Step-by-Step: Reschedules & Waivers

When borrowers encounter unexpected economic hardship or technical payment errors, BiiTrust provides two specialized recovery tools: Loan Rescheduling (modifying terms) and Charge Waivers (forgiving accrued penalties or fees).

1. Rescheduling a Loan (/loan/:hex/reschedule)

Rescheduling restructures a delinquent loan to establish a realistic, achievable repayment plan without writing off the debt:

When to Reschedule:

  • Borrower experienced a verifiable event (e.g., medical emergency, crop failure, market fire).
  • Borrower demonstrates good faith and willingness to repay under revised terms.
  • Collateral and guarantor support remain intact.

The Rescheduling Steps:

  1. Step 1 — Baseline Review:
    • Inspect the current unpaid principal and accrued charges.
    • Any accumulated penalties must either be settled upfront or formally waived prior to rescheduling.
  2. Step 2 — Revised Loan Terms:
    • Extended Duration: Add additional months or weeks to reduce the periodic installment burden.
    • Repayment Moratorium (Grace Period): Grant a 1-to-3 month grace window on principal repayments to allow the borrower’s business cashflow to recover.
    • Revised Amortization Method: Switch between flat and declining balance if appropriate.
  3. Step 3 — Re-amortize & Confirm:
    • The system regenerates a new repayment schedule for the remaining principal balance.
    • Requires Branch Manager authorization.
    • The loan status changes to restructured, resetting the DPD counter to zero.

2. Waiving Charges (/loan/:hex/waive)

Authorized Branch Managers and Directors can forgive accrued late penalties, service fees, or interest:

[!WARNING] Principal Cannot Be Waived Here: Forgiving principal is a formal loss event handled exclusively through the Write-Off Flow (/loan/:hex/writeoff).

The Three Steps of a Waiver:

Step 1: What is Owed

  • Displays the loan’s open installments.
  • Select whether you are waiving charges on a single installment (e.g., installment #3) or across every open installment.
  • Click Continue.

Step 2: What to Waive

  • Select the Charge:
    • Late Penalty: Forgiving penalty fees accrued during grace days.
    • Fees: Forgiving administration or inspection fees.
    • Interest: Forgiving interest accrued during a hardship period.
  • Waiver Amount:
    • The Whole Charge: Forgives 100% of the accrued amount.
    • Part of It: Enter a specific KES figure to forgive partial charges.
  • Mandatory Justification Note:
    • Record the exact business reason for internal audit (e.g., “Customer attempted M-Pesa payment during telecom outage on 3 Sep; waiving late penalty accrued through no fault of borrower”).
  • Click Continue.

Step 3: Confirm & Sign

  • Review the before-and-after balances.
  • Check the mandatory acknowledgement box: “This forgiveness is within my authorized delegation and the reason above is accurate.”
  • Click Waive. The forgiven charge is immediately cleared from the borrower’s ledger, reversing the corresponding income accrual in the general ledger.