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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.