When restructuring a Fixed Term Loan, a payment can be less than the normal regular payment. The Account Restructure Wizard allows you to reduce the regular payment, hold the original Maturity Date and alter the interest rate or cycle.
To Calculate new Payments and Extend the Term
If you agree with your Client to re-calculate their payments and extend the term of the account.
- Tick the checkbox "On set date?" and enter the "Final Date", e.g. 10/06/2019
- Alternatively, change the regular instalment to the new amount, e.g. $1,006.72 to $500.00
The effect of the change when changing the On set date?
- The Regular Instalment has decreased.
- The Maturity Date has been extended.
Example Two
The following scenario looks at altering an account's interest rate and altering the day that interest is charged.
To alter Interest Changes and the Interest Cycle
If you agree with your Client to alter their interest rate and change the day that interest is changed.
- Change the Interest Rate from 20.00% to 15.00%.
- Change the Interest cycle from End of Month to Monthly.
If applicable, you can also adjust the regular payment amount or extend the maturity date by ticking the "On set date?" and entering a Final Date.
The effect of the change
- The Interest rate has decreased.
- The Interest cycle has been updated to Monthly.