SAP S/4HANA Loans Management
Comprehensive Lending Lifecycle Management on SAP S/4HANA
SAP S/4HANA Loans Management (formerly SAP CML) enables end-to-end lifecycle management for retail, corporate, and complex lending portfolios.
It empowers banks to efficiently manage loan originations, servicing, payments, collateral, limits, accounting, and reporting—all powered by SAP’s modern S/4HANA digital core.
Our consulting practice brings deep functional and technical expertise across the entire S/4HANA Loans Management landscape.
Core Capabilities of SAP Loans Management
Loan Product Coverage
Retail Loans
- Personal loans
- Auto loans
- Mortgage / housing loans
- Education loans
Corporate Loans
- Term loans
- Working capital
- Demand loans
Complex Structured Loans
Syndicated & Club Deals
Islamic / Sharia-Compliant Lending (Murabaha, Ijara — optional extension)
Key Functional Processes Supported
Loan Origination & Contract Creation
- Loan application intake (manual / via external LOS)
- Credit decisioning, scoring & KYC integration
- Product selection, pricing, and interest rate assignment
- Contract setup with disbursement schedules
- Integration with SAP Business Partner & Master Contract
Loan Lifecycle Servicing
- Single / multiple / partial disbursements
- Repayment schedules:
- Annuity
- Bullet
- Stepped
- Flexible
- Interest & fee calculation (simple, compound, variable, floating)
- Rollover, restructuring & renegotiation
- Installment adjustments & rate changes
- Lockbox & external payment interface support
Posting & Accounting
- Real-time postings to SAP FI
- IFRS, local GAAP & tax accounting
- Deferred interest, accruals & amortization
- EIR (Effective Interest Rate) calculation
- NPA / Stage 1–2–3 classification (IFRS 9)
- Provisioning, charge-offs & write-offs
Collateral & Risk Integration
- Collateral creation & valuation
- Revaluation and monitoring
- LTV (Loan-to-Value) calculation
- Full integration with:
- SAP Collateral Management (FS-CM)
- SAP Credit Management (limits, scoring)
Payments, Collections & Recovery
- Automated installment processing
- Partial & full prepayments
- Overdue management & penalty calculation
- Dunning and collection workflows
- Restructuring & NPA handling
- Full contract closure
