Loan write-off action is taken when a loan is deemed uncollectible or when a loan officer, or any other user with set permission, determines that the loan cannot be repaid. Consequently, the loan is recognized as a loss and recorded as such.
When a loan is written off, the loan status changes to Closed (Written-off). Therefore, no further accounts can be taken on the loan account.
It is important to carefully consider and assess the loan before initiating the write-off process. Once a loan is written off, the action cannot be undone.
To write off a loan account:
- On the "Active" loan account, click on the Take Action button
- Add a note on the reason you are writing off the account and click the submit button to write to the loan.
Updated 4 months ago