Introduction

Technically, Restructuring of an existing loan is provision of the Borrower with a new loan that fully covers outstanding balance on an existing active or past due loan.

When the Loan Can Be Restructured

Restructuring is used when it is necessary to change the loan terms to make it easier to pay back and help the Borrower to avoid defaulting on current debts by negotiating reduced interest rates.

Loan cannot be restructured if there have been made payments for future installments or if a promise to pay with a date in the future has been registered in the system.

Who Can Restructure

Restructuring can be performed by Back-Office users on the Servicing and Collection workplaces. Only the user to whom the loan is assigned can perform the Restructuring.

Restructuring Steps in the UI

In order to initiate the Restructuring of an active loan, go to the Servicing workplace.

In order to initiate the Restructuring of a past-due loan, go to the Collection workplace.

Open the loan (make sure it is assigned to you). In the “Payments” tab, click the “Restructure” button.

At the top of the emerged window, you will see the current payment and total amount of the debt to be restructured.

Below information about the existing loan, you are basically defining parameters of the new loan.

Comment: Comment on the reason for restructuring

Credit product: Select the type of new loan

Loan amount: Define amount of the new loan. It can exceed the debt.

Term: Define the term of the new loan

Vendor and Store: If the debt shall be paid to a retailer, define their details.

Once you’ve defined the details, approximate payment for the repayment period will be defined, along with other details of the new loan.

If suggested schedule suits the customer, click “OK” and confirm the loan restructuring in the emerged pop-up.