Rescheduling a line of credit

Lenders can reschedule a line of credit contracts to change the due date and frequency of payment.

The revised due date becomes effective from the next bill generation date that occurs after the date of reschedule. For example:

Last Bill Generation Date = 20-Jan-2018

Next Bill Generation Date = 20-Feb-2018

Current Frequency of Payment = Monthly

Current Date = 12-Feb-2018

Then:

User Requirement

Reschedule Action

Change the due date of the bills to the 10 of every month

The repayment start date is 10-Mar-2018 when doing the reschedule action.

With Pre-bill Days: If pre-bill days are set up, then, the bill generated on 20-Jan can have a due date of 15-Feb. Now, on 12th Feb when the user does a reschedule transaction, the user must specify a repayment start date later than 15-Feb-2018. The system does not modify the due date of already generated bills.

Change the due date of the bill to the 25 of every month

Next bill generation date becomes 25-Feb-2018 and subsequent bills are generated on the 25th of every month.

Lenders can also change the frequency of payment, say, from monthly to weekly or quarterly. For example:

Last Bill Generation Date = 20-Jan-2018

Next Bill Generation Date = 20-Feb-2018

Current Frequency of Payment = Monthly

Current Date = 15-Feb-2018

Then,

User Requirement	Reschedule Action
Change the frequency to Weekly	The system adds weeks to the last bill generation date (20-Jan-2018) until it crosses the current system date to arrive at the next bill generation date. In this case the next bill generation date becomes 17-Feb-2018.
Change the frequency to Quarterly	The next bill generation date becomes 20-Apr-2018

The system considers any pre-bill days specified for the contract while arriving at the revised bill generation dates. In the above example for changing the frequency to Weekly, if pre-bill days specified on the contract are 5, then, the system calculates the next bill generation date as 25 Feb - 5 days, that is, 20 Feb.