Editing / Customizing Repayment Schedules
  • 22 Nov 2019
  • 5 Minutes To Read
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Editing / Customizing Repayment Schedules

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Overview

The "Edit Schedule" option is available for a loan account under the “More” options button, if the setup at the Product Level allows for it. For more details please see Repayments Schedule Editing


Editing Fixed Loan Schedules

To edit the schedule for Fixed Loans: Open the loan account > click on More - Edit Schedule > make the changes > Save Changes.

Editing Repayment Schedule screen where Due Dates, Principal and Interest can be edited.

Please Note
You cannot increase the total interest, just decrease it. After making interest reduction changes on Fixed loans, the interest posted on the account will not match the interest rate of the product. The manual editing will override the automatically calculated interest.

Editing Dynamic Loan Schedules

To edit the schedule for Dynamic Loans: Open the loan account > click on More - Edit Schedule > make the changes > Save Changes.

  • Edit Schedule function is not available when the account is locked
  • Paid installments and installments with Interest Applied transactions cannot be edited
  • Partially Paid installments (that don't have Interest Applied), are be allowed to be edited
  • Editing Schedule is not available in the “Approved” loan account state

Additional options

  • Recalculate - allows you to preview the adjusted schedule before saving the changes.
  • Save - will recalculate the schedule to reflect the changes and save it immediately (with no option to review before saving changes). In order to only view the schedule before saving it - the Recalculate function should be used.

Adjusting Payment Dates

  • The due dates for the installments are mandatory and must be always in an ascending order
  • The due dates must not be before the disbursement date
  • There can be multiple installments due in the same day
  • If the account is assigned to a Line of Credit: the last installment due date will be validated against the “Line of Credit valid until date”
  • For Equal Installment loans: when the due date is changed - the original total due amount will not change (interest and principal will be adjusted accordingly, but the total amount will stay the same)

Adjust Principal Payment Schedule

  • Principal can only be moved between the instalments, i.e. the total outstanding balance needs to be fully allocated at all times. It is therefore not possible to increase or reduce the total outstanding balance.
  • The installment that has the principal edited and defined by the user will not be changed by any future recalculations made by Mambu
  • Installments with zero principal during pure grace period cannot be edited
  • For Equal Installment loans: Principal on the last installment is not editable. When the principal is edited, the total due amount on the previous installments will not be changed, and only the next installments after the edited one will have equal installments recalculated (based on the remaining principal balance and remaining number of installments, including installments with custom principal).

Adjust Number of Installments

  • Users can add more installments or delete existing ones, however the total number of installments will be validated against the Minimum and Maximum installments allowed within the product constraints
  • If a new installments is added on Declining Balance loan - the principal for this installment needs to be specified and adjusted manually
  • Installments with zero principal during pure grace period cannot be deleted
  • Only installments that don't have anything paid can be deleted
  • For Equal Installment loans: If a new installments is added and left with no principal, it will be calculated automatically after clicking on the Recalculate button to keep the equal installment amount. However, If the user fills in a principal, it will be considered custom.

Editing Revolving Credit Loan Schedules

Due dates in the Revolving Credit accounts are not always fixed, nor predefined for the full term of the loan at the moment when the contract is signed with the client. However, you can customize the schedule for Revolving Credit loan accounts to accommodate for such scenarios when the instalment due dates are aligned to the clients’ salary pay dates, which effectively means that they may fall on different days each month.

After adding a new Revolving Credit loan account, you will have the option "Edit Schedule" under the "More" button, allowing you to edit the schedule while the account is in Partial Application, Pending Approval or Active (In Arrears, Locked included) states.

Schedule editing in Pending Approval state, no custom instalment manually added

Editing Repayment Schedule on Revolving Credit while in Pending Approval state.

Schedule editing in Active state, custom instalments manually added

Editing Repayment Schedule on Revolving Credit - custom instalment manually added

If the account has installments due or already defined

You can add or delete instalments, however the delete functionality is only available for instalments that are manually added, it does not apply for instalments added by the system. When adding a new instalment, users can define the due date, while principal and interest due will be empty. They will be filled in when the instalment will become due. Adding new instalments before already paid instalments will not be possible.

If the account doesn't have installments due or defined

  • An empty instalment will appear by default. You will be allowed to add or delete instalments, with the same constraints as mentioned above.
  • The instalments will be shown on the Schedule, even if they do not have any principal and interest allocated, with Pending state as default.

On End of Day processes, or when the disbursement is backdated

  • the due and past-due instalments will be populated with interest and principal
  • Instalments will be added according to the "fixed days of month" setting on the account, if there's still principal balance to be allocated, after the last custom instalment due date. If a custom date instalment was added before or after the date defined on the product (fixed days of month), then Mambu will not add an additional instalment.
  • Instalments will be marked as Grace if the instalment is due or past-due but no principal or interest is allocated to it
Please Note
The changes available will always depend on the product settings (will be logged under Activities) and to be able to edit a repayment schedule, the user needs to have permission to Edit Schedule.

The following product settings:

  • Declining Balance Dynamic Loans with Pre-Payments Recalculations methods set to either No Recalculation or Recalculate the Schedule, Keep the Same Principal Amount, if you click on Calculate Schedule button under the Schedule Preview section, you will be able to edit/adjust the schedule directly, by changing the due dates, allocation of the principal, or adding and deleting installments.

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