Holidays, Installments on Non Working Days
When creating loan products, you can configure reschedule installments that are due on non-working days. For more information about setting up non-working days, see Non-working days creation under Manage branches.
When creating a new loan, the first repayment date or first installment must be a working day. If the date is a non-working day or a holiday, the system will reject creating the loan.
Installments on Non Working Days
The first payment date or installment cannot be scheduled on a non-working day or holiday. However, subsequent installment dates may fall on non-working days or holidays. To prevent this, configure the Non Working Days Rescheduling setting.
If an installment due date falls on a non-working day, the payment can be rescheduled to a working day. This configuration is under Tenure settings on the loan product creation page. There are three options for rescheduling installments.
Move ahead to next working day
The system will automatically edit the loan schedule so that all installment due dates that fall on holidays or non-working days will be moved to the next working day.
Move backwrds to previous working day
The system will automatically edit the loan schedule so that all installment due dates that fall on holidays or non-working days will be moved to the previous working day.
Extend Schedule
The system will automatically edit the loan schedule so that the installment due on holidays or non-working days and all further installments will be moved by one installment period.