Loan Foreclosure

There will be many scenarios where a borrower might want to foreclose the loan, before completing its actual tenure, by repaying all the applicable dues.

1. Creating the foreclosure payment

Creating a foreclosure payment is the same as creating any other Loan Repayment in Frappe Lending.

For posting a foreclosure payment, select the repayment type as "Loan Closure". Post the applicable closure amount and submit the entry. If the amount is incorrect, the system will give a validation.

Loan Closure Repayment Type

2. Applying foreclosure charges

Users can also add charges during the foreclosure payment, as shown below. While adding any charges to the foreclosure payment. Make sure to include those in the total repayment amount as well.