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Performing Analysis ​

Analysis Tab Documentation ​

The Analysis tab in the loan origination platform provides a comprehensive view of key financial metrics for evaluating a client’s loan eligibility. The data points are extracted from various uploaded documents such as payslips, FS3 forms, identification documents, profit and loss statements (P&L), and others. Each metric on the analysis screen represents a critical factor in assessing loan terms and the client's financial position. These metrics can be dynamically adjusted by toggling between data sources (e.g., payslip, FS3) and altering underlying formulae for more precise assessments. Below is a detailed explanation of each individual metric.

Metrics Breakdown: ​

1. Age ​

  • Definition: The current age of the client.
  • Source: Extracted from identification documents.
  • Purpose: Used to determine the client's risk profile and remaining working years for repayment eligibility.

2. Years to Retirement ​

  • Definition: The number of years remaining until the client reaches the standard retirement age.
  • Source: Calculated based on the client’s age and a pre-configured retirement age (e.g., 65).
  • Purpose: Important for assessing whether the loan can be repaid during the client's working years.

3. Months Available for Repayment ​

  • Definition: Total number of months left for loan repayment.
  • Source: Derived from the client's age and the number of years until retirement.
  • Purpose: Defines the maximum loan term that can be considered.

4. Income ​

  • Definition: The client’s total yearly income, which can include base salary, overtime, and other benefits depending on the data source selected (e.g., payslip, FS3).
  • Source: Configurable; can be switched between multiple payslips or FS3 forms. Options include:
    • Gross Emolument: Total income before deductions.
    • Overtime: Extra earnings from work beyond regular hours.
    • Fringe Benefits: Non-cash benefits provided by the employer.
  • Purpose: Critical for determining how much the client can afford to borrow and repay.

5. Maximum Commitment ​

  • Definition: The maximum amount the client can commit monthly towards loan repayment.
  • Source: Derived from income figures and calculated using configurable formulas.
  • Purpose: Establishes the upper limit for monthly loan payments based on the client’s financial situation.

6. Debt Service-to-Income Ratio ​

  • Definition: A ratio that compares the client’s existing debt obligations to their income.
  • Source: Calculated using debt data from the client and their total income.
  • Purpose: Assesses the client’s ability to take on additional debt. Lenders often prefer lower ratios to minimize risk.

7. Exceeds Maximum Loan Amount ​

  • Definition: A warning flag indicating that the requested loan amount exceeds the client's maximum eligible loan value based on income, debt ratio, and other factors.
  • Purpose: Highlights risk when the loan request surpasses what the client can realistically afford.

8. Interest on 12 Months (with Stress) ​

  • Definition: The interest amount the client would pay over 12 months, factoring in potential stress scenarios (e.g., higher interest rates).
  • Source: Configured via a formula that takes into account the current interest rate and potential stress tests.
  • Purpose: This metric shows how potential increases in interest rates could affect the client’s ability to pay.

9. Interest on 12 Months ​

  • Definition: The interest amount the client would pay over 12 months under normal conditions.
  • Purpose: Provides a baseline of the interest payments expected for the first year of the loan term.

Dynamic Data Source Toggles ​

Users can switch between different data sources for income and other metrics, such as:

  • Payslip #1, Payslip #2, Payslip #3: Multiple payslips can be used to calculate metrics.
  • FS3: A yearly income statement that may offer more comprehensive income information.

By toggling between these sources, users can see how different income figures and benefits (overtime, fringe benefits) affect the loan analysis.

Configurable Formulas ​

All metrics, including Debt Service-to-Income Ratio and Maximum Commitment, are driven by configurable formulas. These formulas allow administrators to adjust the way these metrics are calculated, providing flexibility based on lending criteria, financial products, or regulatory requirements.

Warnings and Flags ​

The analysis tab will display warnings such as “Exceeds Maximum Loan Amount” if the metrics suggest that the loan being considered exceeds safe limits for the client. These warnings help users quickly assess risk.

Conclusion ​

The Analysis tab provides a robust and customizable framework for evaluating a client's loan eligibility, with dynamic toggling of data sources and configurable formulas that allow for precise and flexible loan assessments.