Collateral & Insurance
Collateral register, revaluation, guarantors, repossession, and credit-life/asset insurance.
Registering collateral against a loan
Asset type, valuation, perfection status, and how it satisfies a disbursement requirement gate.
Revaluing collateral
When revaluation is required and how it affects loan risk classification.
Adding a guarantor to a loan
Guarantor obligations and how they display alongside the loan.
Why repossession requires a recovery notice first
The notice gate — see Compliance for the notice requirements.
Issuing a credit-life or asset insurance policy
Decreasing sum-insured, premium posting as a GL liability.
Lodging and settling an insurance claim
The lodge → assess → settle path, and how a settled claim posts as a real repayment rather than a write-off.
Understanding decreasing sum-insured
Why the covered amount falls in step with the outstanding balance.
Related categories
Loan applications, the approval ladder, disbursement, repayment, restructuring, and write-offs.
Affordability assessment, CRB checks, recovery notices, and the complaints register.
Double-entry GL, chart of accounts, trial balance, period close, and VAT treatment.
Frequently asked questions
What is collateral perfection?
The legal/administrative step confirming a lender's claim on an asset is enforceable — often a disbursement requirement gate.
Can a lender repossess collateral immediately on default?
No, a recovery notice must be served first.
What is decreasing sum-insured?
An insurance structure where the covered amount falls in step with the outstanding loan balance.
How is a settled insurance claim recorded?
As a real repayment against the loan, not as a write-off.
Do guarantors appear on the loan record?
Yes, alongside the borrower and their obligations.