A rollover is the renewal of a loan. Instead of liquidating a loan on maturity, you can roll it over into a new loan. The outstanding principal of the old loan is rolled-over with or without the interest outstanding on it. When a loan is rolled-over (renewed), it is processed in the following manner:

• A new version of the loan with the same contract reference number is initiated.
• A new loan with a different contract reference number is initiated.
• The original loan could be split into multiple loans as a result of the rollover.
• The original loan could be consolidated along with other loans as a result of the rollover

You can rollover a loan that you are processing, provided a rollover is allowed for the product, the loan involves.

For a product with rollover defined, you can specify if loans involving the product should inherit the following:

• The attributes defined for the ICCF components (interest, charges and fees) from the product.
• Those defined for the initial contract. This gains significance, if you changed the attributes that the (initial) contract acquired, from the product. The rolled-over loan acquires the changed attributes.
• For a product with new version of rollover mechanism, you can click Rollover button and save the contract, only if Cont Booking For Addl Amt Only check is selected before the maturity date. After this, the system fires RAMD event. In addition, entries are posted for additional amount which is rolled over.

In addition, you have to specify the following for a product, defined with rollover:

• Whether it is to be rolled-over along with outstanding interest.
• Whether tax has to be applied on the rolled-over loan.
• Whether the principal of the rolled-over interest, should be taxed.

However, when processing a loan, you can change the attributes that the loan acquires from the product. At the time of contract processing, you can indicate if a rollover is to be automatic or manual. In addition, indicate the maturity type (fixed, call, or notice); the maturity date for a fixed maturity loan and the notice days for a loan with notice type of maturity.

You should also indicate the following:

• Whether only the outstanding principal is to be rolled-over.
• Whether the outstanding principal is to be rolled-over with interest.
• Whether a special amount is to be rolled-over. If a part of the principal and interest from the old loan has been liquidated and only the outstanding principal - with or without interest, is rolled-over, it is called a special amount.