Loan Prepayment
Early settlement of loans with interest rebate and penalty calculation.
Product Configuration
On the Loan Product edit screen, configure:
- Allow Prepayment: Enable/disable
- Rebate Method: Rule of 78s / Actuarial / Pro‑rata / None
- Prepayment Penalty Type: Flat Fee / % of Outstanding / % of Unearned Interest
- Prepayment Penalty Rate: Percentage or flat amount
- Prepayment Lock Period: Months before prepayment is allowed
- Penalty Tiers: Optional time-based penalty brackets
Prepaying a Loan
- Navigate to Accounts → Loans
- Click the three-dot menu on a loan → Prepay Loan
- Review the quote: outstanding principal, interest, rebate, penalty, net due
- Optionally enter a partial amount
- Click Confirm Prepayment
- A settlement letter PDF can be downloaded after execution
Viewing Prepayment History
Prepayment records are stored in LoanPrepayments table and viewable from the loan detail.
Reversing a Prepayment
From the loan dropdown → Reverse Prepay (if the latest prepayment has not been canceled).