Pay Off a Loan

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Pay Off a Loan

Overview

Loan payoff, or early repayment, occurs when a borrower completely repays the pending loan amount through a single payment. This is applicable for all lending products in CL Loan. 

Payoff Tolerance

If the payoff payment amount is within the payoff tolerance limit, the loan goes to Active-Marked for Closure state. Payoff tolerance is the maximum amount that the system can allow to remain unpaid while paying off a loan. This applies to payoff done via the Payoff button and also any regular payment where the amount is at least (payoff - payoff tolerance). If a payment is a payoff, then the last accrual date (LAD) is set to the payoff date.

Total Payoff Amount

The total pay-off amount in CL Loan is calculated by adding:

  • Principal remaining
  • Interest remaining
  • Fees remaining
  • Interest accrued till the payoff date
Note:

For information on recording a loan payoff transaction, see the Record a Loan Pay-Off Payment section of this guide.

Payoff a Loan

Prerequisites

None.

Steps

Perform the following steps to pay off a loan :

  1. Log in to your Salesforce account.
  2. Select the required CL Contract ID.
  3. Click Transactions.
  4. Select Payments.
  5. Click Loan Pay Off.
  6. Select the required Payment mode. These can be any payment mode that you have set up, such as, Cash, Check, Wire, ACH to name a few.
  7. Click Save. The status of the loan changes to Closed- obligations Met. 

If any payoff fee is present in the loan's fee set, it is reflected in the total payoff amount when a payoff quote is generated. A charge is created for the same, which is satisfied through the payoff amount. After a successful loan payoff, the principal remaining, fees remaining, interest remaining, all become 0 (zero).

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