NetLoan - Create a New Loan Record
NAVIGATE TO THE LOAN RECORD FORM
Use Case: These steps can be followed to review and obtain information on an existing loan or as a starting point to create a new loan.
Prerequisite: All setup & configuration activities need to be complete.
STEP BY STEP PROCESS
- In order to review an existing loan, you can navigate to the Loan Register (NetLoan > Loan Management > Loan Register) in the menu ribbon to search for or select an existing loan record.
- Otherwise, to create a new loan record, select NetLoan > Loan Management > New Loan
- A blank, new NetLoan Loan Form appears, from which you can create a new loan
- Manually update the Primary Information form section and fields as indicated below
Field Name | Required | Description | Example |
Loan ID | Auto-generated | A unique ID for the loan and the primary identifier within NetLoan for the loan record. | LN0037 |
Loan Name | Yes | Free-form input for NetLoan users. This can be used for the lender’s contract # or other identifying information for the loan. | 17 Cherry Tree Lane, London KY |
Loan Type | Yes | Assign the loan type from the drop-down list, which are defined as part of the NetLoan settings. | Real Estate |
| Lender | Yes | The lender for the loan. This is the lender to whom loan bills will be paid. | McGeever Properties |
Subsidiary | Yes | The subsidiary where the loan will reside. | Company, Inc. |
| Department | No | The department where the loan will reside. | Marketing |
| Class | No | The class where the loan will reside. | Service |
| Location | No | The location where the loan will reside. | US - West |
Currency | Yes | The contract currency for the loan, typically the currency in which payments will be made. This defaults to the lender’s primary currency. | US Dollar |
| Schedule Calculation Type | Yes |
| Calculate Payment |
Loan Notes | No | A text area field to include any relevant notes or loan-related information. | Contact Linda for details |
- Also update the Schedule Information section and fields as indicated below
| Field Name | Required | Description | Example |
|---|---|---|---|
Status | Yes | Pending = schedules can be created, but journals cannot Commenced = the loan is ready for posting journal entries Fully Paid = the loan has been paid off in full | Commenced |
Origination Date | Yes | The date on which the lender makes the funds available to the borrower. NOTE: NetLoan uses a full month convention to generate schedules; i.e., mid-month dates will not result in partial month calculations. | 01-Jan-2019 |
Initial Payment Date | Yes | Input the date the first payment will be paid. Must be on or after the Origination Date. | 01-Jan-2019 |
| Maturity Date | Calculated | The anticipated ending date of the loan, which is calculated (origination date + loan term). | 31-Dec-2021 |
Loan Term | Yes | The anticipated duration (in whole months) of the loan. | 36 |
| Initial Loan Balance | Yes | Input the initial balance of the loan before the down payment. | $400,000 |
Initial Monthly Payment | Yes | Input the monthly payment for the loan. | $1,500.00 |
| Payment Day | Yes | The day of the month to book payments for the loan. | 31st |
| Business Day Convention | Yes | Affects which days loan payments post (and therefore affects interest calculations) when the expected payment day falls on a weekend or a holiday.
| Unadjusted |
| Day Count Convention | Yes |
| 30/360 |
| Annual Percentage Rate | Yes | Input the annual percentage rate on the loan. | 5% |
Loan Origination Fees for Capitalization | Yes | Input the net loan origination fees minus direct loan origination costs for the loan. | $8,000.00 |
Down Payment | Yes | Input the down payment on the loan. | $8,000.00 |
Balloon Payment | Yes | Input the balloon payment amount on the loan (to be paid in the final period), if it differs from the monthly payment. | $1,000.00 |
- Click Save to establish the loan and generate a Loan ID
- The completed loan record header details may appear as follows