Installments on Non-Working Days
- 26 Oct 2021
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Installments on Non-Working Days
- Updated On 26 Oct 2021
- 1 Minute To Read
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Article summary
In the Repayment Scheduling section of the Creating a New Loan Product form, users can determine how loan repayments are handled on non-working days. There are four options available: 1. **Do not reschedule repayments**: Schedules remain unchanged, and installments due on non-working days are left as is. 2. **Move ahead to next working day**: Installments due on non-working days are rescheduled to the next working day. 3. **Move backward to previous working day**: Installments due on non-working days are moved back to the previous working day. 4. **Extend Schedule**: If an installment is due on a non-working day, that installment and all subsequent ones are shifted by one period, effectively extending the loan duration. For example, a weekly installment loan would skip the week of the holiday, pushing the entire schedule one week ahead while maintaining the original payment day.
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This setting can be found in the Repayment Scheduling section of the Creating a New Loan Product form and determines what happens to loan repayments that fall on non-working days.
Do not reschedule repayments
Mambu will not modify schedules for non-working days. If an installment is due on a non-working day it will be left as it is.
Move ahead to next working day
Mambu will modify loan schedules, so any installment that would be due on a non-working day will be moved ahead to the next working day.
Move backward to previous working day
Mambu will modify loan schedules, so any installment that would be due on a non-working day will be moved back to the previous working day.
Extend Schedule
When an installment is due on a non-working day, Mambu will shift that installment and all further installments by one installment period.
For example, for a weekly installment loan where an installment would be due on a non-working day, the week with the holiday will have no installment. The whole remaining schedule will be pushed one week ahead, meaning that the loan will keep its payment day and be one week longer due to the skipped week.
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