NetLoan - Loan Rate Adjustments
Loan Rate Change
Purpose: Throughout the duration of the loan, there might be instances in which a change in the loan rate would affect the loan payments and schedule. This would require you to update the rate used after a specific date. NetLoan makes this process easy and will automatically update the loan schedule going forward using the newly input rate.
Prerequisites: Loan rate modifications must be entered in NetLoan prior to month-end amortization of the month in which the rate change will take place.
Step-By-Step Process
- If viewing the Loan record you will be able to select the Modify button at the top of the record above the Primary Information.
Otherwise, navigate to NetLoan > Loan Management > Modification Register > New. - Make sure the correct Loan and Modification Type (Adjust Loan Terms) is selected in the Primary Information section of the modification proposal record.
- (Optional) If you would like the modification proposal to be created with the "Approved" status you will want to make sure that is selected in the Status dropdown.
- On the same page, scroll down to select the Rates list under the Payments subtab.
- Enter the Effective Date of the new rate and the APR that should be applied to the loan, then click the Add button.
- You will now Save the modification proposal.
- On the saved modification proposal record a Modify Loan button will appear which you will then select. A warning box will appear asking you to confirm the modification of the loan. Select OK to proceed.
- You will be redirected to the loan record for the loan you just modified. Select the Refresh button periodically until it disappears. Once it is no longer visible, the loan schedule should reflect the change to the rate in the APR column from the selected date moving forward.
- If a modification was entered in error you can select the Reverse Modification button that is located at the top of the loan record. This will reverse the modification you just made. Check out our Modification Reversal article for more information. Note: If the amortization entries for that month have been run you will no longer have the option to reverse the modification.