Repayment Allocation Order

For cases of prepayments, partial repayments or fees and penalties payment, the allocation order defined at the product level will determine what will be paid first.

Suppose you wanted the fees to be paid first, then penalties, interest, and finally principal. In this case Fees would be on top of the list and Principal on the bottom.

Set the allocation order

To set the order of the items to be paid:

1. When setting up new loan products, go to the Repayment Collection section of the form.
2. Drag and drop items to arrange them according to the order in which you want them paid on partial or overpayments.

The allocation order you set here can later be changed either by editing the loan product or by making a custom repayment via the API.