Interest Pause

Operational Use Cases

• Disaster relief: Suspend interest accrual for affected borrowers during a relief window.
• Regulated moratoria: Implement government-mandated interest holidays without altering principal schedules.
• Operational delays: Pause interest while awaiting merchant fulfillment or contract adjustments on Dynamic loans.

Supported on the Dynamic repayment schedule engine only. Loans must be interest-bearing with interest recalculation enabled so the schedule can adapt to the pause.

Validation checklist:

• Loan status must be Active.

• Loan schedule type must be Dynamic Schedule.

• Loan must be interest-bearing and have “recalculate interest” enabled.
• startDate ≥ submitted-on date; endDate ≤ maturity date; endDate ≥ startDate.
• Pause windows cannot overlap existing interest pauses on the loan.

Lifecycle Snapshot

flowchart LR
    A[Define pause window] --> B[Create interest pause]
    B --> C[System stores term variation and reprocesses loan]
    C --> D[Interest accrual skips paused dates]
    D --> E{Need changes?}
    E -->|Update| F[Submit update for existing pause]
    E -->|Remove| G[Delete pause variation]

API Playbook

1. Create the pause

   HTTP

   POST /v1/loans/{loanId}/interest-pauses
   {
     "startDate": "2025-11-01",
     "endDate": "2025-11-30",
     "dateFormat": "yyyy-MM-dd",
     "locale": "en"
   }

   Validations:

   • Loan must be Active, Dynamic engine, interest-bearing, and interest-recalculation-enabled.
   • startDate ≥ loan submission date; endDate ≤ maturity date; no overlap with existing pauses.

2. List pauses

   HTTP

   GET /v1/loans/{loanId}/interest-pauses

3. Update

   HTTP

   PUT /v1/loans/{loanId}/interest-pauses/{variationId}
   {
     "startDate": "2025-11-05",
     "endDate": "2025-12-05",
     "dateFormat": "yyyy-MM-dd",
     "locale": "en"
   }

4. Delete

   HTTP

   DELETE /v1/loans/{loanId}/interest-pauses/{variationId}

Tips for Operations Teams

• Keep a master log (via note fields or external systems) of why each pause was granted to simplify audits.
• Remember: pauses do not change due dates—principal remains payable on the original schedule once the pause ends.

Baseline Example (Dynamic Loan B)

Pause interest between 07 Feb 2026 and 05 Mar 2026 (spanning installments #3–#5).

API request

POST /v1/loans/{{baselineDynamicLoanId}}/interest-pauses
{
  "startDate": "2026-02-07",
  "endDate": "2026-03-05",
  "dateFormat": "yyyy-MM-dd",
  "locale": "en"
}

Impact

Loan summary excerpt

// before
{ "interestOutstanding": 4.62, "status": "Active" }
// after pause + Close of Business
{ "interestOutstanding": 0.00, "status": "Active" }

Verification checklist

1. GET /v1/loans/{id}/interest-pauses to confirm the variation is stored.
2. GET /v1/loans/{id}?associations=repaymentSchedule to ensure the affected installments show interest reduced to zero.
3. Run the Close of Business/accrual job covering the pause window; check GL entries for the reversed interest (debit LOAN_PORTFOLIO, credit INTEREST_INCOME).
4. When the pause ends, confirm new interest accrual resumes automatically.