Loan Maintenance

You can use loan maintenance to view the loan's amortization schedule and financial history as well as to change the terms of a loan, including the loan amount (prior to SA activation only), interest rate, payment amount and number of payment periods.

Open Menu > Customer Information > Loan > Search to maintain a loan.

Description of Page

The fields at the top of the page are informational only. The Payoff Balance is the total amount owed by the customer (excluding any interest that may have accrued since the last bill). The Current Balance is the amount currently owed by the customer. The Principal Balance is the total principal amount left unbilled. Refer to Payoff Balance and Current Balance for Loans for more information.

The Loan Amount is the amount originally loaned to the customer. The Standard Interest Rate is the standard interest rate defined on the loan's SA type. If the SA type allows, the standard interest rate may be overridden by a start option and/or manually. The Next Payment Amount is the effective periodic payment amount as of the next bill.

The Payment(s) shows the number of payments that were used to calculate the original loan schedule.

The Override Interest Rate grid is used to override the standard interest rate. The interest rate can only be modified if the loan's SA type allows it. Note that changing the interest rate changes the loan amortization schedule. To override the interest rate:

• Specify an End Date for the override rate in effect if there is one.
• Click + and specify the Start Date and the new Interest Rate. You can also specify the End Date of the new override rate, but this is not required.

The Payment Amount grid is used to maintain the effective periodic payment amount. Note that changing the payment amount changes the amortization schedule. To change the payment amount:

• Click + and specify the Effective Date and the new payment Amount.

The History grid shows the loan's financial history in reverse chronological order. The financial history grid displays the following information:

• The Arrears Date is used to compute how many days old the debt is. In the context of a loan, debt only refers to the billed amount (the amount the customer needs to pay to stay current).
• Financial Transaction Type displays the type of financial transaction except for adjustments. For adjustments, the adjustment type's description is shown.
• Current Amount is the effect of the FT on the service agreement's current balance.
• Current Balance is the amount owed by the customer at the time of the transaction.
• Payoff Amount is the effect of the FT on the service agreement's payoff balance. The value is grayed out if it is the same as the current amount.
• Payoff Balance is the total amount owed by the customer. The value is grayed out if it is the same as the current balance.

The Forecasted Schedule displays the loan amortization schedule. The first row of the schedule shows the current cumulative interest, current cumulative principal and the current principal balance. All other rows show the future amortization schedule based on the loan details. The forecasted schedule includes the following information:

• The Loan Period displays the forecasted payment period dates based on the billing frequency and the payment periodicity. The Loan Period is blank for the first row, which shows current cumulative amounts.
• The Amount displays the projected amount of that payment. The Amount is zero for the first row, which shows current cumulative amounts only.
• The Interest displays the projected amount of interest in the payment amount. The Amount is zero for the first row, which shows current cumulative amounts only.
• The Principal displays the projected amount of principal in the payment amount. The Amount is zero for the first row, which shows current cumulative amounts only.
• The Cumulative Interest is the total interest amount that would theoretically be billed at that loan period.
• The Cumulative Principal is the total principal amount that would theoretically be billed at that loan period.
• The Principal Balance is the remaining principal balance that would theoretically be remaining at the loan period.

The Renegotiate Future Payments area allows you to change the terms of the loan. You can modify the following options:

• You can modify the Loan Amount only if the SA has not been activated. After the SA is activated, this field is for information only.
• The Interest Rate allows you to change the interest rate. When changing the interest rate, specify either the number of payment amounts or the payment amount and click Calculate to recalculate the amortization schedule.
• The Number of Payment Periods allows you to change the number of periods remaining in the loan's term. The Frequency displays the periodicity of the payments. If you change the number of payment periods, use the Calculate button to recalculate the payment amount.
• The Payment Amount allows you to change the amount of individual payments. If you change the payment amount, use the Calculate button to recalculate the number of periods.
• The Calculate button recalculates the payment amount (when you specify the interest rate and the number of payment periods) or the number of payment periods (when you specify the interest rate and the payment amount) and recomputes the loan amortization schedule based on these new terms.