Configuring Payment Holiday

Flexible repayment allows modifications to the scheduled payments either by skipping or modifying payment amount. This is achieved by using Payment Holiday transaction class. There are no product conditions required and each time the conditions have to be captured afresh by the user.

Flexible repayments instructions are captured using LENDING-UPDATE-PAYMENT.HOLIDAY. Subsequent changes to flexible repayment are done through LENDING-CHANGE-PAYMENT.HOLIDAY.

ClosedDefinition

The user can define flexible repayment by payment type or bill type.

EXAMPLE:
  • The user can choose to skip charge related payments for a span of three months.
  • The user can skip all the payment type of bills for a span of two months.
ClosedCancellation

It allows the user to cancel the skipped schedules. However, cancellation should be consecutive and it cannot be on an ad-hoc basis.

ClosedRestrictions

If some payment type or bills types have to be restricted, it can be defined in the payment schedule conditions using holiday restrict type fields.

EXAMPLE:

If the Charge property class is selected for restriction, then flexible repayment is not allowed for any of the scheduled charges.

ClosedRepayment limit

Flexible repayment definition can be subject to a limit. This can be configured using the periodic attribute classes. Periodic attribute classes such as HOLIDAY.LIMIT.REVOLVING and HOLIDAY.LIMIT are used for defining the limit in the payment schedule condition using periodic set of fields.

The user can give the periodic value at the arrangement level which is considered as the maximum limit for the flexible repayment.


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