IBM E20-0037 Personal Credit Loan Accounting free download

File name E20-0037_Personal_Credit_Loan_Accounting.pdf

IBM General Information Manual Personal Credit Loan Accounting PERSONAL CREDIT LOAN ACCOUNTING Banks extend installment credit by financing purchases made through deal- ers and making loans to individuals for personal needs. Such loans are referred to as consumer credit, personal credit, installment loans, time sales, etc. Generally, a Personal Credit Department grants loans directly to the bor- rower. Other types of loans represent the purchase of installment con- tracts or the financing of time sales contracts arising out of the sale of an article of merchandise or resulting from services performed, such as home improvement and modernization. IBM Accounting is unique in its ability to satisfy all the requirements of Installment Loan Accounting. Regardless of the loan clasdification, spe- cific advantages result from the adoption of the IBM method. These include: 1. The automatic preparation of payment coupons. 2. The elimination of manual calculating, posting and other inter- mediate steps required for maintaining and controlling the ac- counting records. 3. The automatic preparation of accounting and analytical reports and statements from ffiM cards primarily produced for main- taining individual account records. 4. The fast trial balancing of accounts on a regular semi -monthly basis - up to 9, 000 accounts automatically totalled per hour. This write -up describes the application of IBM Accounting to Personal Credit Loan Accounting in a bank having 47,000 loans. Other ffiM Accounting in- stallations for this type of application vary in volume from 6,000 to 450,000 loans. 2 NEW LOAN PROCEDURE Liability Cards are key punched from the Loan Applications that are sent to the Accounting Machine Department each morning. (Exhibits 1 & 2) J 7-BRANCH COpy I 6-DEALER COpy I 5-CUSTOMER COpy I '. 4-CUSTOMER COpy