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Payment Holiday

The Payment Holiday is a transaction (soft) Property Class used to skip an installment completely or skip part of the installment amount for a defined period.

Product Lines

The following Product Lines use the Payment Holiday Property Class:

Asset Finance
Deposits
Lending

Property Class type

There is no associated Property Class Type with this Property Class.

Property Type

There is no associated Property Type with this Property Class.

Balance Prefix and Suffix

There is no associated Balance Prefix and Suffix with this Property Class.

Attributes

Banks offer Payment Holiday feature, by which, a customer may opt to take an instalment break to skip repayments. The system stops generating bills during the holiday period.

Flexible Repayment Definition

The following table describes the attributes related to Flexible Repayment Definition.

Attribute	Description
Holiday Start Date	Denotes the date from when the payment holiday is to be processed. The activity effective date is considered when left blank. This works along with Hol Num Payments.
Hol Num Payments	Denotes the number of scheduled payments to be skipped from the holiday start date. This is a mandatory field when Holiday Start Date is given.
Hol Payment Type	Specifies the type of payment for which the holiday processing should be considered. This must be a valid input from AA.PAYMENT.TYPE. This can be input only when the Hol Start Date and the Hol Num Payments are defined. Else, this field does not allow any input.
Holiday Date	Specifies the holiday dates for the payments. This is a no – input field which the system defaults.
Repay Type	Indicates the type of repayment option required. The options are: Blank – Indicates that the accrued interest during the payment holiday has to be collected immediately at the end of the holiday or grace period. This option represents the default system functionality. When the accrued interest is more than installment amount agreed for the month, the system collects the monthly installment, and it prioritises the remaining accrual for the next month’s installment. Only after collecting the accrued interest pending, the system builds the normal schedules to include the principal and interest. Deferred – Indicates the accrued interest pertaining to the ‘Holiday’ property needs to be deferred. This attribute is available only for Lending product line.
Repay Period	Indicates the number of billing cycles over which the accrued holiday period interest needs to be invoiced after the holiday (grace period) ends. When this field is left blank, then the system by default bills the accrued holiday interest over the entire residual schedule until maturity. When the user specifies the number of billing cycles, the system evaluates if it does not exceed maturity of loan. This attribute is available only for Lending product line.
Refer Settlement Type	The system can be configured to use the settlement instructions of any existing payment type for which the holiday is triggered (provided there are settlement instructions given for that payment type). This attribute is available only for Lending product line.

Cancellation of Flexible Repayment Plan

The following are the attributes used to cancel a flexible repayment plan.

Attribute	Description
Cancel	Allows the user to cancel a flexible repayment that is already defined. Cancellations are allowed only on consecutive future holidays. This attribute is available only for Change Payment Holiday activity class (LENDING-CHANGE-PAYMENT.HOLIDAY).

Restriction in Flexible Repayment

The user can set a restriction type for flexible payment at the product and arrangement levels.The following are the attributes used in the restriction of flexible repayment.

Attribute	Description
Hol Restrict Type	Specifies the type of holiday restriction that can be applied to the product/arrangement. The options are : Property.Class – Used when the restriction for Payment Holiday should be applied at the Property Class level. For example, the Interest Property Class can be restricted from having a payment holiday. Property - Used when the restriction for Payment Holiday should be applied at the Property level. For example, PRINCIPALINT property can be restricted from having a payment holiday. Bill Type - Used when the restriction for Payment Holiday should be applied at the Bill Type level. For example, INSTALLMENT Bill Type can be restricted from having a payment holiday. Payment Type – Used when the restriction for Payment Holiday should be applied at the Payment Type level. For example, INTEREST.ONLY Payment Type can be restricted from having a payment holiday.
Hol Restrict Item	Allows the user to choose the processing of restriction on payment holiday based on either property class, property, bill type or payment type.

Attribute

Description

Hol Restrict Type

Specifies the type of holiday restriction that can be applied to the product/arrangement.

The options are :

Property.Class – Used when the restriction for Payment Holiday should be applied at the Property Class level. For example, the Interest Property Class can be restricted from having a payment holiday.
Property - Used when the restriction for Payment Holiday should be applied at the Property level. For example, PRINCIPALINT property can be restricted from having a payment holiday.
Bill Type - Used when the restriction for Payment Holiday should be applied at the Bill Type level. For example, INSTALLMENT Bill Type can be restricted from having a payment holiday.
Payment Type – Used when the restriction for Payment Holiday should be applied at the Payment Type level. For example, INTEREST.ONLY Payment Type can be restricted from having a payment holiday.

Hol Restrict Item

Allows the user to choose the processing of restriction on payment holiday based on either property class, property, bill type or payment type.

During Update Payment Holiday Activity, the Bill Type and Payment Type in the Activity are cross-validated against these attributes before proceeding with updating holiday information.

Modification of Payment Amount

The following are the attributes used to modify the payment amount.

Attribute	Description
Original Pay Amount	Defaults the original payment amount that was calculated for a given payment date while declaring a holiday, and also defaults the actual amount given by the user. This is a no input field.
Holiday Pay Amount	Allows the user to modify the payment amount of the bill by increasing or decreasing it but has to satisfy the minimum payment restriction.

Refer Payment Holiday user guide for more information on usage.

Periodic Attribute Classes

The Periodic Attributes that involve Payment Holiday Property Class are:

HOLIDAY.LIMIT
HOLIDAY.LIMIT.REVOLVING
HOLIDAY.COUNT
HOLIDAY.RESTRICT

The HOLIDAY.LIMIT and HOLIDAY.LIMIT.REVOLVING periodic attributes are used to control the maximum amount and maximum percentage allowed as payment holiday.

The HOLIDAY.COUNT periodic attribute controls the number of times a payment holiday can be defined in an arrangement within specific period.

The HOLIDAY.RESTRICT periodic attribute controls restriction of parallel payment holidays when Repay Type is not set.

All these periodic attributes are configured in Payment Schedule product condition and are available only for Lending product line.

Actions

The Payment Holiday Property Class supports the following actions:

Action Name	Description
UPDATE	Updates the PAYMENT.HOLIDAY table to re-calculate the repayment schedule.

Accounting Events

This Property Class does not generate any accounting events.

Limits Interaction

This Property does not perform any actions that impact the limits system.

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