Writing Off a Loan
  • 16 Nov 2021
  • 1 Minute To Read
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Writing Off a Loan

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Writing off a loan account takes the remaining loan balances off the portfolio, registering them as a loss.

To write off a loan account:

  1. Open the loan account.
  2. On the right-hand side of the screen, select Close > Write Off. In the Write Off Loan Account dialog, you'll see an overview of the loan's Outstanding Balances consisting of principal, interest, fees and penalties.
  3. Add a note about the reason you are writing off the account.
  4. Select Write Off.

Write Off Loan Account option under Close. Other available buttons are pay off, refinance, reschedule and terminate.

This will settle the remaining loan balances with a specific transaction type (Write off), and close the account, changing its state to Closed (Written off) .

Please Note
A Loan account can only be written off if the minimum days in arrears before write off setting allows it.

Collecting Securities

If the loan has guaranteed amounts from other client's savings accounts, you can collect the guaranteed amounts before you write off the loan account. If selected, these amounts will be withdrawn from the deposit account and entered as a payment on the loan account before the write off transaction is posted, thus effectively reducing the amount to be written off.

Please Note
Only users with the specific "Collect Securities" permission have access to this additional automation.

Undoing a Write Off

You may need to revert the write off action and change the state of the loan account.
To undo a write off:

  1. Open the loan account.
  2. On the right-hand side of the screen, select More > Undo Write Off.
  3. Add a comment about the reason you are undoing the write off.
  4. Select Change State.

This will reopen the loan account and revert the loan write off transactions, so the account will go back to the state it was before the write off.


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