'Amending' is to make any kind of changes to the Loan contract. These changes may include increase in the Loan amount, amend the validity of the loan or to amend any loan details.
The user can select whether interest shall be capitalized, to be charged at the time of amendment or at maturity of the loan.
In case of an amendment of the loan, the following options are available through the checkbox 'Interest Option':
Settle until today - This is the default setting and the only available option in case of a complete repayment. The interest is calculated until the current date (today).
Capitalize interest until today - Only the 'Amount Repaid' is paid back. The already accrued interest are calculated until today and are added to the credit. For this reason, the 'Amount Repaid' of the credit is reduced by the interest accrued until today.
Settle at due date - Interest will only be calculated, if the due date has been reached. If the due date has not been reached yet, only the 'Amount Repaid' will be booked out.
Capitalize interest and fees - Only the 'Amount Repaid' is paid back. The already accrued interest are calculated until today and are added to the credit. Already accrued fees which are stored in the fee pool are also added to the credit. For this reason, the 'Amount Repaid' of the credit is reduced by the interest and fees accrued until today.
Capitalize fees - No interest will be calculated, but the currently settled fees are added to the credit and interest has to be paid from now on.
Repay interest first, then capital - From today on, interest will be charged. The 'Amount Repaid' is the available amount, from which the interest is being paid of. In all other cases, the 'Amount Repaid' is the amount, by which the credit is settled. Interest and costs can be debited additionally, as the case may be.
To amend an existing Loan contract, TRTAME transaction is used.
Select it from the menu item[Financing Products -> Loan -> Main -> Amendment ].
When you have made your changes, click on the ( ) Save function to save all the the data entered in the transaction to the database.