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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 to loan modification, forbearance programs, and collections management features.