Refund Excess Loan Closure Payment

Refund to a borrower may be made whenever there is an additional repayment on the loan account. This amount is stored as Excess amount and is refunded to the borrower's account. This amount must be seen differently from any excess amount that may result due to the loan payment schedule set up on the contract. For example, the payment amount of 209.78 is rounded off to the next digit as 210. Such differences in amounts are settled in the last payment on the loan.

Refund specifically deals with an occasional excessive payment made by the borrower, or scenarios where the last payment on the loan is in excess of the dues. 

For information on refunding a regular payment, see the Reversing and Refunding a Payment Transaction section in this guide.

Prerequisites

The following are the prerequisites to refunding the excess amount of a loan:

• The loan has been paid off successfully .

• The status of the loan account is Closed- Obligations met.

Steps

Perform the following steps to refund the excess amount of a loan:

1. Log in to your Salesforce account.

2. Click   CL Contracts.
   Ensure that the loan account you choose, has the status Closed- obligations met.

3. Click Refund on the Details page. 

4. Specify the Transaction amount to be refunded, which is the excess amount. For example, for the loan amount of 6,00,000, borrower has paid 6,02,000. Then 2,000 is the excess amount that must be refunded. The Excess field in the Account Balance Details section of the loan contract displays the excess amount.

5. Click Save.

When you click Save, the loan application gets updated with the Total Amount Paid as 6,00,000 and Excess amount as 0.00.

Field reference