Locking and Unlocking Penalties
When a loan in Open state misses installments, its state is changed to Arrears. In arrears, depending on product configurations, penalties may be added automatically to a loan at specific intervals. You might want to limit penalties added to a particular loan, or on loan creation, you might want to restrict the system from adding penalties to a specific loan in case of default.
To lock penalties go onto Loans>View Loans. On View Loans filter based on your preferences and click the Loan_Number to view the profile of the loan. Go onto Penalties tab.
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Penalties tab for a loan that is not in Arrears state.
For a loan that is not in arrears, you can only lock account to prevent it from adding penalties when the loan misses installments and goes into arrears. If the loan product is not configured to add penalties then there is no need to lock account. -
Penalties tab for a loan that is in Arrears state.
If a loan is in arrears and penalties are being added by the system, you can stop additional penalties by clicking on "Lock Account." If the system has added more penalties than expected or you want to give a discount on penalties, you can change the penalty balance by clicking on "Change Balance" and entering the new penalty amount. To add more penalties manually, click on the "Add Penalty" button and add the penalty.
Penalties added by the system must be configured on the loan product first, before the loan is created. Manual penalties can only be added to loans that are in arrears.