How Mobiloan Calculates and Updates Loan Frequency?
Loan frequency in Mobiloan helps the system understand a client’s borrowing pattern — whether they’re new, active, returning after a long period, or topping up an existing loan.
Before Mobiloan can calculate a client’s loan frequency, it first needs to understand their past behavior.
The app collects and updates information about:
The client’s most recent loan of the same category,
The latest instalment/closure date across all loans, and
The latest settlement date in the current loan’s category.
After the history is prepared, The logic follows a clear order:
1. Imported Clients
If the client’s data was imported from another system, Mobiloan does nothing. Frequency determination is skipped so that imported records can have their loan frequency set manually.
2. Cancelled Loan Reissued Today
If the client’s previous loan was cancelled today and they are taking out a new one on the same day, the new loan inherits the same frequency as the cancelled one.
3. First Loan
If this is the client’s first-ever loan, the frequency is set to 0. 💬 Explanation: This marks the client as a brand-new borrower in the system. Every client can only ever have one “first loan.”
4. Loan Issued Within 12 Hours of a Previous One
If a new loan is created within 12 hours of the last paid-out loan, Mobiloan assumes it’s part of the same borrowing cycle and assigns the same frequency value as the previous loan.
5. Top-up Loan (frequency 3)
If the client still owes money on a loan in the same category (outstanding balance over 100), the new loan is classified as a Top-up Loan.
💬 Meaning: The client has taken a new loan before fully repaying an existing one in the same category.
6. Repeat or Dormant Loan
If the client doesn’t have an outstanding loan in the same category:
The system compares the date of their last loan repayment (any type) against the configured dormant period.
Repeat Loan
If their last loan was repaid recently (within the dormant period), the client is considered a repeat borrower — taking another loan soon after closing the previous one.
Dormant Loan
If a long time has passed since the client’s last repayment (beyond the dormant period), the new loan is considered a dormant loan — indicating the client has returned after being inactive.
If at this stage the system still detects an unpaid balance, the classification reverts to Top-up
💡 Category Awareness in Frequency Calculation
Mobiloan carefully distinguishes between category-specific and overall loan behavior:
Top-up Loans
✅ Yes
Only applies if the client still owes money on a prior loan in the same category as the new one.
Repeat / Dormant Loans
⚙️ No (all categories)
Based on activity across all previous loans, regardless of product type.
So:
If the client still owes money in the same loan category, the new one is a Top-up Loan.
If the client recently repaid a previous loan (of any type), it’s a Repeat Loan.
If they’ve been inactive beyond the dormant period, it’s a Dormant Loan.
🧩 Example Scenarios
New client applying for their first loan
First Loan
0
Loan cancelled earlier today and reissued
Same frequency as cancelled one
(Inherits previous)
New loan applied 10 hours after previous disbursal
Same day issue
(Inherits previous)
Client has unpaid balance in same category
Top-up Loan
3
Client repaid last loan 20 days ago (within dormant period)
Repeat Loan
2
Client repaid last loan 180 days ago (beyond dormant period)
Dormant Loan
1
🧠 In Simple Terms
Mobiloan calculates loan frequency by first reviewing the client’s repayment history, both generally and by loan category. It then applies clear business rules to decide whether the new loan represents:
A first-time issue,
A repeat borrowing,
A return after dormancy, or
A top-up on an ongoing loan.
This logical progression ensures consistent tracking of borrower activity while maintaining clear explanations for each frequency classification.
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