Hayat Lending — loans and microfinance
hayaterp.com ↗Hayat Lending is the opt-in Hayat ERP module for microfinance institutions, NGOs and cooperatives that lend, consumer and BNPL finance, gold loans and Islamic financing (murabaha, ijarah) — loan products, borrowers with KYC, groups, applications with a credit score and maker-checker approval, disbursement, exact schedules (flat, reducing balance or profit), repayments, penalties, early settlement, rescheduling, write-off, collections, PAR and a borrower statement with pay online. Who it is for, who does what, switching it on, demo data and how money reaches the accounts.
Hayat Lending runs a loan book inside Hayat ERP: the products you offer, the borrowers and their KYC, each application from scoring to approval, the disbursement, the instalment schedule, every repayment, and the collections work on loans that fall behind. Each instalment becomes a normal Sales invoice to the borrower when it falls due and each repayment a Sales receipt, so borrower balances, the loans receivable and the income are in your books as they happen.
Who it is for
| You run | What Hayat Lending does for you |
|---|---|
| Microfinance institution, NGO or cooperative | Group loans with weekly or fortnightly instalments, group meetings and officers, the due list, visit notes and promises to pay, PAR 1 / 30 / 60 / 90. |
| Consumer finance or BNPL by a retailer | Products with fees deducted or added to the first instalment, quick applications, pay-online links and SMS / WhatsApp reminders. |
| Gold loans | Collateral with weight and karat, a loan-to-value limit, early settlement. |
| Islamic financing | Murabaha and ijarah with profit instead of interest, and late-payment penalties sent to a charity account instead of income. |
Amounts are in your business's currency (PKR, IQD, SAR, AED, OMR, QAR …).
The menu
| Menu item | What it is |
|---|---|
| Lending dashboard | Portfolio and PAR, applications waiting, due today and overdue, this month's disbursements and collections |
| Borrowers / Borrower groups | People and businesses you lend to; microfinance groups |
| Loan applications | From draft to approval and disbursement |
| Loans | Every loan with its schedule, repayments and notes |
| PAR & ageing | Portfolio at risk and the ageing buckets |
| Collections / Promises to pay | The due list for officers; promises and whether they were kept |
| Loan products | What you offer and on what terms |
| Lending reports | The five reports below |
| Lending settings | Rounding, allocation order, approval limits, rebates, accounts (lending.approve only) |
Who does what
| Permission | Typical person | Can do |
|---|---|---|
| lending.view | Everyone in lending | See products, borrowers, applications, loans, statements, collections and reports. Every other permission needs this one too. |
| lending.originate | Loan officer, credit officer | Add borrowers and groups, upload KYC documents, create, score and submit applications, get the AI note, cancel, disburse approved loans. |
| lending.approve | Branch manager, credit committee | Approve or reject applications (within their limit, never their own), decide KYC, products, settings, reschedule, write off, waive penalties, demo data. |
| lending.collect | Recovery officer, cashier | Take repayments, settle loans early, raise dues, assign officers, collection notes and promises, send reminders, pay links and the borrower's link. |
Suggested roles (Settings → Roles): Lending Manager (all four), Loan Officer (view + originate + collect), Credit Approver (view + approve), Recovery Officer (view + collect). See Roles.
Switch it on
Hayat Lending is opt-in: a new business starts without it, and until it is on every screen says Hayat Lending is not part of your subscription.
- Hayat team (super admin): in admin.hayaterp.com → Subscribers, open the business, tick Hayat Lending under Modules and click Save modules. See Switch modules on or off.
- Business admin: in Settings → Roles give the lending permissions to the right roles, and those roles to the users. Keep originate and approve in different roles — that is your maker-checker. The menu group Hayat Lending appears at their next screen load.
- Lending manager: fill the Lending settings and add the loan products.
- For pay-online links set up online payments; for reminders switch on Loan instalment due in Marketing → Reminders.
Try it with demo data
With no products yet, a user with lending.approve sees Load demo data on the Lending dashboard. It sets the settings and adds five products (a personal loan on reducing balance, a fortnightly flat microfinance group loan, a gold loan, a consumer loan and a murabaha), a group of three members, borrowers, applications (one waiting for approval), three loans disbursed in the past so that some instalments are overdue, a repayment, a promise to pay and the penalties built up. Everything goes through the normal screens' logic, so it posts to your Sales and accounts — use it on a demo or test company. It does nothing once borrowers exist.
