Overview

Borrower Initiated Payments are payments made by the borrower outside of the regular payment schedule. These payments are explictly allocated towards the principal loan amount and are poured starting with the last remaining cycle downward.

Importantly, these payments do not reduce the immediate payment obligations. That means the borrower will still owe the upcoming payment even if they've made extra payments in the current cycle⁠.

How To Access

A borrower initiated payment can be created by performing a POST either to Create a payment record for a specific account or to Execute a payment attempt for a specific account, specifying PRINCIPAL_PREPAYMENT_INSTALLMENT_END_TO_START as allocation type. The payment will attempt to pay down the line item referenced through allocation_line_item_id. A request payload example can be found below.

{
    "line_item_id": "can_123",
    "original_amount_cents": 18750,
    "line_item_status": "VALID",
    "effective_at": "2023-05-12T13:00:00Z",
    "allocation": "PRINCIPAL_PREPAYMENT_INSTALLMENT_END_TO_START",
    "allocation_line_item_id": "can_456"
}

Disclaimer

PRINCIPAL_PREPAYMENT_INSTALLMENT_END_TO_START allocation type is used to signal intent, and is not a guarantee that the payment will pour directly into principal. If the payment cannot be allocated as specified, default account payment pouring ordering applies.