NetLoan - Manage Index Rate Types

When variable loan payments are dependent on an index or rate, NetLoan can capture the index or rate upon which the loan rate is dependent. The list of rates available for selection is managed within NetLoan setup center category. 

STEP BY STEP PROCESS

  • Create a new index or rate by navigating to the Index Rate List page through NetLoan > NetLoan Setup > Manage Index Rates and select the NetLoan Index Rates list
  • Select New NetLoan Index Rates

               

  • Enter the Rate Index Name.
  • Select the Rates tab and enter the Effective Date and Annual Percentage Rate applicable to the rate index. Rates will be set up and added moving forward using this tab.
  • Click Save.

  • Select Initiate Sync to create rate records for each loan tagged with the Index Rate Type.

If a loan is commenced prior to the first Effective Date on the rate index, NetLoan will use the Annual Percentage Rate field as the interest rate from the beginning of the loan to the effective date of the first rate index rate.

After the rates are created for each loan record, reference the Update Loan Schedules article or the Automatic Modifications article to update loan amortization schedules.

CURRENT LIMITATIONS

All rate records from a NetLoan index will be pushed to linked loans when a sync is performed. This means that all loans linked to the same index must pull rates with the same frequency and on the same dates as each other. Otherwise, you will need to create a separate index for a loan/loans that pull rates with a different frequency or on different dates. If loans vary widely in terms of the frequency and dates that rates are pulled, it may be simpler to input the rates directly on the Rates tab of the loan records rather than creating and linking multiple indexes.

NetLoan currently does not connect to any external data source. As such, index rates will need to be added to the NetLoan index either manually or via CSV import. This needs to be performed prior to syncing and running journals each month (or as frequently as rates are updated).

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