Operation "Transfer of Prepayment from Interest to Principal"

The operation "Transfer of Prepayment from Interest to Principal" transfers Prepayment from interest to Principal for the entire available Prepayment amount on interest as of the process date.

The need for such a process arises if previously the distribution of Prepayment amounts occurred according to the Schedule, but at a certain point the contract needs to be repaid early or a partial early repayment needs to be made. Due to the fact that the remaining Principal can only be repaid using the available Prepayment on Principal (not interest), it is necessary to perform a prepayment transfer. To do this, you need to go to the financial information for the contract and click the adjustment button.

Let's consider an example: on the repayment day, the client deposits an amount exceeding the regular payment, and the payment is automatically distributed to repay the current debt, to prepayment on Principal, and to prepayment on interest.

In order to early credit all prepayment towards Principal repayment, you need to click the adjustment button and select the operation "Transfer of Prepayment from Interest to Principal". Specify the date and time and click the "Start Process" button.

After the process is successfully completed, all prepayment will be distributed to Principal.