Version 1.0
Prepared by: @Lorraine Sebata
Approved by: @Feli Capron
Reviewed date: 2025-07-24
Next review date: 2026-07-24
This SOP outlines the step-by-step process for processing and issuing in-person loan applications using an iPad and the Loan Management System (LMS) at Easyterms. Its purpose is to ensure a streamlined, efficient, and compliant digital intake process while maintaining accuracy and client satisfaction.
This SOP applies to all Loan Officers and relevant administrative staff involved in the in-person loan application and issuance process using iPads and the LMS for all microfinance products.
Client: Provides necessary information and documents, digitally signs agreements.
Loan Officer: Guides the client through the digital application, verifies identity and documents, inputs data into LMS via iPad, facilitates digital signatures, and manages the overall in-person process.
Risk Manager: Conducts detailed financial analysis and risk assessment based on digitally submitted data.
5.1.1 Greet the client and explain the available microfinance loan products, eligibility criteria, interest rates, and repayment terms.
5.1.2 Introduce the digital application process using the iPad, explaining the benefits (speed, paperless).
5.1.3 Provide a brief overview of the information required and how it will be entered into the LMS via the iPad.
5.2.1 Open the dedicated loan application module on the iPad's LMS application.
5.2.2 Begin a new application, inputting initial client details (e.g., Full Name, National ID/Passport No., Contact No.) directly into the LMS fields.
5.2.3 Identity Verification (Digital & Physical)
Request the client's primary identification document (e.g., National ID, Passport).
Use the iPad camera to capture a clear image of the ID. The LMS should automatically extract key data points (e.g., name, ID number, date of birth) where OCR functionality is available.
Manually verify extracted data against the physical document and correct any discrepancies.
Visually compare the client's face to the ID photo as per AML/KYC Policy.
5.2.4 Document Capture & Upload:
For all supporting documents (e.g., proof of income, business registration, utility bills), use the iPad camera to scan or photograph them directly into the LMS.
Ensure all documents are clear, legible, and correctly categorized within the LMS.
5.2.5 Guide the client through completing the remaining sections of the digital application form on the iPad, ensuring all mandatory fields are populated.
5.2.6 Confirm all data entered and documents uploaded are accurate and complete before proceeding.
5.3.1 Conduct a preliminary eligibility check using the LMS's automated screening tools based on the entered data.
5.3.2 If a field visit is required (as per Credit and Loan Policy), schedule it directly from the iPad's LMS interface.
5.3.3 Submit the completed digital application and uploaded documents to the Credit Analysis queue within the LMS.
5.3.4 Provide the client with a digital acknowledgement of application receipt (e.g., SMS, email, or printed summary from a connected printer).
5.4.1 The Risk Manager accesses the submitted application and documents via the LMS on their workstation.
5.4.2 Conducts detailed financial analysis, credit checks (integrating with credit bureaus via API if available), and risk assessment using the data within the LMS.
5.4.3 Prepares the "Credit Appraisal Report" directly within the LMS, detailing findings, risk assessment, and recommendations.
5.5.1 The Branch Manager accesses the application, supporting documents, and Credit Appraisal Report via the LMS.
5.5.2 Reviews the application and makes an approval or rejection decision within the LMS, applying their digital signature for approval.
5.5.3 For applications exceeding their authority, the Branch Manager digitally escalates the application to the Credit Committee within the LMS for review and decision.
5.5.4 All approval/rejection decisions, including reasons for rejection, are automatically logged in the LMS.
5.6.1 Upon decision notification in the LMS, the Loan Officer accesses the client's application on the iPad.
5.6.2 For approved loans, the Loan Officer informs the client of the approval, loan terms, and next steps.
5.6.3 Digital Loan Agreement: Present the "Loan Agreement" (generated by the LMS) on the iPad for the client's review and digital signature (e.g., stylus signature, fingerprint scan, or SMS OTP verification).
5.6.4 For rejected loans, the Loan Officer respectfully informs the client of the decision, providing general reasons as permissible. The rejection letter can be sent digitally (email/SMS) or printed.
5.7.1 Once the digital loan agreement is signed and all conditions met, the LMS triggers the disbursement process.
5.7.2 The Finance Department coordinates the loan disbursement as per the agreed method (e.g., direct bank transfer, mobile money), with the transaction details recorded in the LMS.
5.8.1 The Loan Officer uses the LMS to monitor repayment schedules and client communication.
5.8.2 Any follow-ups or repayment issues are logged and managed within the LMS.
[!info] All documents listed below are in the client's loan profile.
Digital Loan Application Form (stored in LMS)
Scanned/Photographed Client Identification Documents (stored in LMS)
Scanned/Photographed Proof of Income/Business Documents (stored in LMS)
Digital Field Visit Report (if applicable, stored in LMS)
Digital Credit Appraisal Report (stored in LMS)
Digital Loan Agreement (digitally signed and stored in LMS)
Digital Loan Approval/Rejection Letters (generated and stored in LMS)
Loan Management System (LMS) records (primary record)
All Loan Officers, Risk Managers, and Operations Managers will receive mandatory training on this SOP, the iPad LMS application functionalities, and related policies annually or upon significant revisions.
This SOP will be reviewed annually by the Operations, Finance and IT Departments to ensure its continued effectiveness, compliance, and alignment with business objectives and technological advancements.