In Financial Industry, a loan is about lending money from one entity to another entity. A loan is a debt provided by an organization or an individual at an interest rate. This is evidenced by agreed terms and conditions that specify the borrowed amount, interest rate and the repayment date.
These days all the Banks/ NBFC’s provide an online portal to access the loan details and other necessary information without leaving the comfort of the home.
Loan account statements are generally printed on the piece of paper. In recent years, it has shifted to paperless, electronic statements. A loan account statement is a record for the customer that shows the minute details about the loan repayment. The loan statement helps to get the summary of the loan, disbursement details, and interest rate history. It is a summary of the financial transactions occurred during over the period of time.
Activity details of the Statement include
Customer ID: A unique customer ID is generated for every customer by the Bank/ NBFC at the time of loan disbursement.
Loan Account Number: A unique number given to every customer. It is termed as LAN Number. A customer have a single unique ID in a Bank/NBFC but can have multiple Loan Account Numbers in the same Bank/NBFC for different loans.
Statement Number: The number in the series of statements sent since the start of the loan.
Property Details: It is only applicable for secured loans. Property details include the complete property address mortgaged with the Bank / NBFC.
Applicant & Co-Applicant Details: This includes the details about the borrower and the co-borrower in the loan structure.
Required Payments: The minimum amount one has to pay every month to payoff the loan within the agreed term.
Interest Rate: Current interest rate on the loan. If there is any change in the ROI it is reflected in the transaction page.
Loan Balance: The balance amount owed at the time of the issue of the statement.
Loan Snapshot: A summary of the total transactions processed till the time of statement generation. It also reflects the total interest, principal paid at the time of statement generation.
Repayments: The sum of the total paid amount during the statement period.
Other: This includes the reversal, redraws or any other adjustments done in the statement period.
Interest: This includes the total interest paid from the start of the loan up to the generation of the statement.
EMI Presented / Cleared: Their is the fixed date of EMI presentation according to the repayment schedule given to the customers at the start of the loan. According to this EMI is being presented in the customer’s account as per the schedule date. The loan statement reflects whether the EMI was cleared from the customer’s account or bounced. (Know more which are the factors effect your loan EMI)
EMI Bounce Details: If the EMI is bounced then the charges are levied in the customer’s loan account and are reflected in the loan statement. If these bounce charges are not cleared on time then the statement reflects them as an overdue charges.
Bouncing / Overdue charges / Miscellaneous: Any charges related to insurance or any other charges being given by the Bank/ NBFC are reflected in the loan statement
By studying the loan account statement helps the customer to raise any future disconnects (any unknown charges, disbursement details, EMI clearances, property details etc.) and can settle them on time.