Terminating a Loan

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.

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.