Repayment

Use

You map loan repayments in the system by assigning a repayment type in the condition header for the loan and entering the corresponding condition type.

The following repayment types are available:

Repayment type

Short name

Remarks

1

Maturity

Repayment at the end of the term

2

Installment

Equal repayment amounts distributed over the full term

3

Annuity

The sum of interest payment and repayment amounts (annuity) is constant. Over time, the structure of the annuity changes. The interest amount falls, while the repayment amount increases. The exact structure depends on the arrangements for repayment settlement.

Note Note

All partial disbursements and repayments are considered for the correct period.

End of the note.

4

Perpetual bonds

Not supported for loans.

5

Other

 

6

Annuity (imputed)

Neither partial disbursements nor repayments are included for the annuity calculation.

See Imputed Annuity Repayment Calculation

The resulting condition types are as follows:

  • Final repayment

  • Installment repayment

  • Annuity repayment

  • Unscheduled repayment

  • Repayment settlement

    If you do not want to settle the repayment as at each repayment due date, you can use the Repayment Settlement function to make different settings relating to when repayments actually reduce the interest calculation capital.

Procedure

If you have not selected a repayment type in the condition header, no repayment entries are required. As soon as you have selected a repayment type, you must enter the corresponding condition item.

Final repayment

  1. In the condition header, choose repayment type Maturity .

  2. You do not need to enter a condition item. When you save the condition data, the system creates the condition item Final Repayment automatically.

    The system draws the date required (term end) from the condition header.

Installment repayment

  1. In the condition header, choose repayment type Installment .

  2. Use the function Insert Additional Items to enter the condition type Installment Repayment in the Condition Items area.

  3. Enter the Effective from date.

  4. Enter a percentage rate or an amount.

  5. If you enter a percentage rate, the system calculates the repayment amount on the basis of the percentage rate, the repayment frequency and the loan amount. This installment amount is calculated once and remains constant throughout the term of the loan.

    If you enter an amount, this amount is taken to be the installment.

    This installment is seen in the context of the specified frequency. The installment payment is effective from 08/01 and you want to make monthly repayments of 1 500 USD. The first calculation date and due date is 09/01. The first installment amount is therefor 1550.00 USD.

  6. Enter the frequency.

  7. Enter the calculation date and the due date .

  8. If you activate the IS (immediate settlement) indicator, the system settles each repayment flow as at the payment date (due date).

    If you do not activate this indicator and have not entered a separate condition item for repayment settlement , the system prompts you to enter the relevant data.

Annuity repayment

  1. In the condition header, choose repayment type Annuity or Annuity (Imputed) .

  2. Use the function Insert Additional Items to enter the condition type Annuity Repayment in the Condition Items area.

  3. Enter the Effective from date.

  4. Enter a percentage rate or an amount.

  5. If you enter a percentage rate, the system calculates the annuity on the basis of the percentage rate, the frequency and the loan amount. The annuity repayment amount is calculated by deducting the interest payment from the annuity.

  6. Enter the frequency.

  7. Enter the calculation date and the due date .

  8. If you activate the IS (immediate settlement) indicator, the system settles each repayment flow as at the payment date (due date).

    If you do not activate this indicator and have not entered a separate condition item for repayment settlement , the system prompts you to enter the relevant data.

Unscheduled repayment

If part or all of the loan is paid back before it is due, you can use the condition type unscheduled repayment .

Note Note

You can execute an unscheduled (partial) payoff using the Payoff .

End of the note.

  1. Use the function Insert Additional Items to enter the condition type Unscheduled Repayment in the Condition Items area.

  2. Enter the Effective from date.

  3. Enter the repayment amount, the calculation date and the due date.