Manual Closure of a Loan
Overview
A loan closes when no dues are left to be paid, or when you do a complete payoff. For an FIT loan, the loan closes when all the remaining dues are paid, and no further draw downs are made on the loan.
With the Oxygen release, however, you have the flexibility to decide whether you can close the loan manually or allow the system to close it automatically once the outstanding amount has been paid off. This flexibility is achieved with the help of the Manual Loan Closure flag.
If the Manual Loan Closure flag is enabled on a loan, the loan can only be closed manually and does not close on its own when the relevant conditions are satisfied. A loan can be manually closed if either the payoff amount is zero or the loan is in the Active - Marked for Closure status.
Key Concepts
Manual closure of a loan can be performed by enabling the Manual Closure flag in the Additional Parameters. The default state of this flag is disabled.
If the Manual Closure flag is enabled on a FIT-enabled loan, the loan does not close automatically once it crosses the Draw Period End Date even if all the remaining dues such as the principal, interest, fees, and additional interest are paid.
The value of the Last Transaction Type in the contract is changed to Manual Loan Closure.
A manually closed loan can be restored back to its previous state by reversing the OLT of the type Manual Loan Closure.
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On reversing a Manual Loan Closure OLT:
The loan is restored back to its previous state.
The Manual Loan Closure OLT is marked as reversed.
The Last Transaction Type restores to the previous transaction type.
Another OLT of the type Manual Loan Closure Reversal is created.
Enable Manual Closure of Loan
To enable the manual closure of loan, the Manual Closure flag needs to be enabled while performing the following actions:
Creating a Contract
Editing a Contract
Editing a Lending Product
While Creating a Contract
Prerequisites
Before enabling the manual closure in a loan, ensure that the following prerequisite is met:
A lending product is created.
Steps
To enable the Manual Loan Closure flag in a loan, perform the following steps while creating a contract:
Log in to your Salesforce account.
Click (App Launcher).
Search for
CL Loan
, and then click it.Go to CL Contracts > New.
-
Select the mentioned product type, and in the Additional Parameters section, select the Manual Closure checkbox.
Specify the other required details, and then click Save.
While Editing a Contract
Prerequisites
Before enabling the manual closure in a loan, ensure that the following prerequisite is met:
A contract is created.
Steps
To enable the Manual Loan Closure flag in a loan, perform the following steps while editing a contract:
Log in to your Salesforce account.
Click (App Launcher).
Search for
CL Loan
, and then click it.Click the CL Contracts tab, and then from the list of contracts, select the required CL contract ID.
On the CL Contract page, click Edit Additional Parameters.
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In the Additional Parameters section, select the Manual Closure checkbox, and then click Save.
While Editing a Lending Product
Prerequisites
Before enabling the manual closure in a loan, ensure that the following prerequisite is met:
A lending product is created.
Steps
To enable the Manual Loan Closure flag in a loan, perform the following steps while editing a lending product:
Log in to your Salesforce account.
Click (App Launcher).
Search for
CL Loan
, and then click it.Go to Lending Products > View/Edit Lending Products > Loan Products, and then click Edit Additional Parameters.
-
In the Additional Parameters section, select the Manual Closure checkbox, and then click Save.
Close a Loan Manually
Prerequisites
Before closing the loan manually, ensure that one of the following prerequisites is met:
A loan contract having a payoff amount as zero.
A loan contract having a status as Active Marked for Closure.
Steps
To close a loan manually, perform the following steps:
Log in to your Salesforce account.
Click (App Launcher).
Search for
CL Loan
, and then click it.Click the CL Contracts tab, and then from the list of contracts, select the required CL Contract ID.
-
On the CL Contract page, click (Loan Quick Menu).
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In the Loan Quick Menu, click Loan Actions, and then scroll down and click Manual Closure.
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In the Manual Loan Closure window, click Confirm.
Reverse the Manual Loan Closure
Prerequisite
Before reversing the manual closure of loan, ensure that the following prerequisite is met:
A loan is closed manually.
Steps
To reverse a manually closed loan, perform the following steps:
Log in to your Salesforce account.
Click (App Launcher).
Search for
CL Loan
, and then click it.Click Contracts, and select the required CL Contract ID.
Go to Transactions > Other(s).
Click the required Other Transaction ID that has the TRANSACTION TYPE as Manual Loan Closure.
Click the highlighted arrow of the Other Loan Transaction page, and then from the list, select Manual Loan Closure Reversal.
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Click Confirm.
The OLT is marked as reversed.
Scenarios
This section explains the actions that take place in various scenarios.
These scenarios are illustrated with the help of the following table:
Scenario | Result |
---|---|
Perform a manual closure of a loan in which:
|
An error message is displayed stating, CL012081: For closing the contract: LAI-00000001, status should be Active - Marked for Closure or Payoff amount should be 0. |
Do not perform a manual closure of a loan in which:
|
|
Perform a manual closure of a loan in which:
|
|
Perform a manual closure of a loan in which:
|
|
Perform a manual closure reversal of an OLT of the loan. |
|
1. Perform a manual closure of a loan in which:
2. Then do a Manual Closure Reversal of the OLT. |
1. On closure:
2. On reversal of the Manual Closure:
|
Perform a manual closure of a loan in which:
|
|
Perform a manual closure of a loan in which:
|
|