1. Bilateral Loans
  2. Disbursing a Loan
  3. Loan Disbursement Details
  4. Enabling Auto Extension

4.2.26 Enabling Auto Extension

Select this check box to define the interim interest schedules for the contract. It ensures that schedules are created in advance to facilitate billing notice generation. Accordingly the system creates the schedules when the schedule date is crossed. It is essential for the schedules to be generated for billing details in future.

Note:

  • This field is enabled only if you select the call type of loans (demand loans). If the auto extension flag is enabled, the number of schedules is defined based on the internal parameter AUTO_EXTENSION_SCHEDULES from CSTBS_PARAM.
  • The frequency is determined based on the product level definition. At the product level, if there is a frequency as bullet for main interest component, then there is no interim interest schedules for the main interest component using AUTO_EXTENSION/AUTO_EXTENSION_SCHEDULES.
  • Auto extension flag is checked or unchecked only at the time of booking demand loans. It cannot be amended as part of CAMD.
  • While defining schedules the number of schedules is specified. However, these contracts are not considered for Auto Extension.

The system creates the schedules based on the internal parameter for number of schedules of demand loan, provided the Auto Extension flag is checked. For instance, if the internal parameter for number of schedules for demand loan is set as 2 with the monthly interim schedule, then it will always have two monthly future interim schedules for the interest component. When a particular schedule date is reached for such demand loan, the system creates additional future schedule.

Parent topic: Loan Disbursement Details