Understand Loan Penalty Actions

Understand Loan Penalty Actions

Penalty Actions are actions based on the current. The penalty actions vary from creating a penalty to changing settings on the penalty, to even reversing the penalty.

1. How to add a penalty charge?

      i) Under the loan schedule(This where you find the scheduled payment  of the current loan), there is a list of loan                            repayments scheduled. on the far right there is a add penalty charge button


      ii)  Click on the button to add the penalty charge.


      iii) The user will receive a prompt to add the penalty properties like date and amount and reason for the penalty charge.


      iv) Once everything is confirmed you can charge the penalty to the loan.



2. How to reverse a penalty charge?

      i) Reverse a penalty charge a user will go to the charged penalties tab. Here is a list of all charged penalties on the current.

      ii) Click the reverse button provided on the tab. Once you click the button you will receive a prompt to reverse the penalty            charged on the loan. Input the amount to reverse from the penalty on the input.


      iii) Click on  the "REVERSE VALUE" button that will reverse the penalty.


      iv) Penalty amount on the loan will be reversed.


3. Penalty Approaches?

Here are a few penalty approaches that will allow the user to recalculate the loan with the penalties included.


1. Current Installment Balance - Penalty Settings
This will update the penalty calculation approach and penalties may be calculated based on an installment balance or total loan balance and penalties may be calculated based on an installment balance or total loan balance.


2. Total Loan Balance - Penalty Settings
This will update the penalty calculation approach and penalties may be calculated based on an installment balance or total loan balance and penalties may be calculated based on an installment balance or total loan balance.



3. Reload Settings - Penalty Settings
This will change the penalty dates based on current settings and this will change the penalty dates based on current settings.



4. How to suspend a penalty?

Suspending a penalty involves disabling a penalty charge on the current loan.  This happens on loans that are still in progress. They have not been fully paid.

Once clicked the button will prompt the system to give a pop up to confirm the suspension of the penalty.




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