Initiate Loan Reschedule
Overview
Modify loan payment schedules to adjust payment amounts, extend repayment periods, or accommodate borrower financial difficulties while maintaining the loan relationship.
What It Does
This feature enables institutions to restructure troubled loans by adjusting payment schedules, extending terms, adding grace periods, or capitalizing arrearages to help borrowers remain current.
Business Value
Reduces loan losses by working with borrowers experiencing temporary difficulties, maintaining loan performance and customer relationships while managing credit risk.
Who Uses This Feature
Collections officers, loan workout specialists, and relationship managers use this feature to restructure problem loans.
Key Capabilities
- Extend loan maturity dates
- Reduce payment amounts temporarily
- Add grace periods before payment resumption
- Capitalize past-due amounts into principal
- Generate new amortization schedules
How to Use
Evaluate borrower hardship request, determine appropriate restructuring terms, document hardship justification, obtain required approvals, and implement new payment schedule.
Common Use Cases
Temporary job loss or income reduction, medical emergencies affecting payment ability, business revenue decline, or seasonal income fluctuations.
Important Considerations
Loan rescheduling may trigger troubled debt restructuring classification. Complete hardship documentation required and multiple reschedules may indicate deeper problems.
Integration with Other Processes
Integrates with collections, loan servicing, credit classification, and regulatory reporting systems.
Related Features
Related to loan modification, forbearance programs, and collections management features.