What is loan limit in SAP FS-PM - Policy Management?

SAP Term: loan limit

• Component: FS-PM

• Component Name: Policy Management

• Description: Amount that indicates the maximum percentage of the reserve of an insurance contract that may be loaned.

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• Key Concepts: 
  Loan limit is a feature of SAP FS-PM Policy Management that allows users to set a maximum loan amount for a customer. This limit is used to ensure that customers do not take out loans that are too large for them to handle. The loan limit can be set by the user and can be adjusted as needed.
  
  How to use it: 
  To use the loan limit feature, users must first create a policy in SAP FS-PM Policy Management. Once the policy is created, users can set the loan limit by entering the maximum loan amount they want to allow for a customer. The loan limit can then be adjusted as needed.
  
  Tips & Tricks: 
  When setting the loan limit, it is important to consider the customer’s financial situation and ability to repay the loan. It is also important to consider any other factors that may affect the customer’s ability to repay the loan, such as their credit score or other debts they may have.
  
  Related Information: 
  For more information on SAP FS-PM Policy Management and how to use its features, please refer to the official SAP documentation. Additionally, there are many online resources available that provide tutorials and tips on how to use SAP FS-PM Policy Management.