This section describes the loan renew or loan renewal options and types and functionality in LP3
The following are loan renew / renewal types in LP3 and the differences between them.
- Renewal Office – When a loan renewal is done in the office with the customer in the office.
- Renewal Phone / Mail – When a loan renewal is done over the phone or via mail. Contract is created with a future date 3 to 4(if Sunday is in the days) days out and sent to the customer. The extra days allow for the customer to get the contract signed and back in to finish the renewal.
- Renewal Email – There are several stages of an email loan. First the loan is offered. When the loan is offered, the customer is emailed documents they must sign online to accept. Once they have accepted the offer, the loan is funded and completed. An email offer can be rescinded. Rescinded means the offer has been canceled. More information about email loans can be found here in Email / Instant Funding
- NL – New Loan – This is a new loan with the company, not a renewal. First time a loan is made with this customer
- FB – Former Borrower – This is also not a renewal but a customer that has paid their loan off in full and has now come back after their loan was paid off and opened a new loan.
- BR – Borrower Renewal – This is when a current borrower renews their loan to a new loan. Normally they receive money as part of the renewal process.
- NC – No Cash Renewal – This is when a current borrower renews their loan and pays money too renew. So the borrower received no cash and had to pay to renew.
- IF – In full Pay Off – This is when a borrower pays their loan off in full and then becomes a FB.
Loan Renew / Renewal Restrictions.
In the Menu Config -> Loan Info -> Renewal Options the following are renewal Restriction Options
Renewal After Number of Payments Made:
This allows setting a restriction not to allow renewal of loan until a specific number of payments have been made and the following are options settings.
- No Restrictions By Payment
- After making 1, 2, 3, 4, 5
This allows setting a restriction on renewing a loan based on a period of time since the current loan was created. The options are the following.
- After 30, 60, 90, 120, 150, 180 days have passed since current loan was created
- After 1, 2, or 3rd payment due date has passed since current loan was created.
Both of the above Renewal Overrides will allow (Early Renew) Renew Over $100 if selected and the HiCredit is an amount larger than $100 or less than $100 depending on the Override that is enabled. It is important to note that these Overrides are only relative to the (Early Renew) Renew Over $100 Restriction.
Minimum Cash Back Amount
This restriction allows setting the minimum cash back to the customer when renewing a loan. Most have this set to 0 as there may be a need to renew even with a small amount of cash back to the customer and if this is set at a high amount then many renewals that could happen under that amount will not be allowed.
Open Loan Not Renewable In The First X Days: No Limit
Default option is no limit on amount of days for loan renewal after previous loan and will be different depending on the type of loan and the state requirements.
Overriding All Restriction Settings (Important!)
It is possible to allow user permission to override all loan renewal restrictions in place above. This allows a supervisor or manager to override/allow the loan to be renewed even with the restrictions in place. The following area allows override depending on user role. If this setting is selected for the user role it will override/allow all renewals the renewal options area restricts.
Menu Config -> User Info -> Permissions -> Customer Area -> Renewal Restriction Override.