Navigation: Client Administration > Search for an Existing Client > Edit Client > Budget

The Budget screen is a critical tool for performing affordability assessments to ensure responsible lending. This guide covers both the regulatory requirements and the practical steps for using the budget functions in MAXMONEY.

Video Tutorial

• For a visual guide on how to create a standard budget for a client, watch the video link - https://www.youtube.com/watch?v=GZcKdBWm81M
• For a visual guide on how to create a NCR standard budget for a client, watch the video link - https://www.youtube.com/watch?v=BF6CE3v0bFI

The following action buttons are available on the screen:

Feature	Description	Documentation
Add a New Budget	Click this to create a new, blank budget for the client .	New Budget
Edit Budget	Highlight an existing budget from the list and click this to modify its details .	Edit Budget
Budget Items	Highlight an existing budget and click this to add, edit, or remove individual income and expense line items within that budget .	Budget Items
Print Budget Form	Click this to generate a printable budget form for the client to complete and sign. The form includes the statement: "I acknowledge that I have given due consideration to the repayment of the loan amount applied for in the loan agreement, with regards to the above budget." Your company's logo can be configured to appear on this report .	Print Budget Form

Part 1: Understanding Affordability Assessment Guidelines (South Africa)

For all lending in South Africa, you must adhere to the Affordability Assessment Guidelines of the National Credit Act (NCA). The following is a summary of key principles. For full details, please consult the official government documentation.

Key Definitions

• Necessary Expenses: The absolute minimum living expenses for a person, covering food, transport, and accommodation.
• Discretionary Income: The money left after subtracting statutory deductions (tax, UIF), all Necessary Expenses, and all other existing debt payments (like those on a credit report) from a person's gross income.
• Discretionary Income Buffer: A safety net to account for changes in a consumer's financial situation.
  • 10% Buffer: Required for unsecured credit (most personal loans).
  • 5% Buffer: Required for credit secured by property.

Minimum Living Expenses (Table 1)

The NCR provides a table for minimum monthly necessary expenses. You may not accept living expenses lower than these values unless the consumer provides credible evidence (e.g., bank statements, lease agreements, official letters). Everyday living expenses are things such as groceries, utilities and transportation.

Example: A client with a monthly gross income of R5,000 has a minimum living expense of R1,083.50 (calculated as R800 + 6.75% of R4,200).

Key Credit Provider Responsibilities

• Reckless Lending: Granting a loan where the consumer's expenses are below the Table 1 minimums without credible evidence is considered reckless lending.
• Debt Repayment Cap: It is recommended that a consumer's total debt repayments do not exceed 40% of their gross income. Debt repayments include obligations such as mortgage payments, student loans, credit card payment, child support and alimony.
• Garnishee Order (EAO) Cap: The total of all Emolument Attachment Orders (garnishee orders) may not exceed 30% of the consumer's gross income.
• Credit Bureau Reporting: All credit providers must report the details of all new and closed credit agreements to the credit bureaux.
• Credit Insurance: Credit life insurance premiums required for a loan cannot exceed R4.00 per R1,000 of cover.
• Loan Terms: It is recommended that unsecured term loans should not be granted for longer than 5 years.
• EDO Tracking: The recommended tracking period for Early Debit Order (EDO) systems is limited to 10 days.

Part 2: Using the Budget Screen in MAXMONEY

This section explains the functions available on the Budget screen.

Viewing Existing Budgets

The main part of the screen displays a list of the client's saved budgets.

Available Actions

• Close: Click this to exit the Budget screen and return to the previous page.

Part 3: Administrator Setup Guide

Before users can effectively use the budget module, an administrator must configure the following settings.

User Role Permissions (Resources)

Ensure that users have the correct permissions assigned to their role at Setup > Security > Roles. Unpacking the budget resournces:

• Add Budget from Bureau Enquiry : Allows the user to create a budget after the credit check.
• Add Client Budget Expenses : Allows the user to add budget expenses on the standard type budget.
• Add Client Budget Notes : Allows the user to add notes on the standard type budget.
• Add Client from Bureau Enquiry : Allows the user to create a client after the credit check.
• Change Client Budget : Allows the user to edit, or view a client's budget.
• Change Client Budget Expenses : Allows a user to edit the expenses on a standard type budget.
• Change Client Budget Income : Allows the user to modify income figures within a standard type budget.
• Change Use Client Budget : Allows the user to toggle the "Use Client Budget" checkbox on the Financial tab.
• Change Use NCR Budget : Allows the user to select and work with NCR budget types.
• Force Budget Expenses : The user is forced to complete the expenses on the budget.
• Force NCR Budget Detailed to Add Reason : Requires the user to enter a reason if a zero value is entered in certain fields of the NCR Detailed Budget.
• Print Budget : Allows the user to print a completed budget report.
• Print Budget Form : Allows the user to print a blank budget form

Part 4: System-Wide Budget Configuration

These settings at Setups > Clients > General > Affordability control how budgets behave across the entire system.

Other Setups

• Budget Form Setup: The layout and content of the printable budget form can be customized at Setups > Documents.
• Master Budget Form (MaxAdmin): The master budget template can be configured per country in the MaxAdmin setup.