What is renewal in SAP FS-CML - Loans Management?

SAP Term: renewal

• Component: FS-CML

• Component Name: Loans Management

• Description: An extension of the deadline for due payments. Depending on the type of product renewed, this involves extending a contract on the basis of changed conditions, or closing the original transaction and creating a new transaction for the extended period. In the loans area, the renewal process involves monitoring the loan position at the end of the fixed period, identifying possible conditions for the subsequent fixed period, and triggering the necessary processing steps such as the letter to the borrower.

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• Key Concepts: 
  Renewal in SAP FS-CML Loans Management is the process of extending the term of a loan agreement. This process involves the borrower and lender agreeing to extend the loan for an additional period of time, usually with a new set of terms and conditions. The renewal process can also involve changes to the interest rate, repayment schedule, and other aspects of the loan agreement. 
  
  How to use it: 
  In SAP FS-CML Loans Management, renewal is initiated by the borrower. The borrower must submit a request to renew the loan agreement, which must be approved by the lender. Once approved, the new loan agreement will be created and all relevant information will be updated in SAP FS-CML Loans Management. 
  
  Tips & Tricks: 
  When renewing a loan agreement in SAP FS-CML Loans Management, it is important to ensure that all relevant information is updated accurately. This includes updating the interest rate, repayment schedule, and other aspects of the loan agreement. Additionally, it is important to ensure that all parties involved in the renewal process are aware of any changes that have been made to the loan agreement. 
  
  Related Information: 
  For more information on renewal in SAP FS-CML Loans Management, please refer to the official SAP documentation. Additionally, there are many online resources available that provide detailed information on how to use SAP FS-CML Loans Management for loan renewals.