Create a Standard Loan

Reference Code

Unique reference of the transaction. Identifies the transaction in the portfolio.

Note: The reference must be unique among all the entities managed in the account.

External Reference Code

Used by external systems to identify the transaction. Used when transactions are imported from or exported to another system.

Principal

Principal amount of the loan.

Currency

Currency of the principal amount.

Borrower

Borrowing entity in the system. Only entities in the current organization can be managed by the current user.

Lender

Can be either internal (an entity in the system) or external (a commercial bank).

Trade Date

Date at which the transaction has been traded. From that date, the system takes the transaction into account as an item of the portfolio.

Start Date

Unadjusted start date of the transaction.

Note: The start date must be later or equal to the trade date.

End Date

Unadjusted end date of the transaction.

Note: The end date must be later than the start date.

First Roll Date

Unadjusted date of the first payment (useful when the first period is a long or short stub).

Note: The first roll date must be later than the start date and earlier than the end date.

Availability Period

Indicates if the loan includes drawings and amortization:

• No: The full principal is drawn at the start of the transaction.
• Yes, with amortization: The principal is drawn over a period of time (multiple drawdown dates) and the principal is amortizing.
• Yes, without amortization: The principal is drawn over a period of time (multiple drawdown dates).

End of Availability Period

Indicates the last date at which drawings can be made.

Note: This field displays if the availability period is enabled. If the availability period is enabled with no amortization, the end of availability period must be earlier than the end date.

Amortization Type

Amortization mode.

If the amortization type selected is Bullet, Custom or Extended Constant Annuity, it will be possible to add contractual extensions after the transaction creation. For further information, see Extend a Standard Loan, a Cash Facility, a Credit Facility or a Credit Facility Drawing.

Consolidation Start Date

Indicates the date at which amortization can start.

Note: This field is only available for drawings with amortization.

Extended Constant Annuity Date

Indicates the date until which constant annuities will be computed (a transaction with a maturity date corresponding to the extended constant annuity date would amortize to zero at this date).

Note: This field displays if extended constant annuities are selected as amortization type.

Index

Name of the index used to calculate the rate value, e.g. FIXED for a fixed rate.

Only a fixed index can be selected if constant annuities or extended constant annuities are defined as the amortization type.

Note: The field beside displays depending on the index selected.

Interest Rate

Fixed rate value in percentage.

Note: This field displays depending on the index selected.

Initial Interest Rate

Initial rate of the custom index.

Note: This field displays depending on the index selected.

Spread

Spread (or margin) value in percentage.

Note: This field displays depending on the index selected.

Day Count Convention

Used to compute the day fraction of an interest accrual period.

Capitalized Interest

Defines whether the interest amount should be paid at the payment date, or added to the principal (and included into the outstanding balance for the following periods).

In Advance Interest Payment

Defines whether the interest amount should be paid at the start of the period.

Equivalent Compounding Rate

Enables the computation of the equivalent compounding rate.

This rate is equivalent to the interest rate but paid with a different frequency, with compound interests.

The effective rate is then the yearly rate which corresponds to the interest rate divided by the selected frequency, and compound at the selected frequency. As an example, for an interest rate of 2% and a bi-annual capitalization frequency (ie. twice a year), the effective rate is the rate equivalent to compounding at a 1% interest rate over 2 periods of 6 months, which is 2.2121%.

Furthermore, a period equivalent rate is computed in relation to the payment frequency of the transaction. This equivalent rate is equivalent to the effective rate if compound at the payment frequency. Each payment is computed with this equivalent rate multiplied by the payment frequency and using the day count convention. For example, if the principal is 1,000,000 CAD, the day count convention is Actual/360 and the equivalent rate is 0.20 % for 12 payments per year (monthly payments), then the payment for a period of 28 days would be: 1M x (12 x 0.20%) x 28/360 = 1866.67 CAD.

Note: This field displays if a fixed index is selected.

Annual Capitalization Frequency

Number of capitalizations in the year.

Note: This field displays if the equivalent compounding rate is selected.

Frequency

Frequency of the payments.

Note: The available values correspond to a fraction of the annual capitalization frequency, if selected.

Interest Calculation Adjustment

Adjustment mode for the interest calculation. The nominal start and end dates of the accrual period will be adjusted accordingly before computing the interest amount.

Payment Date Adjustment

Adjustment mode for the payment date.

Last Stub Period

Defines whether the last period should be a short or long stub when it does not match the selected frequency:

• Short Stub: The payment date just before the end date should be respected.
• Long Stub: The payment date just before the end date is replaced with the payment occurring at the end date.

Note: If neither stub is selected, the short stub applies by default.