Payment Table Setup

Training Outline

Definition:

Loan payment tables can be setup for variable rate loans to reference on how to calculate their payments.

Payment table codes are set on the Account Type Maintenance (See ACCOUNT TYPE MAINTENANCE).

Roles:

Navigations

Loan Payment Table

Permissions

Reports Available:

Procedure:

• Navigation: F3- Loan Table Maintenance: Loan Payment Table
  

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Payment Table Setup

• Select NEW to establish a new payment table
  

15. Copy is available if a payment table is saved in the system.
    

Rates and Repayment Schedule

• Payment Type: Short name for the Payment Table. This will be what is stored on the loan. You can create any table you would like. You may name the type anything up to four characters.
  

• Description: The full name of the Payment Table. You can have up to a 45 character description.
  

• Subtract Term: Should this be checked, when the payment is recalculated the system will take into account what the used term is and subtract it from what is listed in the ‘Term Table Term’ IF the ‘From Fixed’ field is left blank.
  

• If the ‘From Fixed’ field is populated the system will subtract term used from the ‘From Fixed’ field amount. Using the ‘From Fixed’ value will force the loan to have a max term of ‘From Fixed’. It will ensure that the loan pays off within this term regardless of the values in the ‘Term Table’.
  

• From Fixed: The max amount of months for the loan term.
  

• Update On Draw: When a Member makes a ‘Draw’ on the loan the payment will then be recalculated. It will NOT calculate when the variable rates change.
  

Term Table

Should the ‘From Fixed’ field be populated then the result will be compared to the Term Table to find what ‘Term’ the payment is to be calculated at.

Example:

Term Used is 10 minus ‘From Fixed’ is 230

Since the balance of the loan is $20,000 then the term that the payment will be recalculated to is for a 180 Months. The reasoning is because the system will use the lesser of the Term options.

Alternatively if the used term is 100 minus ‘From Fixed’, you will have 140.

Since the balance of the loan is $20,000 then the term that the payment will be recalculated to is for 140 Months.

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Payment Table Setup

Difference between Variable Payment Loans and Loans using a Payment Table

PAYMENT TABLE LOANS DO NOT CALCULATE MONTHLY! THEY ONLY CALCULATE ON DRAW OR RATE CHANGE

Payment Table Loans:

There are two ways for a Payment Table Loan to have the payment change. First, will be if rate index Changes within your system. At that time all loans using a Payment Table will have the payment updated, if the ‘Update On Draw’ is not checked. The second is if the ‘Update On Draw’ checkbox is checked and this means that the payment will ONLY change when the Member makes a Draw on their loan.

Variable Payment Loans: Variable payment loans are recalculated at the end of every month.

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