Repayments and servicing

A repayment begins with money received and verified through the agreed source. The servicing workflow allocates that receipt to principal, interest and fee components on the loan’s repayment schedule. The total allocated must stay within the actual receipt. The payment’s status shows whether it has been applied, partially applied or left unapplied for investigation.

Independent Credit Approver inspects the receipt and allocation history to understand the account position. Credit Officer requests only eligible reviewed actions through the agreed route. The schedule identity guard prevents another unreversed allocation to the same installment. This control matters when the same work is triggered again from a page or when a payment event is delivered more than once.

• Receipt verification. Retain the received amount, provider event and verification state with the payment. A payment that has been entered but not verified should remain outside the allocation route until its source is resolved.
• Component allocation. Link the repayment to the intended schedule and retain principal, interest and fee amounts separately. Review allocation and reversal times when reconciling balances, so historical reversed amounts do not inflate the active position.
• Reviewed changes. Preserve the reason, effective date and recorded approver for a reschedule, rate change, write-off or correction. The prior schedule version gives the reviewer context for understanding what changed and which earlier obligations remain in history.

Agree the repayment source and the evidence required to mark an incoming payment verified. Define the component allocation order and confirm that it matches the approved lending terms. Rehearse how the team handles an unapplied remainder, a returned payment and a receipt linked to the wrong loan before opening the process to routine use.

Decide who authorizes each servicing change and how that decision reaches the execution workflow. A correction must retain the original record and its evidence. Establish the handling for a further payment against an installment that already carries an unreversed allocation. The schedule guard must remain effective; the team needs an agreed reviewed path for resolving the case before another allocation is attempted.

Use a verified payment that is smaller than the installment amount due. Inspect the principal, interest and fee components that the workflow allocates. Confirm that the combined allocation does not exceed the receipt and that the remaining account position can be explained from the schedule and active allocations. Review the payment’s status with the servicing owner.

Then request allocation again for the same installment through a different entry point. The existing unreversed allocation should stop a second allocation. Rehearse a reviewed reschedule and compare the effective date, reason and prior schedule version with the historical allocation. Finish with an unverified receipt and confirm that it cannot enter the verified allocation path merely because its amount looks correct.

• Repayment Worklist — Investigate received, partially applied and unapplied receipts with their verification state.
• Allocation History — Trace component amounts to installments and inspect reversal dates.
• Reviewed Loan Changes — Read the reason, recorded approver and prior schedule version for servicing changes.

Rehearse repayment and servicing, and use funding and reconciliation when the opening funded position needs investigation.