Restructuring/Write-offs · 4 min read
How to restructure a loan
Restructuring changes the terms of a live loan — typically its schedule — while preserving a clean audit trail. In Ustawi a material change is done as a restructure rather than an edit, so the history of what the loan was, and why it changed, is never overwritten.
When restructuring applies
Use a restructure when a borrower's circumstances change and the repayment plan needs to change with them — rescheduling instalments, extending the tenor, or otherwise altering terms materially. Small corrections are not restructures; a genuine change to the borrower's obligation is.
The process
- 1Raise the restructureFrom the live loan, propose the new terms. The system computes the revised repayment schedule.
- 2Approve itA restructure carries its own approval requirement — it is a credit decision, not a clerical edit — so it goes through sign-off rather than being applied silently.
- 3Apply and recordOn approval the new schedule takes effect and the change is recorded, leaving the prior terms visible in the loan's history.
Why not just edit the loan?
Editing would erase the record of the original obligation. Restructuring preserves it, which matters for audit, for classification, and for any later dispute about what was agreed.