Why does Mobiloan remove the expense disclosure ?

During loan origination, an affordability assessment is done to determine a client's eligibility.

If the system identifies that the client's EXPENSES ARE BELOW THE REQUIRED NCR MINIMUM:

1. Mobiloan will prompt the client to provide detailed expense information.

2. This information is then used to generate an expense disclosure, which outlines the client's financial commitments.

3. An Affordability Expense Disclosure Contract will be generated and will be available in the Loan Menu for the loan, once the client has signed for the loan.

When a clients expenses are below the NCR Minimum, an expense disclosure will be used.

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The loan repayment as a monthly expense

To ensure that the client's financial records are sustainable, Mobiloan can add the loan repayment as an expense to the client's affordability.

In some cases, this may disqualify the need for a disclosure hence the removal of it altogether. (The affordability assessment is done before the loan product selection)

Note that, there is no specific field for 'Loan Repayment' as an expense, so Mobiloan will likely add it to a random expense such as Food / Transport.

This change is fully transparent. If you navigate to the Loan Menu > Affordability, you will notice a note indicating that the Expense Disclosure has been removed. Additionally, the qualifying expense amount has been added as an Expense Item, as illustrated below.

Should the Calculated instalment disqualify the need for an expnse disclosure, Mobiloan will ask you to either keep or remove the disclosure.

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Enabling the feature

You may enable or disable this feature per client category by navigating to `Setup > Category` and selecting the affordability tab :

For more detailed information, please refer to the following user guide:

Affordability Options | Mobiloan User Guide