Settlements

Loan settlement refers to an agreement between a borrower and a lender to resolve the outstanding loan balance for an amount less than what is owed. In a loan settlement, the lender agrees to accept a lump-sum payment that is less than the total outstanding balance in exchange for closing the loan. This is often done in cases where the borrower is facing financial difficulties and is unable to repay the full amount of the loan.

To make a Settlement Entry, go to:

Home > Lending > Disbursement and Repayment > Loan Repayment

1. How to make a settlement

1. Go to the Loan Repayment List, and click on Add Loan Repayment.
2. Enter the loan account, repayment type as Full/Partial or Write Off Settlement and the amount to be repaid.
3. Save and submit