Payment Holiday

A payment holiday is a break in payments that you may offer clients when they have difficulty paying back a loan. No fee or penalty is charged during a payment holiday period, but you may configure the payment holiday so that interest is still accrued and applied after the payment holiday ends.

Setting up payment holidays

To set up a payment holiday:

1. When editing a loan product, in the Repayment Scheduling section of the form, under Repayment Schedule Editing, select Configure Payment Holidays.
2. Open the loan account.
3. On the right-hand side of the screen, select More > Edit Schedule.
4. In the Editing Repayment Schedule dialog, under Payment Holidays, select the check boxes next to the installments for which you want to set up a payment holiday.
5. Save the changes.

You can also set up a payment holiday via API v1.0 using the repayments endpoint:

/loans/{loanAccountId}/repayments

For more information, see Update Loan Repayments in our API v1.0 documentation.

With Payment Holiday, you can choose to apply:

• No principal, no interest, meaning:

  • Installment(s) is marked as Grace.
  • Principal and interest are set to 0.
  • The schedule is extended with one or more installments depending on how the payment holiday was defined.
  • The maturity date of the loan account will be extended with the number of installments marked as Payment Holiday.
  • No penalties or fees are charged.

• Principal, but no interest: The interest rate is set to 0.

Applying interest after payment holidays

After the payment holiday period ends, you can apply the accrued interest using the Mambu API. The way that you do so differs, depending on whether the loan is dynamic term or fixed term. For both operations, the total due will be increased by the interest amount.

Dynamic term loans

For dynamic term loans, you will use the v2 API. Make a POST request to the /loans/{loanAccountId}:applyInterestendpoint, specifying isPaymentHolidaysInterest=true, and specifying the value of paymentHolidaysInterestAmount as the amount of interest accrued during the payment holiday that you wish to apply with the current installment.

For more information and request examples, see Loan Accounts - applyInterest in our API v2 Reference.

Fixed term loans

For fixed term loans, you will use the v1 API. Make a PATCH request to the /loans/{loanAccountId}/repayments endpoint, specifying how much of the interest accrued during the payment holiday you wish to apply with the remaining installments.

For more information and request examples, see Update Loan Repayments in our API v1 Reference.