Lending glossary for PesoLend teams
Shared definitions so officers, collectors, finance, and boards talk about the same portfolio reality.
PAR (Portfolio at Risk)
A measure of outstanding loan balances that are past due beyond a chosen threshold, often 30 days. Useful only when due dates and postings are trustworthy.
Arrears
Amounts that remain unpaid after the due date. Aging buckets help managers prioritize follow-up.
Flat interest
Interest calculated on the original principal for the term, depending on product rules. Always confirm how your policy defines it.
Reducing balance
Interest calculated on remaining principal, so charges fall as the borrower repays.
Interest-only
A schedule where early installments may emphasize interest before principal reduction, per product design.
Compound methods
Interest approaches that apply compounding rules defined by the product — configure carefully and test with examples.
Disbursement
The act of releasing loan proceeds to the borrower. Often protected by maker-checker approvals.
Maker-checker
A control where one user prepares an action and another approves it before it takes effect.
Allocation / waterfall
Rules that decide how a payment splits across fees, interest, penalties, and principal.
Branch switcher
UI control that lets authorized staff move between branch portfolios without separate logins for each site.
Due today
Loans or installments expected to be paid on the current business date in the configured timezone.
Collections route
A field path or assignment list used by collectors visiting borrowers outside the branch.
Outstanding principal
Remaining principal balance on a loan before interest and fees considerations in reporting.
Write-off
An accounting decision to remove a balance from active portfolio expectations after recovery efforts fail — governed by policy.
Parallel run
Operating old and new systems side by side during migration to compare results before cutover.
How to introduce terms in training
- Pick ten terms your team uses weekly and agree on definitions.
- Show one sample loan schedule and walk allocation examples.
- Have collectors and cashiers explain due today in their own words.
- Ask finance to show how PAR will be read in board packs.
Rolling out across sites? Read multi-branch. Field-heavy? See field collections.
Next reading
Buyers can continue to why PesoLend, pricing, FAQ, and contact. Active users: log in.
Using terms in board and donor language
Translate carefully. PAR is not the same as a simple arrears count. Outstanding principal is not the same as amount due today. When stakeholders mix terms, software reports look wrong even when they are consistent.
Create a one-page term sheet for your institution and stick to it across branches. Multi-site teams should read multi-branch alongside this glossary.
Practice drills
- Explain reducing versus flat interest with numbers.
- Allocate a partial payment using your waterfall.
- Show how a missed due moves aging buckets.
- Describe who can disburse under maker-checker.
Term ownership
Assign a glossary owner — usually operations with finance co-sign. When someone invents a new metric name in a board deck, the owner either adopts it formally or rejects it. This small governance step prevents months of confusion.
Translate terms into local staff language where helpful, but keep the system-facing terms stable. That balance supports Philippine branches and worldwide teams alike.
- Review terms quarterly.
- Include examples with numbers.
- Test understanding during onboarding.
See guides, migration, why PesoLend, pricing.
Examples beat definitions alone
For every critical term, store one numeric example your staff recognizes. Examples travel better across Philippine branches and worldwide teams than abstract wording.
Keep examples with SOPs and update them when products change.
- One example per critical term.
- Owner and review date on the term sheet.
- Board glossary appendix when needed.