Extend a Loan Contract
A borrower may proactively request a lender to defer the remaining bills and thereby the payments on a loan. The deferral of a bill results in the extension of the maturity date and prevents a loan account from becoming delinquent. The borrower must contact the lender before the bill is generated for the current term. Else, the borrower must make the current payment as per schedule and the extension would apply in the next loan term. Loan extension takes into account billing and recurring ACH, if enabled. If the lender has set up pre-bill days, then the extension must be done those many days prior to the payment due date.
CL Loan also provides lenders the ability to reverse a loan extension if needed.
The loan extension is always applied on the unbilled payments.
Example
If the last due date is 10/12/2016, then, after a deferral by 2 months, the next due date becomes 1/12/2017. No bills are generated for November and December.
Also, if the maturity date is 2/12/2017, the current maturity date becomes 4/12/2017.
Prerequisites
The following are the prerequisites for extending a loan contract:
The loan is fully disbursed.
The loan is in Active-Good Standing status.
The payments are unbilled.
Steps
Perform the following steps to extend a loan contract:
Log in to your Salesforce account.
Click CL Contracts.
Select the required CL Contract ID.
Click Repayment Schedule.
Click Extension.
Specify the # of period deferrals.
Click Save.
Field reference
| Field Name | Description |
|---|---|
| Repayment Schedule | It is the detailed outline of a borrower's loan application with the original loan amount, showing when the payments are due and how much of the payment goes towards the interest and principal repayment |
| #of period deferrals | The number of periods by which payment is deferred. Deferrals are considered in conjunction with the payment frequency specified for the contract. For example, if payment frequency is monthly and number of period deferrals is 2, then payment is deferred by two months. The deferment of a bill results in the extension of the contract maturity date. |