Loan Restructure
Overview
Loan Restructure — Business Overview
Loan Restructure is a business document in Dafater used to formally revise the terms of an existing loan when the original repayment plan is no longer suitable for the customer or the business. It provides a controlled way to adjust repayment schedules, amounts, or durations while maintaining transparency, compliance, and accurate loan records.
Purpose in Business Operations
Loan Restructure is used when a borrower needs relief or adjustment due to financial difficulty, changing income conditions, or negotiated business decisions. Instead of canceling or defaulting a loan, the business can restructure it in a documented and approved manner.
This document helps the organization:
- Retain customers who may otherwise default
- Manage credit risk more effectively
- Maintain accurate financial and loan performance records
- Ensure all changes to loan terms are formally approved and traceable
Prerequisites and Setup Requirements
Before using Loan Restructure, the following should be in place:
- An active loan already issued to a customer
- Clear loan policies defining when restructuring is allowed
- Defined approval authority for loan changes
- Up-to-date repayment and outstanding balance information
- Agreement or understanding with the customer on revised terms
Having these elements ensures that restructuring decisions are consistent, fair, and aligned with business rules.
Typical Workflow and Business Process Fit
Customer Request or Internal Review
A restructuring request may come from the customer or be initiated internally after reviewing repayment issues.Assessment and Proposal
The business evaluates the customer’s situation and proposes revised loan terms such as:- Extended repayment period
- Adjusted installment amounts
- Revised repayment start date
Creation of Loan Restructure
The Loan Restructure document is created to capture:- Original loan details
- Revised terms
- Effective date of the changes
Approval Process
The restructure is reviewed and approved by authorized personnel to ensure compliance with company policies.Implementation
Once approved, the revised terms become effective, and future repayments follow the new structure.Ongoing Monitoring
The restructured loan is monitored closely to ensure the customer adheres to the new repayment plan.
Key Business Scenarios Where Loan Restructure Is Essential
- Temporary financial hardship faced by a borrower
- Delinquent loans where restructuring can prevent default
- Economic changes affecting a group of borrowers
- Customer retention strategies for long-term relationships
- Regulatory or policy-driven relief programs
In these situations, Loan Restructure allows the business to act proactively rather than reactively.
Important Considerations for Users
- Ensure restructuring decisions follow company credit and risk policies
- Clearly communicate revised terms to the customer before final approval
- Use Loan Restructure only for genuine and justified cases, not as a routine adjustment
- Monitor restructured loans more closely, as they often carry higher risk
- Maintain proper documentation for audits, compliance, and reporting
Summary
Loan Restructure in Dafater is a critical business tool for managing loan adjustments responsibly. It supports customer retention, reduces defaults, and ensures that any change to loan terms is controlled, approved, and clearly documented within the overall loan management process.
Basic Information
- Module: Loan Management
- Document Type: Other
Fields
| Field Name | Label | Type | Required | Options | Description |
|---|---|---|---|---|---|
| loan | Loan | Link | ✓ | Loan | Original loan being restructured under Dafater. |
| loan_disbursement | Loan Disbursement | Link | Loan Disbursement | Specific disbursement record linked to the loan. | |
| applicant_type | Applicant Type | Select | Employee, Member, Customer | Type of borrower requesting the loan restructure. | |
| applicant | Applicant | Dynamic Link | applicant_type | Applicant entity associated with the loan. | |
| repayment_method | Repayment Method | Data | - | Existing repayment method before restructuring. | |
| restructure_type | Restructure Type | Select | Normal Restructure, Pre Payment, Advance Payment | Nature of restructuring applied to the loan. | |
| status | Status | Select | , Initiated, Approved, Rejected | Current approval status of the restructure request. | |
| totalamountpaid | Total Amount Paid | Currency | - | Total amount paid by borrower till restructure. | |
| totalprincipalpaid | Total Principal Paid | Currency | - | Total principal amount repaid till date. | |
| company | Company | Link | Company | Company managing the loan in Dafater. | |
| restructure_date | Restructure Date | Datetime | ✓ | - | Date and time of loan restructuring. |
| reasonforrestructure | Reason for Restructure | Small Text | - | Business reason for requesting loan restructure. | |
| oldrepaymentfrequency | Old Repayment Frequency | Data | - | Repayment frequency before restructuring. | |
| moratoriumenddate | Moratorium End Date | Date | - | End date of approved moratorium period. | |
| loan_product | Loan Product | Link | Loan Product | Loan product under which loan was issued. | |
| old_tenure | Old Tenure | Int | - | Original loan tenure in months. | |
| completed_tenure | Completed Tenure | Int | - | Loan tenure already completed in months. | |
| oldrateof_interest | Old Rate of Interest | Percent | - | Interest rate applicable before restructuring. | |
| oldloanamount | Old Loan Amount | Currency | - | Original sanctioned loan amount. | |
