What this screen is for
This form sets up a loan so the system can track it and generate its repayment schedule. The loan number is allocated for you. You give the loan a name, choose its type and payment frequency — including a custom frequency in days where the lender uses one — and say how interest is calculated: flat on the original principal, reducing balance, deducted upfront from the principal, or a fixed amount per period. The financial section then takes the principal amount and the remaining terms.
Why it matters
The interest calculation you pick decides every instalment figure afterwards, so it is worth matching to what the lender actually does rather than to what looks closest. The form explains each option as you select it and checks your entries before saving.
What you see on this screen
Loan Details holds Loan Number (filled in for you and not editable), Loan Name (required), Loan Type, Payment Frequency — daily, weekly, bi-weekly, monthly, quarterly, yearly or custom days — and Interest Calculation, one of Flat / Simple Interest, Reducing Balance (EMI), Interest Deducted Upfront or Fixed Amount Per Period. Choosing a custom frequency adds Custom Frequency (Days).
Financial Details takes Principal Amount (required), the tenure in periods, and the instalment amount — replaced by Interest Amount Per Period where interest is a fixed amount. Interest Rate is worked out for you where it can be derived, and Total Interest Amount is shown alongside; both read an em dash rather than zero when they cannot be derived from what you have entered. Processing Fees and, for an upfront-interest loan, Interest Deducted at Source are optional, as is Deduct First EMI from Loan Amount. Panels then show the net amount you actually receive, and a summary of Principal Amount, Total Interest and Final Paying Amount. Start Date and First Payment Date are both required.
Lender Details (required) selects the lender from your vendors. Broker Commission is optional and takes a broker, an amount and the expense account to record it against. Accounting Integration takes the Loan Liability Account, the Interest Expense Account, the Disbursement Account — where the money was received — and optionally a Penalty Expense Account.
Filters and actions
Validation errors are listed at the top of the form before saving, and separately for anything the server refuses. Where the terms you have entered do not repay the principal, a warning says so before the loan is created rather than after.
Related
- All Loans — the loans already recorded and what is outstanding