Terminating a Loan
  • 20 Nov 2023
  • 1 Minute To Read
  • Dark
    Light
  • PDF

Terminating a Loan

  • Dark
    Light
  • PDF

Article summary

Early Access Feature
If you would like to request early access to this feature, please get in touch with your Mambu Customer Success Manager to discuss your requirements. For more information, see Mambu Release Cycle - Feature Release Status.

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:

  1. Open the loan account.
  2. On the right-hand side of the screen, select Close > Terminate.
  3. Enter the reason for terminating the loan.
  4. Choose the current date or a date in the past.
  5. Confirm.

The Terminate loan account option under Close

Please note

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:

GET /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.

  1. Open the loan account overview page and go to the Transactions tab.
  2. Find the terminated transaction and, on the right-hand side of the screen, select Actions > Adjust.
  3. Select Undo Loan Account Termination Transaction.

Adjust the terminate transaction to undo the loan account termination

Please be aware

You can't undo an account termination if there is a transaction posted after the termination that cannot be adjusted (such as INTEREST_LOCKED).


Was this article helpful?

ESC

Eddy, a generative AI, facilitating knowledge discovery through conversational intelligence