What is loan limit in SAP FS-CML - Loans Management?

SAP Term: loan limit

• Component: FS-CML

• Component Name: Loans Management

• Description: The maximum amount of money a client can borrow over a defined period of time in a particular currency, as defined in the credit line. It is a non-revolving limit, that is, the available credit decreases each time the client takes out a loan and does not increase when the client repays the loan.

Smart SAP Assistant

• Key Concepts: 
  Loan limit is a feature of the FS-CML Loans Management component of SAP. It is used to set a maximum amount of money that can be loaned out to a customer. This limit is set by the company and can be adjusted as needed. The loan limit helps to ensure that the company does not overextend itself when it comes to lending money.
  
  How to use it: 
  The loan limit can be set in the FS-CML Loans Management component of SAP. The limit can be adjusted as needed, depending on the company's needs and risk tolerance. The loan limit should be set in accordance with the company's risk management policies and procedures.
  
  Tips & Tricks: 
  It is important to keep track of the loan limit and adjust it as needed. This will help ensure that the company does not overextend itself when it comes to lending money. Additionally, it is important to keep track of customer loan balances and make sure they do not exceed the loan limit.
  
  Related Information: 
  The loan limit feature is part of the FS-CML Loans Management component of SAP. It is related to other features such as credit limits, interest rates, and repayment terms. Additionally, it is important to consider other factors such as customer creditworthiness when setting a loan limit.