A loan ledger tracks due dates for loans issued by a lender, organized chronologically. It includes borrower name, loan account number, amount owed, and due date. Some lenders add contact info and details of co-signers. Electronic versions allow for notes and reminders to be added.
A loan ledger is a ledger or journal used to keep track of the due dates associated with loans issued by a specific lender. The ledger is normally organized in chronological order, which makes it very easy to determine which loans are due in the near future. A loan log works like a due date control file, alerting loan officers when to contact borrowers and remind them of the impending due date for the loan. Records of this type are most useful with term loans and other similar loans that involve ballooning payments, rather than a series of monthly installments.
The actual structure of a loan book may vary slightly, based on local customs. There are a few basic types of information that could appear in any such log. First, the borrower’s name will be recorded, along with the loan account number assigned to the borrower. The amount owed for the loan is also listed. Finally, the due date of the loan is listed which is normally used to sort the entries in chronological order.
Some lenders prefer to add additional data to the loan record, usually for internal purposes. For example, a lender may choose to add contact information for each loan listed in the registry, such as a postal address and telephone number. This helps speed up the process of generating a reminder letter to the borrower or making a phone call to remind the borrower that the due date is fast approaching.
A loan book can usually be structured to include details of any co-signers or co-borrowers listed on the loan. Depending on the lender’s policies and procedures, reminders and notices that the loan’s due date is imminent may be sent to both the principal debtor and the cosigner, or only to the principal debtor. If the due date passes without having received payment, the lender may choose to use the data recorded in the loan ledger to notify the cosigner of the issue and request payment of the outstanding balance, plus any interest that has begun to accrue after the due date. of expiry .
While the loan record of years past was kept as a paper document, most accounting software today offers the ability to create and maintain an electronic loan record, with some choosing to use a simple spreadsheet format. This approach makes it very easy to also add comments or notes to each loan entered in the directory. In addition, many software packages allow you to mark loans for some types of communication at intervals of two weeks and one month before the actual due date.
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