NetLoan - Loan Modification Overview
LOAN MODIFICATION OVERVIEW
Purpose: Through the duration of a loan, there may be events or changes that can require a reassessment or change in multiple components related to the loan, such as the following:
- Payment amounts expected throughout the loan term
- Rate expected throughout the loan term
- Duration of the loan contract/loan term
- Balloon payment
- Loan forgiveness
- Additional debt issuance
- Early payoff of loan balance
- Other non-loan payments
- Refund upon return of the underlying asset
NetLoan makes it easy for you to execute the requirements by automating the accounting under each type of modification.
Loan Modification Options
- All modifications take place through Loan Modification Proposals. If you are on a loan record you can select the Modify button to navigate to the modification proposal record. Otherwise, select NetLoan > Loan Management > Modification Register > New.
- In the Modification Type dropdown field, you will have various modification options at your disposal. Below is a list of those options and the various use cases for each one.
- Use the Links in the table to open the individual modification articles containing detailed step-by-step instructions.
Option | Use Case | Description |
Adjust Loan Terms | Adjust the term of the loan to extend or shorten based on a change to the loan agreement. | |
Adjust the APR on the loan as of a certain date to any value greater than or equal to 0%. | ||
Adjust the Borrower's monthly payment as of a certain date. | ||
Record a balloon payment from the Borrower to the Lender. | ||
Adjust Loan Balance | Lower the loan balance when the Lender extends partial or complete loan forgiveness. | |
Pay Off Remaining Balance | Allows you to pay off the remaining loan balance early. | |
Non-Loan Payment | Add/adjust non-loan payments for a loan. | |
Refund Modification | Refund a loan upon return of the underlying asset. |
- To make these modifications in mass please see the Mass Loan Modification article.
If you still have any questions after referencing the articles linked please reach out to the implementation team at support@netgain.tech.