Entering a Reduction

Use

You use this function to execute a reduction for loans in the category Consumer Loans (340). You use this function if the loan contract has been created, meaning the loan has status Contract, and the borrower wants to waive a part of the loan amount.

If the loan contract has not yet come into being, meaning the loan still has status Application or Contract Offer, you carry out a new model calculation for the loan with the corresponding smaller net loan amount and use this as the basis for the contract.

Prerequisites

You need to have completed the following IMG activities in the Customizing settings for Loans Management :

  • Under Define Condition Types you must define at least one condition type for capital reduction and assign it the calculation category KAMI.

  • In the IMG activity Define Condition Groups you must assign this condition type to the condition group that is assigned to the corresponding product type.

Procedure

  1. In the function Change Consumer Loan choose Start of the navigation path Edit Next navigation step Enter Reduction End of the navigation path .

    The Contract Withdrawal or Reduction: Basic Data for Reduction screen appears.

  2. Enter the date for the reduction and the reduction amount.

  3. Save your entries .

Result

You have executed a capital reduction. The disbursement obligation has been reduced. The original contract capital has not changed however.