Settings
Lending settings (lending.approve):
| Setting | Default | Means |
|---|---|---|
| Invoice dues days ahead (0–30) | 3 | Each instalment is billed this many days before its due date |
| Reminder days before due (0–15) | 2 | When the Loan instalment due reminder goes out |
| Instalment rounding | 0.01 | Instalments are rounded to 0.001, 0.01, 0.1, 1, 5, 10, 50 or 100; the last one takes the difference |
| Allocation order | Penalty → Fee → Interest → Principal | How a payment is split inside each instalment (drag with ↑ ↓) |
| Also send applications to the Workflow engine | On | Approval rules for loan applications in Approval workflows apply on top of the limits below |
| Allow the maker to approve their own application | Off | Off = maker-checker: who created it cannot approve it |
| Approval limits | none | + Limit: a role and the largest amount it may approve. With limits set, an approver needs a listed role |
| Max debt-burden ratio % | 50 | Used by the credit score and the warnings |
| Flat early-settlement rebate % | 100 | Share of future interest / profit forgiven when a flat loan is settled early |
| Islamic loans: late penalties go to charity payable | On | |
| Month-end interest / profit accrual | On | See below |
| Borrower statement pages by link | On | The borrower's page on my.hayaterp.com/lending/… |
| Accounts | see below |
How money reaches the accounts
| What happens | Posting |
|---|---|
| Disbursement | Dr Loans Receivable (principal) / Cr cash, bank or wallet of the method (principal less a deducted fee) / Cr Loan Processing Fees (deducted fee) |
| An instalment is billed (invoice dues days ahead, or when money reaches it) | A Sales invoice to the borrower's customer account, due on the instalment date; the income moves to Loans Receivable (principal part), Interest Income or Profit on Islamic Financing, and Loan Processing Fees |
| Repayment | A Sales receipt (cash, bank, wallet …) against the loan's invoices; the penalty part goes to Late Payment Penalties — or Late Payment Charity Payable for Islamic loans |
| Month-end accrual | Interest or profit earned on the current instalment up to month end: Dr Accrued Interest / Profit Receivable / Cr income, reversed on the 1st |
| Early settlement | One settlement invoice (principal left + settlement charge + fee) and a normal receipt |
| Reschedule with arrears capitalised | The open instalment invoices are credited in Sales and the arrears become principal of the new schedule |
| Write-off | Open invoices and principal not yet due to Loan Losses Written Off; pending penalty waived |
| Money after a write-off | Dr cash / Cr Recoveries of Written-off Loans |
So Loans Receivable holds principal not yet due, and the borrower's Sales balance is what is due and unpaid. Receipts entered directly in Sales against a loan's invoices count too.
Hayat Lending adds these accounts the first time it needs them; each can be changed in the settings:
| Code | Account | Kind |
|---|---|---|
| 1170 | Loans Receivable (Principal) | Asset |
| 1175 | Accrued Interest / Profit Receivable | Asset |
| 2410 | Late Payment Charity Payable | Liability |
| 4710 | Interest Income on Loans | Income |
| 4715 | Profit on Islamic Financing | Income |
| 4720 | Loan Processing Fees | Income |
| 4725 | Late Payment Penalties | Income |
| 4730 | Recoveries of Written-off Loans | Income |
| 6710 | Loan Losses Written Off | Expense |
Document numbers: LBR borrower, LAP application, LLN loan, LWO write-off, LRP penalty-only and recovery receipts; Sales numbers the invoices, receipts and credit notes.
Background work
| Every | What |
|---|---|
| 6 hours | Picks up payments made in Sales, adds the day's penalty, marks promises kept or broken, bills instalments now due, closes fully paid loans |
| 12 hours | Once a month, the month-end accrual for the previous month; tells officers about promises due today and managers about loans just past 30 days overdue |
Reports
Lending reports filter by dates (this month by default), product and officer, and download as CSV.
| Report | Shows |
|---|---|
| Portfolio by product (PAR) | Loans, disbursed, outstanding, overdue, PAR 1 / 30 / 60 / 90 and PAR 30 % per product |
| Disbursements | Every loan paid out: principal, fee, net, method, tenor, rate, officer |
| Collections | Every repayment split into principal, interest, fee, penalty and advance, with totals by method |
| Portfolio at risk (loans) | Every loan behind: outstanding, overdue, days past due, bucket, restructured |
| Officer performance | Per officer: active loans, portfolio, disbursed, due, collected, collection rate %, PAR 30 |
In Hayat Reports two datasets are added: Loan portfolio: instalments and Loan collections.
National ID and phone numbers of borrowers, their income and their guarantors are stored encrypted; KYC files open only for signed-in staff with access to that borrower.
Getting started in order
- Fill the Lending settings: rounding, allocation order, approval limits.
- Add the loan products and check them with the schedule preview.
- Add borrowers with their KYC documents, and groups for group lending.
- Take an application, score it, submit it, approve it and disburse.
- Take repayments and work the due list.
- Watch PAR every week.
Hayat Lending pages
| Page | For |
|---|---|
| Products and borrowers | Loan products, the schedule maths with examples, borrowers, KYC documents and decisions, borrower groups |
| Applications to disbursement | Applications, collateral and guarantors, credit score, AI note, submit, maker-checker approval, disbursement, the schedule |
| Repayments, collections and PAR | Repayments and allocation, penalties and waivers, early settlement, rescheduling, write-off, pay links and the borrower's page, the due list, promises, reminders, PAR and ageing |