Reversing a line of credit disbursal

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Reversing a line of credit disbursal

You may need to reverse a disbursement in situations where a disbursement transaction was made in error, or if the borrower wants to postpone availing the loan amount. After the reversal, the amount is reduced from the disbursed amount. If the disbursal is the first disbursal on the LOC, the Amount to Current, which indicates the total amount due from borrower, becomes zero. If the contract becomes delinquent, Amount to Current includes delinquent amount plus any unpaid fees on the account. This field is displayed on the Details page of the contract. 

Note:

The reversal is possible for LOC disbursements you make after upgrading to CL Loan 2.1004 or later versions.

Example:

Suppose, a borrower logs in to the holiday reservation website. While checking out, the borrower chooses an option to pay the amount in EMIs via the lender (with whom borrower has an approved LOC). The borrower successfully books the holidays with the holiday travel company. Now, the lender withdraws booking amount from borrower's active LOC account and pays it to the holiday travel company (everything through integration, there is no manual process involved).

Now suppose, for some reason, flights are cancelled or the borrower chooses to cancel the trip. In such a case, the borrower logs in to the holiday travel website and cancels the booking. In this scenario, the holiday travel company returns money to the lender and the lender reverses the LOC disbursal that had been used while making the reservation.

Prerequisites

The following is the prerequisite to reversing a disbursement for LOC:

  • The disbursal is the latest transaction on the loan. If subsequent transactions exist, they must be reversed first.

Steps

Perform the following steps to reverse a disbursement for LOC:

  1. Log in to your Salesforce account.

  2. Click CL Contracts. The list of contracts is displayed.

  3. Click on the CL Contract ID for which you want to reverse the disbursal.

  4. Click Transactions.

  5. Click on the Loan Disbursal Transaction ID to be reversed.

  6. Scroll down the page to Disbursal Transaction Reversal section.

  7. Click New Disbursal Transaction Reversal. To create a reversal transaction.

  8. Select the Rejected checkbox. This indicates that the payment transaction is rejected before payment reversal.

  9. Specify the Adjustment Transaction Date of disbursal reversal. It is the date on which the adjustment transaction for the disbursal reversal takes place.

  10. Click Save. The disbursal transaction is reversed and the borrowers account reflect the balance prior to the disbursal.