Rate, Duration, Frequency, No. of Installments, End of Month and Next Payment date. It automates the APR calculations based on the values of Frequency, Duration, Loan amount, Interest rate and the first payment date.
The No. of installments is calculated based on the values selected for the Installment Duration, Frequency, End of Month and First Payment date
- Two types of Installment Loans – Simple Interest based loan / Fixed Payments (Pre-computed) based loan
- Minimum Decision Points for CSR – Rules in the application address most of the parameters
Multiple Collateral Types - Supports receipts of multiple checks as collateral against loans disbursed
- Number of installments auto computed by considering the Loan Term desired and the Income Frequency of the borrower
- Schedule of loan to be disbursed calculated based on Interest rate configured in the rules engine
- Alternate first payment date feature available in the application
- First payment date auto populated based on borrower’s next pay date
- End of Month options available for Monthly & Semi-Monthly frequencies
- Auto computation of revised check amount
- Rebate for early payoff guided by rule
- Refinance applicability for a store / state – controlled by a rule "Allow Refinance"
The list of Installment Loan related transactions that can be conducted are:
- Installment Loan/ Advance- New or existing borrowers can apply for an installment loan-
- Installment Payment - Borrowers can make partial payment against a loan, the payment amount can’t be less than the regular EMI. (For loan type as Simple the revised check amount equals the balance principal amount whereas for loans of type Fixed the revised check amount should be the balance principal amount plus the Interest for the next payment period.)
- Early Payoff - Borrowers can make full payment against a loan.
- Deposit- The solution automatically provides deposit transaction for the collateral check, if n payments are due and the grace period is elapsed.
- Clear Deposited Check - This indicates that the check that was deposited by has been honored by the Borrower’s bank.
AUTO EQUITY LOAN
QFundTM covers functionalities related to Auto Equity loan that can be provided to Borrowers. For any Borrower to avail this loan, they must be registered with QFundTM.
- It allows the CSR to capture the Vehicle Condition details to find out the qualified loan amount.
- Any borrower’s loan amount is restricted by the amount he gets qualified to after running Tele-track.
- Transfer of title from the borrower’s name to the lending company, with daily alerts provided for pending transfers or alerts on pre-configured rules.
Controls in the application:
The various controls that are verified & affected by the application during the life cycle of an Auto Equity Loan are:
Controls for automating functions a couple of critical functions during the lifecycle of a loan
- APR definition
- Fee configuration for all fees applicable
- No. of missed installments before a notice letter is sent
- Late fee grace period, if applicable
- Collection notice days
- Refund applicability
The application is controlled by the following status codes which determine loan applicability
- Customer status code
- Loan status code
- Title status code
- AEL Collection Status
- AEL Loan- New or existing borrowers can apply for a loan.
- Installment Payment - Borrowers can make their payments in installments.
- Early Payoff - Borrowers can make full payment against a loan.
- eposit- The solution automatically provides deposit transaction for the collateral check, if n payments are due and the grace period is elapsed.
Line of Credit (Secured / Unsecured)
QFundTM supports both secured and unsecured Line of Credit (LoC). The system allows authorized users to process a new LoC based on customer application online or at the store. Both secured and unsecured loans may be
- For fixed terms or with no limitation to term
- Revolving or not revolving
The product is completely configurable and supports co – borrower support, has configurable payment due cycle days, supports auto/manual closure of line. It can also support configurable statement formats and statement days.
Salient features of this product are as below and all of them can be configured in the system based on the business or regulatory needs.
- The Customer shall be verified for certain underwriting requirements.
- The customer shall be allowed to take any number of disbursements up to a specified authorization limit with the Limit/ Maximum Amount
- The LoC may have a fixed component of fee being charged at the time of loan processing and a variable component i.e. interest rate being charged on simple interest basis.
- The customer has to make minimum payment on or before due date with the late fee being charged based on the pre-configured values in case of default in payment.
- Statements will be sent to the customers at the end of each billing cycle, similar to credit card statements, usually spanning up to a month starting from the date loan is processed.
- Customer will be defaulted over predefined number of non-payments. This will later be charged off.
- The Charge-Off process can either be Manual or Auto process.
- Once the customer account is defaulted, the monthly billing statements will be stopped thereafter and automatically stops incurring finance charge.
- Line of credit min and max loan amounts are configurable business rules.
- Payments – System will generate a monthly billing statement for the customer showing account information including loan disbursements, accrued Finance charges, New Balance and Minimum payment due.
- Customer must pay at least Minimum Payment Due shown in the statement on or before the payment due date indicated in the Statement.
- Minimum payment shall include finance charge accumulated through the end of billing cycle.
- Minimum payment includes (%) of principal balance of the loan outstanding on the customer account. (%) is configurable business rule.
- Minimum Payment will also include any late payment fees or other amounts previously due and outstanding on customer account.
- Customer has option to pay more frequently and pay more than Minimum Payment due.
- Customer has option to pay-off the balance at any point of the time.
- If a payment is X (Configurable rule value) or more days late, Late fee will be charged on the customer account equal to $ (Configurable rule value).
- Each time the customer makes the payment it goes first to Membership fee, late fee, finance charges and minimum balance principal accordingly.
- Annual Fee or Membership Fee – Customer account will be imposed with an annual fee in the amount of $ for the availability of the account. This will be imposed on the date that the account is opened and will be imposed annually as long as the account remains open. This will be configurable business rule.
Retail Installment Credit
The Retail Installment loans are intended for customers who wish to avail loans for purchase of goods from various merchants at the point of purchase of goods. The applicant selects products or services provided by the merchants in their physical stores or online portals and choose loan option at check out.
Once a loan is initiated by the customer/merchant, the loan details are verified and the eligibility is checked by underwriting engine. Based on the eligibility of the customer the Merchant price details, down payment, Trade In and borrower details Loan Eligibility is derived.
Customer has the option to choose the loan option by verifying the information provided by the system.
This product also provides same as cash option to the customer based on different criteria configured in the system.