Goodwill Credit

Operational Use Cases

Service recovery: Credit the borrower for errors, customer experience gestures, or regulator-mandated refunds.
Dispute resolution: Apply credits after investigations without receiving cash from the borrower.
Partner-funded incentives: Record merchant-funded offsets while letting Embarc update the schedule just as it would for a borrower repayment.

Applies to both Fixed and Dynamic repayment schedule engines. Because the credit runs through the same processor as repayments, installments, delinquency, payoff quotes, and interest recalculation (if enabled) all update immediately.

No Payments API involvement: this is a direct loan transaction (POST /v1/loans/{loanId}/transactions?command=goodwillCredit). Embarc records the synthetic repayment immediately since no external cash movement occurs.

Lifecycle Snapshot

flowchart LR
    A[Identify credit amount] --> B[Submit goodwill credit command]
    B --> C[Loan records credit like a repayment]
    C --> D[Schedule and delinquency recalculated]

API Playbook

POST /v1/loans/{loanId}/transactions?command=goodwillCredit
{
  "locale": "en",
  "dateFormat": "dd MMM yyyy",
  "transactionDate": "10 Oct 2025",
  "transactionAmount": 85.00,
  "note": "Credit for delayed shipment",
  "externalId": "GW-2025-10-10-001"
}

Key validations

Loan must be Active (or fully paid/overpaid).
transactionDate cannot be in the future or before disbursement/client transfer dates.

Baseline Example (Fixed Loan A)

Issue an USD 100 goodwill credit on 15 Apr 2026 after installment #3 posted.

Transactions created

Date	Type	Total Amount	Allocation (Interest / Principal)	Notes
15 Apr 2026	GOODWILL_CREDIT	100.00	0.00 / 100.00	Allocation order: Interest → Fee → Penalty → Principal. Because no interest/fees were outstanding, the credit hits principal.

Example: if USD 30 interest were outstanding, a USD 100 goodwill credit would allocate 30/70 (interest/principal). Always check the product’s payment allocation strategy to know which component the credit will reduce first.

Loan summary delta

Metric	Before	After
Principal outstanding	USD 8,158.11	USD 8,058.11
Installment #4	1,066.19	966.19	Because principal outstanding is lower, future EMIs drop if IR recalculation is enabled, otherwise the credit simply advances the amortization schedule.

Accounting snapshot

Entry	Debit	Credit	Amount
Record credit	Goodwill Credit Expense (`505100`)	Loans Receivable (`112601`)	USD 100.00

Verification checklist

GET /v1/loans/{id}?associations=repaymentSchedule,loanSummary,transactions to see the GOODWILL_CREDIT entry and the reduced outstanding principal.
Confirm payoff quotes/EMIs reflect the credit depending on whether interest recalculation is enabled.
Use the note/externalId fields to tie the credit back to customer-care cases.

Sandbox request template

POST /v1/loans/{{baselineFixedLoanId}}/transactions?command=goodwillCredit
{
  "locale": "en",
  "dateFormat": "dd MMM yyyy",
  "transactionDate": "15 Apr 2026",
  "transactionAmount": 100.00,
  "note": "Shipping delay credit",
  "externalId": "GW-BL-A-0001"
}