Navigation:  Loans > Loan Screens > Account Information Screen Group > Account Detail Screen > Account tab > Payment and Classification field group > Payment Method 0: Conventional Loans > Payment Amounts Less Than Next Payment Due

A full payment amount (according to the Next Payment Due field) is required if running a regular payment transaction for a conventional (payment method 0) loan through the EZPay or Make Loan Payment screen or one of the payment transactions in GOLDTeller. If a teller attempts to run a payment transaction (tran code 600) for an amount less than the Next Payment Due, the following error message will be displayed:

 

AMT TOO LOW—PMT IS NNN.NN

 

Where NNN.NN is the Next Payment Due amount.

 

The system allows payments for less than the Next Payment Due, but a special transaction must be run to allow it. This is because of the way conventional loans calculate interest due. Interest is calculated after a full payment is made, as explained in further detail in the P/I Constant and Interest Calculation help topic. Therefore, any amount less than the Next Payment Due must go into the Partial Payments field, where afterhours functions and institution options designate what happens to the amount.

 

In cases where a borrower wants to make a payment for less than the Next Payment Due amount, the teller must run a Partial Payment Increase transaction (tran code 510-33) for the amount of the payment, as shown below:

 

 

After this transaction is processed, the system will credit the amount of the transaction to the Partial Payments field on the Loans > Account Information > Account Detail screen, as shown below:

 

 

The Interest Due, Date Last Accrued, Date Interest Paid To, and Due Date fields are not affected by a partial payment. Once the Partial Payments field contains a full payment amount, the system will apply that amount as a full payment in the afterhours, debit the Partial Payments field, and advance the Due Date ahead one month.

 

See Partial Payments for information about what would happen if another partial payment were never made on the account, as well as what happens if a partial payment is made for an amount greater than the Next Payment Due.