How To Stop A Loan Contract

Normally, a loan contract is automatically stopped when the bill segment for the last payment in the amortization schedule is generated for the loan (refer to Finalizing And Closing A Loan).

If a customer decides to payoff a loan before the term is complete, you can:

Transfer to the ontract maintenance page for the loan contract, specify an End Date for the loan, and click Save. This transitions the loan contract to pending stop.

Note: End Date. The loan contract cannot be stopped until the specified end date is reached, so do not specify an end date that is in the future unless you do not want to stop the loan until that date.

Once the loan is in pending stop and the end date has been reached, the system transitions the loan contract to stopped. On the contract's normal bill cycle, the system final bills the contract for any outstanding balance plus accrued interest charges.

If you want to stop the loan and create the final bill immediately, complete these additional steps:

On the loan's contract maintenance page, click the Stop Contract button to transition the loan contract to stopped.
Manually, create a bill for the loan contract. Remember that if you only want to generate a bill segment for a specific contract (e.g., the loan contract), transfer to the bill segment page. From there, you can generate and freeze a bill segment for a specific contract. When finished, return to the bill page and complete the bill.

When the customer pays the final bill, the loan contract is closed by the system.

Fastpath: For more information about contract states, refer to The Lifecycle Of A Contract.