A loan discount is a reduction applied to the outstanding amount a borrower owes. For example, if a borrower has a balance of 1,000 and you apply a discount of 100, their new expected repayment drops to 900.
Discounts are useful for situations like early settlement, goodwill adjustments, or fee waivers — giving you the flexibility to manage what a borrower actually pays. This guide explains the two discount types and walks through adding one to a loan.
Types of Discounts
Lendbox offers two types of discounts:
Interest rate discount — reduces the interest rate on the loan itself, lowering how much interest the borrower accumulates over time.
Fixed amount discount — deducts a specific amount directly from the total balance the borrower owes.
Step 1: Open the Loans area
In the left navigation panel, click Loan Management, then click Loans.
Step 2: Select the loan
Click on the loan you want to add a discount to. This opens the loan details page, where you can see figures such as the periodic repayment amount and the total amount due.
Step 3: Open the Discounts tab
In the header navigation panel, click the Discounts tab.
Step 4: Add a new discount
Click the Add Discount button.
Step 5: Name the discount and choose a type
Enter a name for the discount, then select the discount type — either an interest rate discount or a fixed amount discount. If you choose a fixed amount discount, set the amount to deduct from the balance.
Step 6: Save the discount
Click Save to apply the discount to the loan.
Step 7: Confirm the result
Navigate back to the Details tab to see the effect. The discount is applied, the total amount due is reduced, and the periodic repayment amount also adjusts to account for the discount.
Done
You have learned what loan discounts are and how to add them to a loan in Lendbox. With both interest rate and fixed amount options available, you can flexibly adjust what each borrower owes to suit their situation.