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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.
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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
J 3-CO-MAKER COpy
I 2-PCD FILE
I-MACHINE DEPT. COpy
TELEPHONE THE COUNTY TRUST COMPANY
WHITE PLAINS PERSONAL CREDIT DIVISION
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