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Loan Terms Setup (Short, Long)

PrismERP supports flexible configuration of loan terms to accommodate both short-term and long-term financing needs. This allows businesses and financial institutions to tailor loan products according to their operational or strategic goals.

Overview​

Loan Terms define the duration and repayment structure of a loan. PrismERP enables users to define and manage:

  • Short-Term Loans (typically less than one year)
  • Long-Term Loans (one year and above)

Each term can be customized with specific repayment intervals, grace periods, and conditions.

Key Features​

  • Customizable Loan Duration

    • Define exact loan tenure in days, months, or years.
    • Supports flexible term lengths based on business rules or client agreements.

  • Short-Term Loan Setup

    • Ideal for working capital, bridging finance, or temporary funding.
    • Quick setup with rapid repayment cycles (weekly/monthly).

  • Long-Term Loan Setup

    • Suitable for project financing, equipment purchases, or large capital expenditure.
    • Allows structured repayments over multiple years with optional grace periods.

  • Repayment Conditions

    • Define interest accrual periods (e.g., monthly, quarterly).
    • Configure balloon payments, lump sums, or equal installments.
    • Include grace periods or moratoriums for interest or principal.

  • Auto-Scheduling

    • Automatically generate repayment schedules based on term setup.
    • Integrated with EMI calculation and amortization logic.

Integration​

Loan terms are fully integrated with:

  • Loan Origination
  • Interest Calculation Module
  • General Ledger (GL)
  • Loan Repayment Tracking
  • Reporting and Analysis Tools

PrismERP makes it easy to configure and manage loan terms that align with both borrower expectations and lender strategies.