With LoanAlert v1.1 it is now possible to manage interest-only loans.

The interest only feature has been specifically designed to cater to small to medium size lenders who may not have direct access to deposit access.

If your operation collects payments via direct debit or require the borrower to make regular payments via a payment book. Then it is highly likely any loan you manage which is paid monthly is calculated so that the loan payments are the same each month. Regardless of how many days in each calendar month.

In LoanAlert this is known as a fixed payment interest only loan. The alternative is a variable payment interest only loan. The variable payment interest only loans calculate payments based on the actual number of days in a month which can vary between 28 to 31 days. Such loans are suitable to lenders who are able to deduct funds directly from deposit accounts on the day an interest charge is due, such as first tier lenders.

Both systems calculate interest daily and compound monthly.

The key benefit of using LoanAlert to manage your fixed payment interest only loans is that LoanAlert will accurately track any payment which is over or falls short of the fixed payment amount.

Which means any overpayments will correctly adjust the interest charge down (calculated daily, compounded monthly). This ensures your loans are charging interest fairly. A big benefit for loans which must comply with the Australian Uniform Consumer Credit Credit Code.

And at the same time, loan arrears are also tracked. This ensures the correct interest charges are applied in the event the loan balance increases above the initial drawn amount. A safe guard for your lending revenue.

Only LoanAlert gives you this level of protection.