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.