Defining a holiday schedule

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Defining a holiday schedule

You can define holiday schedules for a loan product, whereby, no bills are generated during the holiday period and no payments are due from the borrower. The amortization schedule factors in the holiday schedule for a contract. The interest however, continues to be accrued as usual.

At least one holiday schedule must be defined in the product, to make the holiday schedule feature available while creating or rescheduling a contract. In case a contract does not have any holidays, you can delete the schedule entry at the time of creation of contract.

Note:

If you add a holiday schedule to an existing loan product, it is available only to contracts created subsequently. Existing contracts are not impacted by this change to the lending product definition.

Prerequisites

The following are the prerequisites to defining a holiday schedule:

  • Financial Calculator version is 3.1 or higher.
  • Loan is a regular or amortization based loan.

Steps

Perform the following steps to define the holiday schedule:

  1. Log in to your Salesforce account.

  2. Click Lending Products.

  3. Do one of the following:

    1. Click New and create the lending product and save it.

    2. Click the required lending product.

  4. Scroll down to the related lists and click Holiday Schedule.

  5. Click New Holiday Schedule.

  6. Specify the Holiday Schedule Name.

  7. Specify the schedule Start Date and End Date.

  8. Select the Holiday Type. This indicates the due type which must not be billed during the holiday period. For example, Principal, Interest, or, Principal and Interest.

  9. Select the Recurring checkbox if the specified holidays are applicable each year. 

  10. Specify the Sequence number. If none is specified, the system automatically assigns the sequence in the order of creation.

  11. Click Save or Save&New to define more schedules.

Field reference

Field NameDescription
Holiday Schedule NameThe name of the holiday schedule.
Start DateThe date starting which bills and payments must not be due on the contract.
End DateThe date up to which bills and payments must not be due on the contract.
Holiday TypeThe components which must not be billed during the holiday schedule. This can be Principal, Interest, or Principal&Interest.
RecurringIndicates if the holiday must be applied each year.
SequenceThe sequence number of the schedule, in case multiple schedules are defined.

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