Loan Rescheduling Guide – Changing to a Zero-Interest Product

Step 1: Clear the Current Loan

• Go to the member’s loan account.
• Post a repayment of Ksh XXX to the Control GL to fully settle the loan.
• Confirm the loan balance is zero.

Step 2: Create a New Loan

• Apply a new loan using the Accrued Interest (Zero Balance) Product.
• Set the new principal as follows:
• Take the previous repayment amount (Ksh XXX).
• Add Ksh 1 (Total = XXX + 1).
• If the amount has decimals, round up to the next whole shilling instead of adding Ksh 1.

Step 3: Add Deducted Fee

• Under Fees, add a Deducted Disbursement Fee equal to Ksh XXX.
• Ensure it is linked to the same Control GL used earlier.

Step 4: Complete the Process

Proceed with the standard process:

• Application
• Approval
• Disbursement

Step 5: Verify Journal Entries

• Generate a Journal Entry Report.
• Confirm that the amount credited to the bank (i.e., the disbursed amount) does not exceed Ksh 1.