Loan Management FAQs

Floating Rate Loan Issues

• Why do the interest flows of my floating rate loan show zero values?

Ensure you've entered the first interest rate in the INTEREST RATES table, accessible from a separate sheet within the agreement view.

• How can I update the next interest rate for my floating rate loan?

You have two options:

Automatic Update: If the correct reference rate and tenor are specified, the system will automatically update the interest from the 'Rates -> Money Market Rates' interest rate table. If the system does not find an interest, it will be mentioned in the interest rate table that the "Interest rate is missing" for a specific date.

Manual Update: You can manually update the interest rates as needed.

Additionally, use the Loan Maturity Report to identify any pending interest updates for a certain loan.

Accounting for Unpaid Accrued Interest

• What can I do if I want to show in my accounting the unpaid accrued interest, but cannot see the payment flow?

All accounting should be done using reporting. Accrued interest can be seen, for example, in the loan’s month end report.

Handling Facility Type Loans

• For a facility type loan, how can I set the nominal amount to the max facility amount without making the first payment equal to this max amount?

Input the max facility amount as the Nominal Amount when creating the agreement. After saving, change the first payment to be the actual first capital amount payment for the right day.

Interest Cost for the Last Interest Period

• I created a payment schedule for a loan but what should I do if there’s no interest cost for the last interest period?

If the last interest period is broken, it means it is not a full period, meaning that the system does not automatically calculate the interest. In this case, go into the final payment and add interest calculation dates for the broken period (Interest calculation start date and Interest calculation end date).

Correcting Mistaken Interest Flows

• How can I correct a mistakenly created second interest flow without affecting the correct initial one?

Use the LOAN CHANGE sheet within the agreement to delete any incorrect payment flows created with the payment schedule without affecting the correct ones. Delete the latest creation by clicking ‘delete’ on that row. You can lock correct flows and clear the rest from ''Clear all''.

Capitalizing Interest

• How can I capitalize interest?

Go into that interest flow by clicking the pen icon next to that payment and enter the amount to be capitalized in the "Capitalised interest" box. If the interest is with a negative value, put the negative value and if it has positive value, insert the positive sign.

Postponing Interest Payments

• How can I postpone an interest payment?

To postpone the entire payment, go into that payment and change the "Payment date" to the new date. For partial postponements, enter the postponed amount in the "Postpone interest" box and specify the new payment date into "Postpone interest date". If the interest has a negative value, add the negative value and if it has positive value, insert the positive sign.

Setting Interest Payment Flows

• How can I create an interest payment flow starting from the first day of the quarter to the last  day of quarter?

First check 'Settings - Instruments - Debt instruments' and the instrument type you are using does not have "Include extra day in the interest calculation" selected. Normally, it is unselected and the interests are calculated from start to end by leaving the last day out.

When generating the payment flows, set the first payment period start and end dates according to the first quarter of the loan period and select Interest period as 4 times per year.

Calculating Open Interest for Annual Updates

• How do I calculate open interest for a loan updated annually?

Check your interest calculation dates. If you don't have "Include extra days in the interest calculation" the interest is calculated by adding the first day and leaving the last day out. If it is active, it is calculated from start to end + one extra day, ensuring you receive the correct number of days.