NetLoan - Loan Payment Adjustment Overview
LOAN PAYMENT ADJUSTMENT OVERVIEW
Purpose: Through the duration of a loan, there may be events or changes that can require an additional one-time payment or a change in the regularly reoccurring payments that include:
- Standard payment changes
- Principal adjustments gain/loss
- Defined principal payments
- Principal adjustments
- Non-Loan payments
- Pay Off Remaining Balance
- Pay Off Remaining Interest
NetLoan makes it easy for you to execute the requirements by automating the accounting under each type of payment change. These payments can also be automatically uploaded and applied to your loans with the system generating a new amortization schedule using the auto modifications feature.
Loan Payment Modification Options
- All payment changes/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 need to select the Adjust Loan Terms type to input the desired payment change/addition. Below is a list of the payment 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.
List of Payment Types
| Payment Type | Description | Use Case |
| Standard Payment | Standard payment that is applied to interest first while the remaining payment is applied to principal | Monthly payment changes |
| Adjustment to principal without a payment and is posted to your gain/loss account | Debt forgiveness | |
| Defined Principal Payments | Payment amount that should be applied to principal in addition to paying off the outstanding interest | Want to pay off specific principal amount without needing to calculate outstanding interest |
| Principal Adjustments | Payment or debt issuance that is only applied to the principal balance (does not pay off interest) | Only want to reduce/increase principal balance through payment/additional debt issuance |
| Non-Loan Payments | Adjusts non-loan payment schedule if you are using the Non-Loan payment add-on | Loan-related expense increases or decreases |
| Pays off remaining principal and interest outstanding | Allows you to pay off the remaining loan balance early. | |
| Pay Off Remaining Interest | Pays off interest outstanding | Allows you to pay off the remaining interest amount |
Additional Helpful Articles
| Process | Description | Use Case |
| NetLoan Payment Upload | Adjusting payments via csv upload | Monthly payment changes |
| One-Time Payment | One-time payments | One-time payments |
- If you still have any questions after referencing the articles linked please reach out to the implementation team at support@netgain.tech.