Create a loan interest rate

Loan interest rates are used to calculate interest on loans. They can be created at the top level or the entity level.

Interest for loans is posted during the monthly interest and statement generation process, and when a loan is paid off. For non-revolving (amortized) loans, interest is also posted if the loan is reamortized.

1. Go to Lending Management > Setup and select Add (circle) next to Loan interest rates.
   Alternatively, select Create on the Loan Interest Rates page (Lending Management > Setup > Loan interest rates).
2. In the Name field, enter a unique name for the loan interest rate.
3. In the Type field, specify whether the loan interest rate is revolving (non-amortized) or non-revolving (amortized).
4. In the Loan interest rate schedule section, enter information in the first row in the table:
   • Start date: Enter the effective start date for the loan interest rate.

     The start date can be backdated or future dated, but it cannot be in a closed period or in a period for which interest and statements have been generated.

     To use a loan interest rate for a loan, the loan interest rate's start date must be on or before the loan's origination date.
   • Interest rate (%): Enter the loan interest rate as a percentage with up to 4 decimal places.
   • Notes: You can enter comments or notes.
   • Attachment: You can attach a file related to the loan interest rate.
5. For a revolving (non-amortized) loan, you can add additional rows in the table with different start dates and interest rates.

   The start date in each row must be after the start date in the previous row.

6. Select Save.