---
title: "Dunning Rule"
space: "Lending"
url: "https://docs.frappe.io/lending/collection/collections-delinquency-management/dunning-rule"
updated: "2026-10-16"
---

A Dunning Rule decides which overdue loans get a payment reminder and how often. For example, you can send a reminder every day for loans 1–30 days past due, and every 3 days for loans 31–60 days past due. The reminders are sent by **Process Collection Dunning**.

To access it, go to:

> Home > Lending > Collections > Dunning Rule > New

## Prerequisites

- **Loan Classification Ranges** in the Company, if you want to limit the rule to a Classification Code.
- For the other setup, see **Collections Management Overview**.

### How to configure

1. Enter a Rule Name and select the Company.
2. Select a Loan Product and/or Classification Code if the rule is only for those loans. Leave them blank to use the rule for all loans of the company.
3. Set Min DPD and Max DPD. The rule applies when the case's DPD is between these values, including both values.
4. Set Cadence Days. This is the minimum gap in days between two reminders for the same case.
5. Save.

### Fields

- **Classification Code**: optional. Limits the rule to cases in this bucket.
- **Min DPD / Max DPD**: the DPD range for the rule. Min DPD cannot be more than Max DPD. Required.
- **Cadence Days**: days between reminders. 1 means daily, 3 means every third day. Default is 1.
- **Disabled**: check this to stop using the rule without deleting it.

![](/files/imageb365ba.webp)

### Which rule is used

A rule matches a case when:

- the company is the same,
- the rule is not disabled,
- the case's DPD is between Min DPD and Max DPD,
- the Loan Product is blank or the same as the case's loan product, and
- the Classification Code is blank or the same as the case's bucket.

If more than one rule matches, the rule with the smallest DPD range (Max DPD − Min DPD) is used. If no rule matches, no reminder is sent for that case.

### Reminder message

The Dunning Rule only decides when the reminder is sent. The email comes from the standard Notification **Collection Case Dunning** (Home > Settings > Notification). It is sent to the borrower's email in the **Collection Case** and shows the loan number, days past due, the overdue amount (overdue principal + interest) and the remaining loan balance. You can change the subject, message, channel and recipients in this Notification without any code change.

## Process Collection Dunning

Process Collection Dunning sends the payment reminders. It runs automatically every day. You can also run it manually.

To access it, go to:

> Home > Lending > Collections > Process Collection Dunning > New

### How to configure

1. Set the Posting Date. The daily job uses yesterday's date.
2. Filter by Loan, Loan Product or Company if needed. Leave them blank to process all open cases.
3. Save and Submit.

### How it works

On submit, it picks all Collection Cases that are not Resolved or Closed and that match the filters. For each case:

1. If the case is already resolved, it is skipped.
2. The matching Dunning Rule is found. If there is no matching rule, the case is skipped.
3. The date of the last System Dunning activity in the case is checked. If fewer than Cadence Days have passed since then, the case is skipped.
4. The **Collection Case Dunning** notification is sent to the borrower.
5. A System Dunning row is added in the case's Activities with the rule name.
6. A **Dunning Sent** entry is added in the **Collection Case Log**, linked to this Process Collection Dunning.

If you select a Loan, the case is processed immediately and any error is shown on screen. Otherwise, cases are processed in the background in batches of 5,000. If one case fails, the error is added to the Error Log and the other cases continue.