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 the 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 > Toggle menu > Accounts > Loans and Finances > Repayment
OR
Dashboard > Accounts > Loans and Finances > Overview > Quick Links > Repayment
Field Name |
Description |
---|---|
Select Account |
Loan account number along with the account nickname (if set by the user). For more information on Account Nickname, click here. |
Pending Arrears |
Pending arrears amount in the account. It is sum of Principal and Interest arrears. |
Outstanding Principal |
Outstanding principal balance in the account. |
Disclaimer |
Text message informing the user about the appropriation of funds in case of a partial payment. |
Source Account |
Account with the account nickname (if set by the user) for making repayment. 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: