Refunding the Excess Amount

7.3.1.1 Refunding the Excess Amount

You can refund the excess amount paid at any time. You can also refund the interest / fee amount paid, even though there is no overpayment done. The overpaid amount can be refunded through the ‘ Refund Online’ screen.

Specify the User ID and Password, and login to Homepage.

On the homepage, type OLDREFND and click next arrow.
The Refund Online screen is displayed.

Note:
The fields which are marked in asterisk red are mandatory fields.

Figure 7-2 Refund Online

Description of "Figure 7-2 Refund Online"

You can specify below details in this screen. For information on fields, refer to the field description table.

Table 7-1 Refund Online

Field	Description
Contract Ref No	Select the contract reference number of the loan contract for which the overpaid interest/fee amount has to be refunded. The following details of the payment get displayed: Value date Schedule Due date Amount due Amount paid Refund Amount
Refund Amount	Specify the amount that has to be refunded. This amount cannot be greater than the amount paid. Note: The entries posted as part of RFND event is for the amount entered in the Refund Amount option.
Refund	Select this check box to unlock the screen and select Refund Amount and save it for processing the refund.
Remarks	Enter remarks about the amount refund if any.

Refunding of Interest and Fee can be done through the same screen and at the same instance.

The following restrictions are applicable for overpayment and refund of interest/fees:

Overpayment of fee is not applicable for User Input type of fee.
Payment reversal after refund is not allowed.
During Loan Reprice, if the Transfer main interest is selected then the excess amount paid is adjusted against the interest calculated for the period between last schedule date and the reprice date. The residual interest due amount is transferred to the reprice child contract and if the same is residual interest amount is +ve, then it is treated as acquired interest else as overpayment and gets settled on first schedule of the component of child contract. Transfer of Interest is not allowed for back valued reprice.
Refund of transferred interest (Transferred interest includes excess amount paid as well) is not allowed.
For Discounted and True Discounted loans, in case of any full or partial pre-payment is made, the system shows total interest amount paid instead of overpaid interest amount. You have to manually calculate the amount to refund. However, the system refunds the interest paid to the customer account.

Parent topic: Processing Overpayment and Refund of Interest/Fees