Manage loan contract

Manage loan contracts by activating, blocking, unblocking, defaulting, closing, or reactivating them. To perform any of these actions, click the corresponding section:

• Activate loan contract

• Block loan contract

• Unblock loan contract

• Default loan contract

• Close loan contract

• Reactivate loan contract

• Cancel loan contract

Activate loan contract

Loan contracts are initially created in a Draft status. To make the contract operational, it must be activated.

To activate a loan contract:

1. Find the loan contract in question.

2. Click Confirm draft.

1. Confirm your action.

For loan contracts that were previously Active, only one Draft version can exist at a time. When the draft is activated, the previously active version is in the Replaced status.

Block loan contract

Use the block contract feature to temporarily stop loan disbursements. To resume disbursements, simply unblock the contract.

To block a loan contract:

1. Find the loan contract in question.

2. Click Block contract.

1. Confirm your action.

Unblock loan contract

Use the unblock contract feature to resume loan disbursements under the contract.

To unblock a loan contract:

1. Find the loan contract in question.

2. Click Unblock contract.

1. Confirm your action.

Default loan contract

If the borrower is not making loan repayments, you can terminate the loan contract by defaulting it. The defaulted loan is transferred to debt.

To default a loan contract:

1. Find the loan contract in question.

2. Click Default contract.

1. The Default contract modal opens.

2. Select the defaulting reason, add a comment if needed, and click Default to confirm the action.

Defaulting cannot be reverted.

Close loan contract

A loan contract may be closed after completing its lifecycle, provided the following conditions are met:

• The end date of the contract has been reached.

• No outstanding amounts remain.

• All components show zero balance and zero debt.

• There are no remaining funds (cash).

• All invoices have been paid in full.

To close a loan contract:

1. Find the loan contract in question.

2. Click Close contract.

1. Confirm your action.

Reactivate loan contract

Reactivating a loan contract is used to reopen a contract that has been previously closed. Reactivation is only permitted when the person is active. If the contract’s shadow account was closed during the closing process, a new shadow account must be created before reactivation can proceed.

To reactivate a closed loan contract:

1. Find the loan contract in question.

2. Click Reactivate contract.

1. The Please enter reactivation reason modal opens.

2. Select the reason code, optionally enter a description, and then click Reactivate.

Cancel loan contract

When the loan contract is in Draft status, you can either activate it or cancel it.

To cancel a loan contract:

1. Find the loan contract in question.

2. Click Cancel contract.

1. Confirm your action.

Once a draft is canceled, its status changes to Canceled.