Navigation:  Teller System > Transactions > Loan Transactions > Loan Transaction Codes > Tran Code 2510-01, Waive Interest Transaction

The Waive Interest Transaction (tran code 2510-01) is used for severely delinquent accounts and you have been authorized to waive any outstanding accrued interest on the account. This transaction should only be used with a supervisor’s approval. It can be used if a bankruptcy decision requires interest to be waived, or if your institution has negotiated with the borrower to reduce the accrued interest amount. This transaction is only used for daily simple interest loans (payment method 6).

 

 

You can waive any portion of accrued interest or the whole amount using this transaction. The amount of accrued interest the account currently has is shown in the Accrued Interest field (LNACIN) on the Loans > Account Information > Account Detail screen. An easier option, however, is to first run the Waive Interest Inquiry (tran code 2180) with the account number data. The Waive Interest Inquiry (tran code 2180) shows the amount of accrued interest owing from the Date Interest Paid To to today. After that transaction has processed, the Waive Interest transaction (tran code 2510-01) will appear. The Waive Interest Inquiry will show you the total amount of accrued interest owing on the account, as shown below:

 

 

Future Interest

 

It is possible to waive future interest using this transaction. Set the dollar amount of future interest you want to waive in the Waive Future Int? field. And if you want the future interest to calculate at a different rate than the current rate, enter the effective rate in the Effective Rate field. In the Tran Amount field, type the amount of interest that you are waiving.