Repayment is the act of paying back money previously borrowed from a lender. Typically, the return of funds happens through periodic payments which include both principal and interest. Loans can usually also be fully paid in a lump sum at any time, though some contracts may include an early repayment fee.
Click the Repayment button and the new window opens.
There are six fields you may or may not change depending on repayment type.
- Date - the date of repayment
- Repayment type - a dropdown list containing four options:
- Normal Repayment - provide total amount and other fields will be calculated based on this value
- Normal Manual Repayment - provide principal, interest and penalty values and the total amount will be calculated as the sum of these values
- Early Partial Repayment - provide total amount and other fields will be calculated based on this value
- Early Total Repayment - provide total amount and other fields will be calculated based on this value
- Total - total repayment amount
- Principal - principal amount repayment
- Interest - interest amount repayment
Penalty - penalty amount repayment
The main difference between manual repayment and others is splitting the total amount between principal, interest and penalty. In manual type, you can choose how much money goes to principal, to interest and to penalty while normal repayment does it according to IFRS (International Financial Reporting Standards).