- 05 Dec 2024
- 1 Minute To Read
- Print
- DarkLight
- PDF
Terminating a Loan
- Updated On 05 Dec 2024
- 1 Minute To Read
- Print
- DarkLight
- PDF
When you terminate a loan, the total outstanding principal plus all accrued charges become due immediately (as of the termination date).
To terminate a loan account, you must have the Terminate Loan Accounts permission.
This feature is currently available for:
- Dynamic Loans
- Interest calculation method: Declining Balance Equal Installments
- Pre-payment allocation: On upcoming pending installment only
- Pre-payment recalculation: Reduce Number of Installments (RNI)
- Pre-payment recalculation: Reduce Amount per Installment (RAI)
- Types of fee allowed: Manual Fees only
Terminating a loan account
To terminate a loan account:
- Open the loan account.
- On the right-hand side of the screen, select Close > Terminate.
- Enter the reason for terminating the loan.
- Choose the current date or a date in the past.
- Confirm.
When a loan account is terminated, the number of installments in the schedule is kept the same, only the state of the installments is changed.
You can also terminate a loan using the API by making a request to a dedicated endpoint:
POST /api/loans/{loanAccountId}:terminate
using the payload
{
"valueDate":"2021-01-30T00:00:00+00:00",
"notes":"Notes about the account termination process"
}
For more information, see our API documentation.
Undoing loan account termination
You can undo the termination of a loan account by adjusting the termination transaction.
- Open the loan account overview page and go to the Transactions tab.
- Find the terminated transaction and, on the right-hand side of the screen, select Actions > Adjust.
- Select Undo Loan Account Termination Transaction.
You can't undo an account termination if there is a transaction posted after the termination that cannot be adjusted (such as INTEREST_LOCKED
).