A customer with a Personal Loan product is able to make partial early repayments (called, pre-payments) anytime during the loan product life cycle. These partial early repayments (prepayments) help the customer manage his debts, by offering 3 options:
Simple prepayment, covering the future instalment/s - OPTION 1
This applies to customers who have in present a high amount of money, and they would like to use them to cover the payments in the future (getting in this way month/s without any repayment), as well as not changing the amount of the future instalments.
Early instant repayment with change of future instalments - OPTION 2
This option is applicable to customers who have in present a high amount of money, and would like to use them to cover the loan balance, immediately. This option will lead to a lower interest/cost for the client (as it is calculated to a lower principal balance) as well as to a lower monthly payment (as the loan term will remain unchanged).
Early instant repayment with change of loan term - OPTION 3
This option is applicable to customers who have in present a high amount of money, and would like to use them to cover the loan balance, immediately. This option will lead to a lower interest/cost for the client (as it is calculated to a lower principal balance) as well as to a changed loan term (as the monthly instalment will remain unchanged) .
In case of overdue loans accounts, the client will first cover the overdue debts and the remaining will be used for prepayments.
Proposal would be for clients not to be allowed to access the pre-payments screens, in the case the loan account is marked as delinquent-overdue.