Changing the due day
CL Loan provides the ability to change the due day of payments such that it aligns with cash flows.
For example, if a loan is due on the last day of every month and the borrower requests to change the due day to the 5th day of every month, it can be changed.
Assume that a CL contract has the following details:
| Due Day | Month | Payment Due |
|---|---|---|
| 31st | January | $200.00 |
| 28th | February | $200.00 |
| 31st | March | $200.00 |
On 10th February, the borrower requests for a payment due day change to align with pay date to the 5th day of the month. The lender agrees to change the day to the 5th of the following months.
| Due Day | New Due Day | Month | Payment Due | Due Dates Change Details |
|---|---|---|---|---|
| 31st | No change | January | $200.00 | Prior due dates are not modified |
| 28th | 5th | February | $200.00 | Future due dates are updated |
| 31st | 5th | March | $200.00 | Future due dates are updated |
Changing the due day changes the Next Due Date and does not affect the Oldest Unpaid Due Date. Changing the due day also affects the interest accrued depending on the difference in the number of days. When the new payment date is later than the current due date, more interest is accrued than is displayed in the Amortization Schedule. In such cases, the amount of the last installment is increased to accommodate the additional dues. The repayment schedule is changed accordingly to reflect the impacts of the due day change
Prerequisites
The following is the prerequisite to change the due day:
The loan is fully disbursed.
Steps
Perform the following steps to change the due day:
Log in to your Salesforce account.
Click CL Contracts.
Select the required CL Contract ID.
In the Loan Quick Menu, go to Loan Actions, Change Due Day. The Due Date Change page appears with the details of the current due day.
Specify the New Due Date. This must be later than the first payment date of the contract.
Click Save to change the due day.
Field reference
| Field Name | Description |
|---|---|
| Loan Quick Menu | Loan Quick Menu provides easy access to the various loan parameters such as charges, payment transactions, repayment schedule, the various loan actions and Account Statements. |
| New Due Date | It is the date on which you want the next bill to be generated. |