Many types of loans, such as payday loans, get renewed on a regular basis. To help renew loans quickly and easily, LoanPro Software has a renewal process. This process steps you through the different options you can set when renewing a loan so that you do not have to create a brand new loan, allowing you to keep all of the history for the account.
To start the renewal process, open up the target loan and navigate to Account Setup > Processes and click Loan Renewal. The following page will appear.
Enter the renewal loan amount (new loan amount) in the New Amount field. Below this field you will see a Calculated Amount and an Adjustment Type. The system will calculate any adjusting transaction necessary to update the loan amount to the amount you entered as the new amount. Click the amount to auto fill the Amount field for either an advancement or credit, whichever is appropriate. Choose a category for the advancement or credit. In the case of a credit, you can also choose the application and whether to reset the amount & days past due when the credit is logged. Since you are renewing the loan, this is done by default. The application will usually be Principal since the point of adding a credit is to adjust the principal balance. Click .
Here, select the Days Past Due/Amount Past Due options for the account.
Enter a date on which the days past due on the account will be reset to 0. This will likely be the same as the renewal date.
Enter a date on which the amount past due on the loan will be adjusted to either $0.00 or a fixed dollar amount. This will most likely be the same as the renewal date on the loan. Choose whether the account will be adjusted to a zero balance or to a fixed dollar amount past due from the Type Of Adjustment drop-down. If you chose Fixed Dollar Amount from the Type Of Adjustment drop-down, enter the amount in the Amount field. Click.
Here, you can change the next due date on the loan.
If you want to change the scheduled payment date to a different date, select the payment date you wish to change from the "Due Date to Change" drop-down. To choose the new due date for the payment, click New Due Date. Choose a new date to set as the new payment date. If you want to charge the borrower a fee to change the due date, choose Yes from the Charge Fee drop-down. Click to save the change of due date. Once done, click Yes to confirm.
Finally, you have the options to perform a roll schedule.
You have the option to enter a simple payment schedule or a full payment schedule. If you want to roll the payment schedule, enter the term, the rate, and the amount for the new payment schedule.
Once you are done, clickto save your changes to the loan.