A customer choses to make a pre-payment on his instalments, in amount of 1000 on 20-07-2022.
This amount will the be allocated to it’s future payments and marked as pre-paid.
The 01October instalment will be partially pre-paid and will
instalment | interest | principal | EMI | remaining capital | |
1 | 1-2-2022 | 84.93 | 376.52 | 461.45 | 9623.48 |
2 | 1-3-2022 | 73.82 | 387.63 | 461.45 | 9235.86 |
3 | 1-4-2022 | 78.44 | 383.01 | 461.45 | 8852.85 |
4 | 1-5-2022 | 72.76 | 388.69 | 461.45 | 8464.16 |
5 | 1-6-2022 | 71.89 | 389.56 | 461.45 | 8074.60 |
6 | 1-7-2022 | 66.37 | 395.08 | 461.45 | 7679.52 |
Prepayment | 20-07-2022 | 1000 | |||
7 | 1-8-2022 | 65.22 | 396.23 | 461.45 | 7283.29 |
Prepaid amount remaining | 538.55 | ||||
8 | 1-9-2022 | 61.86 | 399.59 | 461.45 | 6883.70 |
Prepaid amount remaining | 77.10 | ||||
9 | 1-10-2022 | 56.58 prepaid | 20.52 prepaid +384.35 to be paid | 384.35 (expected) | 6478.83 |
10 | 1-11-2022 | 55.03 | 406.42 | 461.45 | 6072.41 |
11 | 1-12-2022 | 49.91 | 411.54 | 461.45 | 5660.87 |
… | |||||
…. | |||||
22 | 1-11-2023 | 11.54 | 449.91 | 461.45 | 908.91 |
23 | 1-12-2023 | 7.47 | 453.98 | 461.45 | 454.93 |
24 | 1-1-2024 | 3.86 | 454.93 | 458.80 | 0.00 |
Let’s assume the customer would prefer to make after the second instalment, an immediate partial repayment. That means that the partial repayment will be immediately recognized and applied:
the interest accrued to the date will be posted an collected
the remaining will be covering the loan balance
based on the option selected by client, for example to lower the EMI, the repayment plan will be changed.
the amount available on the pre-payment account, will then be kept for covering the future EMI payments values.
Example:
instalment | interest | principal | EMI | remaining capital | |
1 | 1-2-2022 | 84.93 | 376.52 | 461.45 | 9623.48 |
2 | 1-3-2022 | 73.82 | 387.63 | 461.45 | 9235.86 |
3 | 1-4-2022 | 78.44 | 383.01 | 461.45 | 8852.85 |
4 | 1-5-2022 | 72.76 | 388.69 | 461.45 | 8464.16 |
5 | 1-6-2022 | 71.89 | 389.56 | 461.45 | 8074.60 |
6 | 1-7-2022 | 66.37 | 395.08 | 461.45 | 7679.52 |
prepayment | 20-7-2022 | 1000 | |||
7 | 1-8-2022 | 65.22 | 396.23 | 461.45 | 7283.29 |
Prepayment amount remaining | 538.55 | ||||
option2 partial repayment | 17-8-2022 | 31.93 | 968.07 | 1000 | 6315.22 |
Prepayment amount remaining | 538.55 | ||||
8 | 1-9-2022 | 61.86 | 338.10 | 399.96 | 5977.12 |
Prepayment amount remaining | 138.59 | ||||
9 | 1-10-2022 | 49.13 prepaid | 89.46-prepaid 261.37-to be paid 350.83 | 261.37 to be paid | 5626.28 |
10 | 1-11-2022 | 47.78 | 352.18 | 399.96 | 5274.11 |
11 | 1-12-2022 | 43.35 | 356.61 | 399.96 | 4917.49 |
12 | 1-1-2023 | 41.77 | 358.20 | 399.96 | 4559.30 |
….. | |||||
24 | 1-1-2024 | 3.45 | 406.39 | 409.85 | 0.00 |