Introduction to Loan Redraw

Bank offers a redraw facility to provide its customers the flexibility to make additional repayments, while still having access to the additional funds above the scheduled repayment amount when necessary. Banks, in return, charge their customers in exchange for the redraw service provided. Generally, borrowers pay less interest over the life of the loan as the overpayment made to the loans is used to offset the interest charged on the outstanding balance.

The benefits of this functionality are:

• Flexibility to redraw money from the advance position without impacting the repayment schedule of the contract.
• Ability to limit the maximum redraw per day.
• Ability to view the overall redraw information for the customer.

Generic API's

This functionality allows banks to manage the list of balances for the loan redraws.

The LNRDRW.API.GET.LOANREDRAW.BALANCES.1.0.0 enquiry has been released as part of this functionality to allow users to retrieve details of the loan redraw balances like currency, advance position, available amount, etc.

The LNRDRW.API.GET.LOANREDRAW.BALANCES.2.0.0 enquiry, provided with an API, is used to retrieve loan redraw balances like currency, advance position, available amount, and so on.

New fields have been added to the LNRDRW.REDRAW.BALANCE.DETAILS enquiry.