Loan Management FAQs

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, which can be found from a separate tab 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 Settings -> Market Data -> Money Market Rates interest rate table. If the system does not find an interest for that specific date when your loan has an interest fixing, it is mentioned in the interest rate table that the 'Interest rate is missing' for that date.

Manual Update: You can manually update the interest rate on the 'Interest rates' view which is found from a separate tab within the agreement view.

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

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

All accounting should be done through Reporting module. Accrued interest can be seen for example in the Month end report.

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).

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''.

How can I capitalise 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.

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.

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.

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 the maturity date is inclusive.