The Loan Lifecycle
Application and committee review
The member submits a loan request outside Agatabo. Your committee evaluates their savings history, existing loan obligations, repayment capacity, and proposed securities before deciding on an approved amount and terms.
Loan creation in Agatabo
A loan officer opens the 5-step loan creation wizard, enters the borrower details, configures interest rules and installment structure, attaches securities, selects the disbursing bank account, and submits.
Automatic disbursement
Agatabo creates all necessary journal entries in a single transaction — no separate disbursement step required. The loan is live and the installment schedule is generated immediately.
Repayment begins
Starting on the first payment date (automatically set to one month after the start date), the member makes monthly payments. The treasurer records each payment in Agatabo, which deducts the amount from the member’s savings balance and allocates it between principal and interest.
Penalties for late payments (if applicable)
If an installment is overdue, the system computes a penalty based on the configured penalty rate. You decide when to formally apply each penalty, giving you flexibility to waive charges for members with genuine hardship.
Loan completion or default
When the final payment brings the outstanding balance to zero, the loan is automatically marked Fully Repaid and all securities are released. If the member stops paying and all collection efforts fail, you mark the loan as Defaulted — triggering automatic recovery from securities and a bad debt write-off for any unrecovered amount.
Key Portfolio Metrics
Agatabo tracks three metrics that give you an instant read on the health of your loan book.Portfolio Outstanding
The total outstanding principal balance across all active loans. This figure appears on the dashboard and represents the organization’s loan receivable asset. A growing Portfolio Outstanding means the lending program is expanding; a shrinking one may indicate more repayments than new disbursements. Example: Ten active loans with balances of 500K, 300K, 200K, 150K, 100K, 90K, 80K, 70K, 60K, and 50K give a Portfolio Outstanding of 1,600,000 RWF.Arrears
The total overdue amount across all active loans — past-due principal, interest, and applied penalties combined. Arrears indicate members who are behind on their schedule. Monitor this figure weekly and follow up within seven days of any missed payment to prevent small delays from becoming defaults. Example: A member who owed 50,000 RWF on June 1 but has not yet paid means 50,000 RWF is now in arrears.Delinquent Loans
The count (and percentage) of active loans that have any amount in arrears. A delinquency rate above 10% signals that the portfolio needs attention — tighten approval criteria, increase collection follow-up, or apply penalties consistently. Example: 3 loans with overdue payments out of 10 active loans = 30% delinquency rate.Loan Rules Summary
Loan rules determine exactly how much interest each member pays and how payments are structured. These settings are locked after the loan is created, so choose carefully.Interest Calculation Types
- SIMPLE
- REDUCING_BALANCE
- COMPOUND
Interest is charged on the original principal for the entire loan term. The interest amount is the same every month.Formula:
Total Interest = Principal × Rate × TermExample: 100,000 RWF at 5% monthly for 12 months- Total interest = 100,000 × 0.05 × 12 = 60,000 RWF
- Total repayment = 160,000 RWF
Installment Types
EQUAL_PRINCIPAL — The principal portion of each payment is identical; the interest portion decreases as the balance falls. The total payment starts high and declines over time. Good for members who expect their cash flow to improve as the loan matures. EQUAL_TOTAL (most common) — The same total amount is due every month (an amortized schedule). The interest portion shrinks and the principal portion grows, but the member always knows exactly what to pay. Easier to budget and explain.Payment Allocation Orders
When a member makes a payment, Agatabo splits it between principal, interest, and any applied penalties according to the allocation order you set at loan creation.| Order | How Payments Are Applied |
|---|---|
| INTEREST_FIRST | All interest is satisfied before any principal is reduced. Protects the organization’s revenue. Most common. |
| PRINCIPAL_FIRST | All principal is reduced before any interest is paid. Reduces the member’s debt faster. |
| PROPORTIONAL | Payment is split in the same ratio as principal to interest outstanding. Balanced approach for partial payments. |
Securities
Every loan should carry at least one security to protect the organization if the borrower stops paying. Agatabo supports three types of security, each with automatic blocking and automatic release when the loan is repaid.| Type | Description |
|---|---|
| Guarantor | Another member pledges a portion of their savings. The pledged amount is blocked and cannot be withdrawn or re-pledged until the loan completes. |
| Collateral | A physical asset (land title, vehicle, equipment) with an estimated value is registered against the loan. Requires manual follow-up to recover. |
| Savings Lien | The borrower pledges a portion of their own savings, which is blocked until the loan is fully repaid. |
Loan Analytics
Agatabo’s loan analytics dashboard gives you a continuous view of portfolio performance:- Loans Trend Chart — expected vs. collected installments by month
- Top Delinquent Loans — the ten loans with the highest arrears balances
- Arrears Aging — distribution of overdue amounts across severity buckets
- Loan Book Snapshot — counts and totals by loan status (active, completed, defaulted)
- Repayment Behavior — percentage of installments paid on time vs. overdue
- Security Coverage — total security value vs. outstanding portfolio
Quick Links
Creating Loans
Walk through the 5-step loan creation wizard with field-by-field guidance.
Loan Rules Explained
Detailed formulas, amortization tables, and recommended configurations.
Securities & Guarantors
How blocking, coverage ratios, and automatic enforcement work.
Recording Payments
Step-by-step guide to recording a member’s loan repayment.