A loan register is a record used to track due dates of loans issued by a lender, typically arranged chronologically. It includes borrower name, loan account number, amount owed, and due date. Some lenders add contact information and co-signer details. Electronic and spreadsheet formats are common.
A loan register is a record or journal used to track due dates associated with loans issued by a specific lender. The record is normally arranged in chronological order, making it very easy to determine which loans are due in the near future. A loan record works like a due tickler file, alerting loan officers when they need to contact borrowers and reminding them of the impending loan due date. Records of this type are most useful with term loans and other similar loans that involve balloon payments, rather than a series of monthly installments.
The actual structure of a loan record may vary somewhat, depending on local custom. There are some basic types of information that are likely to appear in any such record. First, the name of the borrower will be recorded, along with the loan account number assigned to the borrower. The amount owed on the loan is also listed. Finally, the loan due date is listed and is typically 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 on file, such as a mailing address and phone 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.
Typically, a loan record can be structured to include details of the co-signers or co-borrowers listed on the loan. Depending on the policies and procedures of the lending institution, reminders and notices that the loan is due due can be sent to both the primary borrower and the cosigner, or only the primary borrower. If the due date passes without receipt of payment, the lender may choose to use data recorded in the loan registry to alert the cosigner of the issuance and request payment of the outstanding balance, plus any interest that began to accrue after the expiration date .
While prior years’ loan records were kept as a paper record, most current accounting programs offer the ability to create and maintain an electronic loan record, and some choose to use a simple spreadsheet format. This approach makes it very easy to also add comments or notes to each loan entered into the directory. Additionally, many software packages offer the ability to flag loans for some form of communication at intervals of two weeks and one month before the actual due date.
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