Repayment

Usually the loan repayment is done by setting up of standing instructions if such account is within the bank or by maintaining mandate instruction if such account is of another bank. Once these instructions are maintained by the bank for the loan account, the repayment amount is periodically drawn from the source account to settle the repayment.

Apart from periodic payments, customers on time need to make partial or full repayment of the outstanding loan amount by making an ad-hoc payment. This feature allows the user to make ad-hoc repayments through self service channel. Users can make repayment only through the source account linked to customer.

Customers can make partial repayment or make full settlement of the loan account. In partial settlement customer can make payment of any amount that is less than the outstanding loan amount. In this case, if there are any arrears in the loan account, then arrears will be settled first, then remaining balance of the transferred amount will be settled against the principal balance of the loan.

In case of full settlement, the final settlement amount is calculated by applying penalties or charges as applicable by the host system and displayed to the user. The user needs to transfer final settlement amount in order to make full repayment.

How to reach here:

Dashboard > Accounts > Loans > Repayment

OR

Dashboard > Accounts > Loans > Overview > Quick Links > Repayment

Field Description

Field Name	Description
Select Account	Loan account number along with the account nickname. For more information on Account Nickname, click here.
Pending Arrears	Pending arrears amount in the account along with currency. It is sum of Principal and Interest arrears.
Outstanding Principal	Outstanding principal balance in the account along with currency.
Disclaimer	Text message informing the user about the appropriation of funds in case of a partial payment.
Source Account	Account with the account nickname for making partial payment. For more information on Account Nickname, click here. Note: The list displays all active accounts that the logged in user has access to – of his primary party & linked parties.
Balance	Balance amount in the selected source account.
Repayment Amount	Amount for the repayment of loan. Note: Amount should be less than the outstanding principal balance.

To repay the loan:

1. From the Select Account list, select appropriate account number.
2. From the Source Account list, select appropriate account number.
3. In the Repayment Amount field, enter the partial payment amount.
4. Click Repay.
   OR
   Click Cancel to cancel the transaction.
   
5. The Review screen appears. Verify the details, and click Confirm.
   OR
   Click Edit to make changes if any. User is directed to Loan Repayment – screen with values in editable form.
   OR
   Click Cancel to cancel the transaction.
6. The success message of Loan Repayment appears along with the transaction reference number.
   Click OK to complete the transaction and navigate back to ‘Dashboard’.

FAQs

Can I perform repayment of the Loan 24/7, on the Online Platform?

Financial Transactions, such as repayment of loan will be allowed within the business hours (or the working window of the transaction.

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