This module will not be further enhanced. Support is limited to defect fixing only.

Introduction to Lending

This module provides the ability to restructure or reschedule the principal and interest of a loan in multiple ways. Once it is retructured or rescheduled, the loan is monitored for a period defined by the central bank of Sri Lanka. If the number of repayments are not met during this monitoring period, the loan is moved to the non-performing category and vice versa as per the guidelines.

Click here to understand the terms and abbreviations used in this module.

A customer could request a payment holiday for principal, interest, or both for their credit facilities, like loans. Depending on the status of the underlying facility as performing or non-performing, such a request can undergo either a restructure or reschedule.

Banks could perform a restructure or reschedule to a customer’s credit facility. Below are some of the methods and there could be other ways of restructuring or rescheduling a loan like amendment of repayment schedule, etc.

• Granting a payment holiday for future repayments
• Granting a payment holiday for overdue repayments
• Capitalization of interest to a new loan
• Capitalization of interest to the same loan
• Accrual of interest to maturity

A performing facility can be restructured, while a non-performing facility can be rescheduled. Further, a restructure or a rescheduled facility goes through a monitoring period wherein the repayments are tracked.

After a credit facility is granted to a customer, they may request to amend the original repayment terms of facilities due to the business cash flow issues, project completion delays, and adverse changes in macroeconomic conditions, etc. In such situations, the bank may consider the granting concessions to clients by amending the facility repayment terms by the way of an extension to tenure, interim capital grace period, structured repayments, capitalizations, etc.

When effecting the amendments to repayment terms as above, it can be done to the same contract or by creating a new contract.

The core functionality allows a facility to be marked for the payment holiday.

The Lending module allows banks to:

• Track the count of times a facility has undergone restructure or reschedule.
• Impose a monitoring period for a restructure or rescheduled facility.