Expired Account Enquiry Function - Introduction

Credit account expiry date refers to the last date that the respective borrower can still enjoy the credit facility in his or her credit account. For the case of credit facility amount that has not been either fully disbursed or disbursed at all, no further disbursement will be allowed.

Credit account expiry date will be generated for the respective credit facility account in system once the facility has been disbursed (whether fully or partially) and commenced repayment.

Credit facility accounts are often reviewed periodically with frequency determined by the central bank that governs the concerning bank or financial institution as well as the internal policy of the bank or financial institution.

Therefore, for normal performing credit accounts, the respective expiry date will normally be a future date as compared to the present system application date until the date the respective credit facility account has been fully repaid or settled.

When credit accounts are expiring soon or have expired, it will be a great concern to the bank or financial institution to possibly take the following actions, depending on the conditions of the respective account towards.

  • Review to ensure compliance with the relevant terms and conditions of the facility and prompt repayment.

  • Cancel the undisbursed facility offered to customer earlier, since customer no longer required it.

  • Reduce or cancel the credit facility offered to customer earlier, since the balance of the credit facility is no longer required due to some reasons.

  • Review or renew and repackage the credit facility in order to cater to the customer’s present financial needs and repayment capabilities.

  • Review or renew and restructure the credit facility in order to cater to customer’s financial capabilities to ensure continuous prompt repayment.

  • Review or renew and reschedule the credit facility in order to cater to customer’s financial capabilities to ensure continuous prompt repayment.

Therefore, this function will come in handy to allow user to track the list of expired or expiring credit accounts for timely actions to be taken.