Waive Interests and Payments
You can waive off the charges, interest, interest on arrears and charges that are unpaid as well as paid.
For details on how to perform a waiver action, refer to Perform a Waiver Action.
For details on how to reverse a waiver action, refer to Reverse a Waiver Action.
For details on how to waive paid charges , refer to Waiver of fees post payment of fees.
Impact of a waiver action
- A loan payment transaction (LPT) of the Payment Type 'Waived' is created.
- The waiver transaction is listed under the following sections for a contract:
- Transactions > Payment(s)
- Transactions > Other(s)
- Details > Transaction Summary
- Details > Account Balances
- After a waiver action, the next due bill reflects the amount that is to be paid after the deduction of the waived amount.
- The maximum amount that can be waived off is populated in the Waive Amount field of the Waiver screen.
Perform a waiver action
Prerequisites
- Interest or charges accrued but not paid.
- Loan contract is in Active-Good Standing or Active-Bad Standing status.
- If you are upgrading to CL Loan 2.4008, you have run the upgrade script.
User interface reference
Steps
Perform the following steps to waive the interest or interest on arrears or unpaid or paid charges:
Log in to your Salesforce account.
Click CL Contracts and open the contract for which you want to waive interest or charges.
In the left navigation bar, go to Loan Quick Menu > Loan Actions > Waiver Action.
The following Waiver window appears.
Provide the details as described in the following table, and then click Save:
Note:As an example, you can refer to the preceding image.
| Field | Action & Description | |
|---|---|---|
| Waiver Type = Interest Waiver | Loan Account | This field contains the Loan Account ID. |
| Transaction Date | Select the date on which this transaction was created. | |
| Waive Amount | Enter the maximum amount that can be waived off. | |
| Waive Percentage (%) | Enter the percentage of the remaining interest that you want to waive. | |
| Total Interest till Transaction date | This field contains the total interest calculated till the Transaction Date. | |
| Waiver Type = Charge Waiver | Loan Account | This field contains the Loan Account ID. |
| Transaction Date | Select the date on which this transaction was created. | |
| Waive Amount | Enter the maximum amount that can be waived off. | |
| Waive Percentage (%) | Enter the percentage of the remaining interest that you want to waive. | |
| Total Charge Amount till Today | This field contains the total charge amount calculated till today. | |
| Fee Type | Select the fees that you want to waive. | |
| Waiver Type = Paid Charge Waiver | Loan Account | This field contains the Loan Account ID. |
| Charge Name | This field contains the name of the charge. | |
| Charge Type | This field contains the type of charge to be waived. | |
| Creation Date | Enter the date when the waiver needs to be done. | |
| Paid Amount | This field contains the amount that has been paid. | |
| Waive Amount | Enter the maximum amount that can be waived off. | |
| Waive Paid Charge | Enter the amount that has been paid and need to be waived. | |
| Adjustment Type | Select from the drop-down as to how the interest would be adjusted. The adjustment type can be either be Excess or Principal . | |
| Waiver Type = Interest on Arrears Waiver | Loan Account | This field contains the Loan Account ID. |
| Transaction Date | Select the date on which this transaction was created. | |
| Waive Amount | Enter the maximum amount that can be waived off. | |
| Waive Percentage (%) | Enter the percentage of the remaining interest that you want to waive. | |
| Total Interest on Arrears till Today | This field contains the total Interest on Arrears calculated till today. | |
| Waiver Type = Additional Interest Component Waiver | Loan Account | This field contains the Loan Account ID. |
| Transaction Date | Select the date on which this transaction was created. | |
| Waive Amount | Enter the maximum amount that can be waived off. | |
| Waive Percentage (%) | Enter the percentage of the remaining interest that you want to waive. | |
Reverse a waiver action
To reverse a waived off amount perform the following steps:
- Depending on the type of waiver, add the Charge Waiver Reversal or Interest Reversal or IOA Waiver Reversal button from the Edit Layout section
- In the Other Loan Transactions tab, click the waiver reversal button. A payment reversal transaction is created.
Example: Waive a charge in a capitalized loan
Let us create a loan where capitalization is enabled, Interest Posting Frequency set to Billing Frequency and Contract Date as April 12, 2022, and disburse it.
Let us go to July 20, 2022. Let us create a charge and it will be capitalized. we can go ahead and pay the charge.
Let us go to July 30, 2022 and create an LPT which will change the LAD.
Let us go to August 12, 2022, which is the next Interest Posting Date. The interest is posted.
Now let us go to August 20, 2022, and waive the charge that was created on July 20, 2022.
The values must be updated:
Charge is waived off .
The next IPT is recalculated as follows since the charge was capitalized.
Let us go to June 12, 2022. the values must be updated as follows:
The IPT gets recalculated only when a charge is capitalized.
Steps
Log in to your Salesforce account.
Click CL Contracts and create a new contract.
Go to Loan Quick Menu > Loan Actions > Waiver Actions.
Click Waiver Type and select Charge Waiver.
The paid charge is waived off.
