Setting up an Interest First Loan Template

Setting up an Interest First Loan Template

Describes how to set up an Interest First Loan. For this type of loan, the interest Method changes to arrears on the specified due date and the loan then amortizes over the remaining term.
For Interest First Loans, the AML type must be Interest First and the Interest Method must be Interest only.
  1. Open Loan set up, click options > select Template (loan).
  2. Click New.
  3. Enter a code to identify this loan template and then click Setup Template.
  4. Enter a description of the template.
  5. Enter Interest First in the template description filed.
  6. Select Billing in the Pmt Method field.
  7. Select Interest First in the AML field.
  8. Enter the entire loan term in the Original Term field.
  9. Enter the entire term in the Amortization Term field. This value will be used as the repay period for any ARM calculation of the P&I.
  10. Enter the interest only term in the Int Only Term field. The interest only term is the number of months that the loan will be interest only.

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