| old_emi | Old EMI | Currency | - | EMI amount before loan restructuring. | |
| currentrestructurecount | Current Restructure Count | Int | - | Number of times loan has been restructured. | |
| prerestructuredpd | Pre Restructure DPD | Int | - | Days past due before restructuring. | |
| disbursed_amount | Disbursed Amount | Currency | Company:company:default_currency | Total amount disbursed to the borrower. | |
| totaloverdueamount | Total Overdue Amount | Currency | Company:company:default_currency | Total overdue amount at restructure time. | |
| restructure_charges | Restructure Charges | Currency | - | Charges applied for processing restructure. | |
| waiveoffrestructure_charges | Waive Off Restructure Charges | Check | - | Indicates whether restructure charges are waived. | |
| pendingprincipalamount | Pending Principal Amount | Currency | Company:company:default_currency | Outstanding principal amount pending repayment. | |
| availablesecuritydeposit | Available Security Deposit | Currency | Company:company:default_currency | Security deposit available for adjustment. | |
| principal_overdue | Principal Overdue | Currency | Company:company:default_currency | Overdue principal amount before adjustments. | |
| principal_adjusted | Principal Adjusted | Currency | Company:company:default_currency | Principal amount adjusted during restructuring. | |
| balance_principal | Balance Overdue Principal | Currency | - | Remaining overdue principal after adjustments. | |
| interest_overdue | Interest Overdue | Currency | Company:company:default_currency | Overdue interest amount before restructuring. | |
| unaccrued_interest | Unaccrued Interest | Currency | Company:company:default_currency | Interest not yet accrued till restructure date. | |
| penalty_overdue | Penalty Overdue | Currency | Company:company:default_currency | Overdue penal interest amount. | |
| charges_overdue | Charges Overdue | Currency | Company:company:default_currency | Other overdue charges excluding interest. | |
| adjustedinterestamount | Adjusted Amount | Currency | Company:company:default_currency | Interest amount adjusted during restructuring. | |
| adjustedunaccruedinterest | Adjusted Amount | Currency | Company:company:default_currency | Unaccrued interest adjusted during restructuring. | |
| interestwaiveramount | Interest Waiver Amount | Currency | Company:company:default_currency | Interest amount waived as part of restructure. | |
| unaccruedinterestwaiver | Unaccrued Interest Waiver | Currency | Company:company:default_currency | Unaccrued interest waived during restructuring. | |
| penalinterestwaiver | Penal Interest Waiver | Currency | Company:company:default_currency | Penal interest waived during restructuring. | |
| otherchargeswaiver | Other Charges Waiver | Currency | Company:company:default_currency | Other charges waived during restructuring. | |
| balanceinterestamount | Balance Amount | Currency | Company:company:default_currency | Remaining interest payable after adjustments. | |
| balanceunaccruedinterest | Balance Amount | Currency | Company:company:default_currency | Remaining unaccrued interest after adjustments. | |
| balancepenaltyamount | Balance Amount | Currency | Company:company:default_currency | Remaining penal interest after adjustments. | |
| balance_charges | Balance Amount | Currency | Company:company:default_currency | Remaining charges payable after adjustments. | |
| treatmentofnormal_interest | Interest Treatment | Select | Capitalize, Add To First EMI | Treatment method for overdue normal interest. | |
| unaccruedinteresttreatment | Unaccrued Interest Treatment | Select | Capitalize, Add To First EMI | Treatment method for unaccrued interest. | |
| treatmentofpenal_interest | Penal Treatment | Select | Capitalize, Carry Forward | Treatment method for penal interest. | |
| treatmentofother_charges | Charges Treatment | Select | Capitalize, Carry Forward | Treatment method for other overdue charges. | |
| newrateof_interest | New Rate Of Interest | Percent | - | Revised interest rate after restructuring. | |
| repaymentstartdate | New Repayment Start Date | Date | - | Start date for new repayment schedule. | |
| loan_repayment | Loan Repayment | Link | Loan Repayment | Linked repayment entry generated after restructure. | |
| newrepaymentmethod | New Repayment Method | Select | , Repay Fixed Amount per Period, Repay Over Num... | Repayment calculation method after restructuring. | |
| newrepaymentperiodinmonths | New Repayment Period in Months | Int | - | Revised repayment tenure in months. | |
| newmonthlyrepayment_amount | New Monthly Repayment Amount | Currency | Company:company:default_currency | Revised monthly repayment amount. | |
| newloanamount | New Loan Amount | Currency | Company:company:default_currency | Loan amount after restructuring adjustments. | |
| amended_from | Amended From | Link | Loan Restructure | Reference to previous loan restructure record. |
Permissions
| Role | Read | Write | Create | Delete | Submit | Cancel |
|---|---|---|---|---|---|---|
| System Manager | ✓ | ✓ | ✓ | ✓ | ✓ | |
| Loan Manager | ✓ | ✓ | ✓ | ✓ | ✓ |
Related DocTypes
| DocType | Relationship | Module |
|---|---|---|
| Loan Repayment | Linked from | Loan Management |
| Loan Repayment Schedule | Linked from | Loan Management |
| Company | Links to | Setup |
| Loan | Links to | Loan Management |
| Loan Disbursement | Links to | Loan Management |
| Loan Product | Links to | Loan Management |
| Loan Repayment | Links to | Loan Management |
| Loan Restructure | Links to | Loan Management |