How to Apply a Payment Holiday from the Back-Office

Owned by TurnKey Lender
May 19, 2022
3 min read

Introduction

If for some reason the borrower is not capable of performing a loan payment on the Due Date, they can address the Back-Office employees with a request for a Payment Holiday. This allows the borrower to postpone the payment without pas due fees.

The Back-Office employee shall discuss the matter with the customer, and, if this is reasonable and in line with the company policies, apply the payment holiday. The payment holiday can be applied to a loan that has been disbursed if the option is enabled for the product.

Apply the Payment Holiday

In order to apply a payment holiday, open the Servicing loan details, and go to the Payments tab. Click the “Payment holiday” button

In the emerged window, you will see the current Due Date (field on the left that cannot be edited) and new Due Date (“Nearest repayment date” field on the right).

Click the calendar icon and select the new Due Date.

Select the new date. Leave the comments and click the “OK” button.

Payment holiday requests applied by a Back-Office user are automatically accepted, unless they contradict any of the payment holiday rules defined for the loan.

Accrue Interest During the Payment Holiday

A simple switcher allows to enable/disable accrual of the plain interest during the payment holiday period.

Apply Additional Fee During the Payment Holiday

There is also a possibility to apply additional fee during the payment holiday. If it is enabled for the credit product (loan type), the user will see the list of available fees.

Payment fees displayed in the system are pre-created for the credit product.

View Payment Holidays

Once a loan has been applied/approved, it is visible in the “Rescheduling” tab.

Why Payment Holidays Can Be Automatically Rejected

Payment holiday request will not be applied and a corresponding error message will appear if the request contradicts one of the rules defined for the loan, namely:

  • If there is too little time left before the payment

  • If the requested payment holidays are too long

  • If payment holidays have been requested for this loan for too many times.

All the rules are defined in the corresponding Product Settings.