Arrears and provisioning
Every loan classified on your own ladder, every night.
Arrears stop being a spreadsheet someone rebuilds each month. One nightly run charges penalties, accrues what the book earns, stops interest on loans that will not pay and places every loan on the delinquency ladder you define. Every step is safe to run twice.
PAR30 3.5% of LKR 118,406,250.00, provision required LKR 4,512,318.40
What it does
One nightly run, four steps
Accrue, penalise, accrue default interest, classify, in that order, for every loan. A loan the run did not reach today accrues the missed days tomorrow.
Your own delinquency ladder
Day ranges you define, each with a provisioning rate. A released ladder is immutable, and a change reaches loans through a new product version.
Provision computed, posted by a person
Each loan's provision is its rung's rate on outstanding principal. A provision run for a date posts only the difference from earlier runs; automatic posting is a setting that is off by default.
Interest stops on non-paying loans
Past the number of days overdue the product sets, a loan stops accruing. Accrual resumes from the day it cures, and the gap is never back-accrued.
No late fee for closed days
A due date on a day the branch was shut moves to a working day by the product's rule, or keeps its date and earns no late fee until the end of the next working day.
Net of eligible collateral
The provision can be computed net of eligible collateral after each type's discount. The setting is off by default, so nothing already on the books moves.
Your ladder, your provisioning rates
Move the slider to see where a loan lands and what it needs set aside. The day ranges and rates here are an example; each institution writes its own.
- CurrentProvision 1%
- 1–30 daysProvision 5%
- 31–60 daysProvision 20%
- 61–90 daysProvision 50%
- 91–180 daysProvision 75%
- 181 days and overProvision 100%
On LKR 100,000.00 outstanding, the provision is LKR 20,000.00.
Example ladder. Each institution sets its own day ranges and rates.
What it refuses
A control is only a control if the system enforces it.
- Fused refuses a second penalty on the same instalment.
- Fused refuses a ladder whose day ranges leave a gap or overlap.
- Fused refuses a provision run dated in the future or in a closed period.
- Fused refuses default interest charged on penalties or fees.
The rules underneath
The detail your finance and IT teams will ask about.
- Days past due
- The business date less the due date of the oldest instalment not fully settled, in whole days.
- Grace
- Arrears grace delays when a loan is classified; penalty grace delays when it is penalised. Neither changes the count or the amount.
- Penalties
- Flat, or a percentage of overdue principal or of overdue principal plus interest. One per instalment, ever, held by a unique constraint.
- Provision
- The rung's rate applied to outstanding principal, not to the overdue part, at the currency's scale, rounded half-up.
- Non-accrual
- Off by default. When it applies, interest accrued and not collected stays, is reversed to income, or is parked in interest suspense, as the product says.
- Re-runs
- Every step is idempotent for a business date. Re-running an unchanged date posts nothing.
Works with
- LendingVersioned loan products, a quote frozen at submission, approval that reprices, and repayments in your own order.
- ReportingFour built-in reports, a designer for your own queries over sandboxed views, and scheduled CSV, XLSX or PDF.
- AccountingA general ledger in which every entry balances or is refused, and no posted entry can be edited.
Arrears and provisioning: questions
Can we define our own arrears buckets?
Yes. The delinquency ladder is yours: the day ranges and a provisioning rate on each rung. The arrears list shows the rung each loan sits on.
What if the nightly run fails or runs twice?
Nothing is charged twice. Each step is idempotent for a business date, and a loan the run missed accrues the missed days on the next run.
Does the provision post automatically?
Only if you turn that setting on. By default the nightly run computes and stores each loan's provision, and a person posts a provision run for a date.
See it on your own products and numbers.
A walkthrough with the team that builds Fused: your loan products, your branches, your month-end.