7.9.7 Redefining Schedules
Repayments that are scheduled for a date later/previous than today can be redefined. Redefinition can be done for unpaid schedules (component wise). For the component, redefinition can be done from last payment/paid date. During CAMD/VAMI Schedule redefinition partial and fully paid schedules (component-wise) moves to liquidated schedule summary. This redefinition can be done even after the loan has come into effect and a few schedules have been liquidated.
However, schedules with a date earlier than today’s date that are yet to be liquidated cannot be rescheduled. You have to liquidate them through the Manual Liquidation function. Aging analysis and penalty processing are done on such overdue schedules.
- For loans with fixed interest, commission or fee rates, the schedule amounts for these components are automatically changed when there is a change in the rate.
- For a loan with amortized schedules, the schedule amounts are recalculated when there is a change in the main interest rate.
- When the Maturity Date is changed - a change in the Maturity Date is handled in
the following manner:
- Extension of the Maturity Date: The principal repayment schedule that was defined for the earlier Maturity Date is moved to the new Maturity Date. Other components (interest, commission, or fee) that are dependent on the tenor of the loan are recalculated and spread equally over the rest of the repayment schedules for these components.
- Advancement of the Maturity Date: All the schedules that are beyond the new Maturity Date are advanced to the new Maturity Date. The amount of other components (interest, commission, or fee) that are dependent on the tenor of the loan is recalculated and spread equally over the rest of the repayment schedules for these components.
- When the Principal is increased: the increased amount is added on to the last principal schedule. Other components (interest, commission or fee) that are dependent on the principal of the loan are recalculated and spread equally over the rest of the repayment schedules.
- When there is a prepayment of interest and you have defined recalculation of schedules on repayment.
There may be some situations wherein you would want to redefine the schedules, that is, you may want to change the payment dates or amounts. In such cases, you can change the schedules by invoking the Contract Input screen and clicking the Schedules tab. If you click the redefinition button on the schedules screen, all the schedules with today’s date or a date in the future is erased and you are allowed to enter a new set of schedules.
To redefine a schedule for only one component, highlight the schedule make the changes and click the Add Row button. If the schedules have already been authorized then you have to make the changes through the Modify function.
After making the changes, you can save the redefined schedules by clicking Add Row. To delete a schedule (before authorization) click the Delete Row button.
Parent topic: Revision and Repayment Schedules