Loan capitalisation and deduction
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The loan capitalisation/deduction functionality is designed for adjustment or restructuring of various components of a loan. This feature simplifies the repayment process and can be used to reorganise the loan.
For instance, adding loan fees to the principal balance simplifies the repayment process as the fees are included in the principal amount rather than paid separately. Alternatively, deducting loan fees from the principal before loan disbursement ensures the fees are settled before the loan payout.
Fee capitalisation - adding loan fees or other loan components to the principal balance.
Fee deduction - deducting loan fees or other loan components from the principal before loan disbursement.
The loan capitalisation or deduction can be used in the following use cases:
Activate a contract with deducted activation or disbursement fees.
Activate a contract with capitalised activation or disbursement fees.
To search for existing capitalisations:
Loans > Search > Contracts.
Find a loan contract > click the Contract number to open the contract in question.
From the content menu, choose Billing > Capitalisations.
On the capitalisation details page, you will see the list of all existing capitalisations.
You can also search capitalisations by status and select one of the following statuses:
Inserted,
Processed,
Reversed.
Click the identifier to view the capitalisation details.
Click the Reverse capitalisation button.
Enter a description for the capitalisation reversal > Save.
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