On this tab, you can provide all the details of the loan repayment.
The Loan Agreement (create) form. The Amortization Schedule tab
Use the Schedule Type field to select the type of amortization schedule from the following options:
- Even Total Payments: With this schedule, the amounts of all the payments are the same.
- Even Principal Payments: With this schedule, the payment amounts are different, however, they all include the same amount of principal.
- Interest-Only Payments: With this schedule, the interest amount is paid monthly, while the entire principal amount is paid at maturity.
- Principal-Only Payments: This schedule suggests even monthly payments of principal, while the interest is paid at maturity.
- Custom Schedule: You can specify the payment amounts manually as it was agreed with the debtor or borrower.
- Lump Sum at Maturity: The principal amount and the accrued interest amount must be paid at maturity.
In the Payment Frequency field, specify how often repayments will be made. The following options are available:
- Month: To make payments monthly.
- Quarter: To make payments once in a quarter.
- Half Year: To make payments twice a year.
- Year: To make payments twice a year.
Use the Interest Calculation Method field to select the interest calculation method to be used for the loan repayments; the following options are available:
- Actual/360: For interest calculation, the month contains the actual number of days, while any year contains 360 days for simplicity.
- 30/360: For simplicity, every month contains 30 days, and every year contains 360 days.
- Actual/365: For interest calculation, the month contains the actual number of days, while the year contains 365 days.
In the Loan Start Date and Loan End Date fields, specify the period for which loan is taken. The duration of the loan (in months) will be calculated automatically and will appear in the Loan Term in Months field. Alternatively, you can enter the start date and duration, and the end date will be calculated automatically.
In the Repayment Start Date field, specify the date when repayment of the loan by the entity or by the borrower should start.
Select the suitable method and click the Calculate button to view the calculated monthly amounts in the table below.
The Payment Date column shows the date of the scheduled payment.
The Principal column shows the amount of the loan repaid by this payment.
The Interest column shows the amount of interest in this payment.
The Total Payment column shows that sum of the principal and interest amounts in the scheduled payment.
You can view the remaining loan principal amount in the Unpaid Balance column.
If needed, you can provide remarks for specific payments in the Remarks column.