Loan Screens > Account Information Screen Group > Payment Information Screen > Payment Information Screen (version 7.9.3) > Loan Information tab

Occasionally a customer is set up with a loan frequency when a loan is initially opened but then wants to change the frequency to something else. The Loan Information tab on the Payment Information screen allows you to change the loan frequency.

When you change the frequency of a loan, you must first click <Recalculate PI Constant> before you can save changes. The principal and interest payment will change based on the payment frequency you select from the Frequency field.

Example:

A customer has a P/I payment of $200.00, with a loan frequency of "1 - Monthly Payment." The customer wants to change the frequency to bi-weekly payments that are more in accordance with the customer's paycheck. When you select "26 - Bi-Weekly Payment" from the Frequency field, and then click , the P/I Constant is recalculated at the bi-weekly payment of $100.00 for each bi-weekly payment.

When recalculating the principal and interest payment based on a new payment frequency, the system takes into account the number of days interest and the number of days in the payment period, as well as the remaining balance on the loan (Principal Balance) and the number of payments remaining until the loan reaches maturity.

Additionally, the Due Date will be affected accordingly when changing the loan frequency, as will the Total Due and Monthly Payment fields on the Loans > Transactions > EZPay screen.

The Current Installment Number field will either decrease or increase according to the frequency that was selected. For example, if the Current Installment Number is 100 for monthly payments, and the Frequency is changed to weekly, the Current Installment Number is increased to 400.

The Last Day checkbox is also important if using the Floating payment frequency (13).

Also, the Remaining Payments til Maturity on the Loans > Transactions > CP2 screen > Payment Schedule tab will also change based on the Frequency you select. For example, if a loan has 5 payments left and you change the Frequency from monthly to weekly, the Remaining Payments til Maturity will increase to 20.

For more detailed information concerning each payment frequency, see the Frequency field description on the Loan Information field group.

Note: Not all institutions allow users to change the frequency on loan accounts. The Frequency field has field-level security and you may need special security clearance to make changes. Additionally, you can limit which frequencies appear in the Frequency field. See the Loans > System Setup Screens > Client Code Setup > Loan Frequencies screen. The frequencies set up on that screen are displayed in this field. Frequencies are generally indicated at loan origination but can be changed using this field, if your institution allows it.

	WARNING: If recurring payments are set up when loan frequencies are changed, you will need to discontinue the recurring payment, and then restart it using the new frequency. See the ACH Payments tab for more information.

Changing the Loan Frequency

Changing the Loan Frequency