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Table of Contents (Online Help)

Reschedule Loans

Loan rescheduling refers to re-negotiating / restructuring of a loan between the MFI and the borrower so as to adjust/ revise the original loan terms (Period, Interest or even amount) to make it flexible for the borrower to pay. This could be because the borrower is no longer financially able to meet the original repayment schedule.

Rescheduling of a loan can be done in different ways:
1.You can add some extra installments and repartition the principal amount over the remaining installments;

2. You can change the amounts paid with every installment (as long as the total Principal amount remains equal to the Loan Amount);

3. You can change the remaining due dates, so that the loan remains current (not in arrears).

4. Rescheduling can be done at any point of the loan cycle after approval, but you can only reschedule installments after the last repayment done.

5. Also ensure that the feature "Always Recalculate Interest at Repayment if Declining Balance" under System/Configuration/Loan Product Settings/General is activated.

How to reschedule a loan

To reschedule a loan go to Loans/Reschedule Loan a screen like one below appears.

Choose the loan number e.g. KA/000005 and click next and the system will direct you to the "Reschedule a loan" screen as seen below:

• Loan Number to be rescheduled: Enter the number of the loan you want to reschedule. To pick the loan from the list of loans disbursed by your organization, press the button "Choose", highlight the loan and either double-click on it or press the button "Pick".
• Press "Next" and the information on the loan you have chosen will be brought to the "Reschedule a loan" screen.
• Client: The name of the client selected will automatically be displayed here.
• Loan amount: The loan amount of the client selected will automatically be displayed here
• Interest calculation in days: Tick this option for the system to calculate interest in days.
• Principal outstanding:The principal outstanding of the client selected will automatically be displayed here
• Additional number of monthly installments: Enter here the extra number of installments you want to offer the borrower. e.g. "2" The installment type indicated here will depend on the Loan/Loan application/Loan Entry Part 1.

Note that: If you need to reschedule earlier installments, you can delete the last repayment, reschedule and re-enter the payment. The system doesn't reschedule installments already made. As indicated by the yellow fields.

• Interest: The interest rate appearing here is the one entered at Loan Application but it can be changed to one negotiated with the borrower and the system will charge the addition installments based on this interest rate.

Note that in case you would not want to charge interest on the additional installments, you enter zero in this field.

• Additional interest: The system will compute and display here the interest for the additional period.
• Freeze Interest: This feature will enable the user to stop payment of interest from a given period. Enter the date from when you would want the system to stop charging interest on that loan e.g "03/08/2019". Interest from this day on will be zero as below.

• Please note that to successfully freeze interest and penalties, ensure that the feature "Always recalculate interest at repayment if declining balance" under System/Configuration/Loan Product Settings/General is activated. That is also when the freeze features will be available.

• Freeze Penalties: This feature will enable the user to stop payment of penalties from a given period. The process of freezing penalties is the same as freezing interest above.

Please note that the rescheduling can be done at any point of the loan cycle after approval, but you can only reschedule installments after the last repayment done.

You can change it. If you do not charge interest on the additional installments, enter the interest rate as zero.

If necessary, mark the option "Interest calculation in days?". The "Additional Interest" amount will be calculated automatically.

Please note that this does not change the original interest amount. 

• Fill Repayment Dues: Click on this button and extra installments to the loan repayment schedule appear. You can then redistribute the principal or interest amounts due among the remaining installments

• Reasons: The system will require you to make a comment in this field for you to proceed.

• Due date from: Click on the row, representing the installment, starting from which the client will be paying the new amounts e.g. "01/10/2019".

  The date of that installment will appear in the "Due Date from" text-box you can also enter the date manually.

  Note that to locate the item to adjust, you locate it in the drop-down box under "Column" and click on it. The text-box where you can enter a new value will become available. For our example it is the "Principal Amount".
  

• Column: Click on the drop down to locate the item you want to adjust and click on it. The text-box where you can enter a new value will become available. For our example it is the "Principal Amount". We have added 2 extra installments for the above loan and we want to change the Principal amount to be paid with every installment to 100,000 starting from "01/10/2019".

• Amount due: You have an option of changing the amounts due of Principal Due, Interest Due, Penalty Due and Commission Due to be paid with each installment by selecting it from this column in this case we have used the "Principal Amount". If the new amounts are all equal, you can use the "Update All Dues" button.

  Note that all due dates will be changed in accordance with the "Installment type" set at the Loan Application/Loan Entry Part 1.
  

• Update all dues: You have an option of changing the amounts of Principal Due, Interest Due, Penalty Due and Commission Due to be paid with each installment. If the new amounts are all equal, you can use this button. You enter here a new value of 8,000 for interest and press the "Update All Dues" button. All the due installments, starting from the selected date, will be updated with 8,000

• Please note that If you want to change just a single installment, click on the amount you want to change and overwrite it with the new one directly. You can do this for a particular due date too
  

Click on the "Save" button to save the changes.

To reschedule a group loan, you open the "Reschedule a loan" screen like one below appears

Click on "Reschedule Member Dues" button and an additional screen like one below appears.

• If you want the due amounts of each group member to be changed automatically according to the amounts for the whole group entered in the previous screen, press the button "Calculate Members Dues". Loan Performer will update all members repayment schedules with the new amounts
• If you want to change some member's due amounts manually, first highlight a member on the "Group Members" list. Then change the values you want by clicking on the appropriate cell in the "Group Member Dues" table and overwriting the old amount with the new one.

The feature of reporting due dates to the next or the previous working day becomes active when you save the rescheduled due dates (see "System/Configuration/Set Working Days").

To cancel the changes made and return to the original loan repayment schedule, click on the "Revert" button.

To leave the "Reschedule a Loan" screen without making any changes, press the "Cancel" button.

To reschedule a group loan when tracking is done at group member level:

In this case, in addition to rescheduling a loan at group level, we have to rescheduled all group member installments.

When you open the "Reschedule a loan" screen, there is a button "Reschedule Member Dues" which allows you to make changes in the repayment schedule of each group member.

First make the necessary changes for the group loan following the steps above. Then press the "Reschedule Member Dues" button. It will result in the following "Reschedule Group Member Dues" screen.

the amounts for the whole group entered in the previous screen, press the button "Calculate Members Dues". Loan Performer will update all members repayment schedules with the new amounts.

If you want to change some member's due amounts manually, first highlight a member on the "Group Members" list. Then change the values you want by clicking on the appropriate cell in the "Group Member Dues" table and overwriting the old amount with the new one.

In "This member dues" and "All member dues" the changes of total amounts will be reflected. Make sure that the total Principal amount for the group remains unchanged.

When you have made all the necessary changes, click on the "Update Group Dues" button. If all due amounts tally it will be confirmed by the "Update complete" message. Press the button "Back" to return to the main screen and press "Save" to save the changes.

The changes you have made in the "Reschedule a Loan" module will be reflected in all the relevant loan reports. The rescheduled loans can be found in the "Written-off and Rescheduled Loans Report" available at the Loans/Portfolio Report/Analysis Reports menu.

The rescheduling of loan should have the option of calculating the additional interest on outstanding balance instead of the loan amount (for flat rate only) (for additional installments)

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