Repayment Schedules and Installment Breakdown

Chinese source: 还款计划与期供拆分 Locale: en-US Audience: Internal learning

Concept

A repayment schedule is generated from the agreement, note, repayment method, rate, and term. Each installment breaks the due amount into components.

Repayment schedule = when to pay, how much to pay, and what components are due
Installment breakdown = principal, interest, fees, penalties, and related amounts

Key Fields

Field	Meaning
Installment number	The period number.
Due date	Contractual payment date.
Due principal	Principal due in this period.
Due interest	Regular interest due in this period.
Due fees	Fees due in this period.
Paid amount	Amount already paid by the customer.
Remaining due	Amount still unpaid.
Installment status	Not due, paid, partially paid, delinquent.

Repayment Method Differences

Method	Installment Pattern
Equal payment	Total payment is relatively stable; principal share rises over time.
Equal principal	Principal is fixed; interest declines over time.
Interest-only with principal at maturity	Interest due during the term; principal due at maturity.
Bullet principal and interest	Principal and interest due at maturity.
Pay-as-you-use	More flexible; focus on actual days outstanding.

Schedule Change Events

Schedules may change because of:

• Prepayment.
• Partial prepayment.
• Rate reset.
• Extension.
• Restructuring.
• Grace-period change.
• Payment-day change.

The system should preserve before-and-after schedule history for audit and customer explanation.

Payment Allocation

When a payment is short, the system decides which component is paid first. A common conceptual order is:

Fees -> penalty interest -> compound interest -> interest -> principal

Actual order must follow product parameters and bank policy.

Risks

Risk	Explanation
Schedule generation is wrong.	Customer dues, delinquency, and income recognition become wrong.
Prepayment does not recalculate the schedule.	Future installments become wrong.
Partial payment allocation is unclear.	Customer disputes and accounting breaks become likely.
Installment status is inaccurate.	Delinquency, collections, and risk classification are affected.

Related Topics

Topic	Use
Loan Products and Repayment Methods	Understand schedule rules.
Interest Accrual, Billing, Penalty Interest, and Compound Interest	Understand the interest part.
Disbursement, Repayment, and Accounting Entries	Understand how payment posts.