What is covenant holiday in SAP FS-FBS-CML-LWP - SAP Loans Workplace?

SAP Term: covenant holiday

• Component: FS-FBS-CML-LWP

• Component Name: SAP Loans Workplace

• Description: Time period during which a covenant is suspended

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• Key Concepts: 
  A covenant holiday is a period of time during which a borrower is not required to make payments on a loan. This type of holiday is typically granted when the borrower is facing financial hardship or when the loan terms are renegotiated. During this period, the borrower does not have to make any payments and the loan balance remains unchanged. 
  
  How to use it: 
  In SAP Loans Workplace, covenant holidays are used to temporarily suspend payments on a loan. This can be done by setting the payment status of the loan to “covenant holiday” in the Loan Details screen. The payment status will then be updated to “active” once the covenant holiday period has ended. 
  
  Tips & Tricks: 
  When setting up a covenant holiday, it is important to ensure that all relevant information is entered correctly. This includes the start and end dates of the holiday, as well as any other details that may be required. Additionally, it is important to keep track of when the covenant holiday period ends so that payments can be resumed on time. 
  
  Related Information: 
  For more information about covenant holidays in SAP Loans Workplace, please refer to the official documentation available on SAP Help Portal.