Bank Account

Non-Banking Financial Companies (NBFCs), maintain different disbursement and payment accounts that are crucial elements in managing the flow of funds for loans and other financial services.

A disbursement account in the context of NBFCs is used to manage the release of loan funds to borrowers. This account is an integral part of the loan process, where the NBFC controls the outflow of funds to ensure they are directed correctly.

A payment account in NBFCs is used to manage incoming funds, primarily loan repayments, and other payments related to financial services provided by the NBFC.

Frappe Lending allows users to map these accounts in the Bank Account master.

To access the Bank Account, go to:

Home > Lending > Banking > Bank Account

1. Prerequisites

Before creating a Loan Product, it is advised to create the following:

• Company
• Bank

2. How to create a Bank Account

1. Go to the Bank Account List, and click on Add Bank Account.
2. Enter the bank account name, select the bank, add the ledger from the chart of accounts and check "Is Company Account" and add the company.
3. Save