Loan Schedule

Loan Schedule/EMI Schedule/Amort Schedule

In this article, we would look into various aspects of a loan schedule. Loan schedule is a part of loan disbursement documents that is handed over to customer at the time of loan disbursement. It mentions various details related to a loan repayment such as emi, date of repayment, rate of interest, different charges, principal and interest components etc.

It is mandatory for  a financial institutions to provide  loan repayment schedule to its customers against every loan account. Let us look at the various important components of a loan schedule one by one-

Sanction Limit – Sanction limit is the limit that has been sanctioned for a particular customer. For e.g if a firm has been sanctioned a working capital limit of Rs 2 Cr then he can use funds over and above that

Disbursement amount – Disbursement amount is the amount of loan disbursed to a customer’s account. Disbursement amount is always lower than sanction limit

Disbursement date – Disbursement date is the date on which loan is disbursed to customer’s account.

Interest start date – It is the date on which interest is levied by a financial institution against a loan. Usually, it is the day on which loan is disbursed if any moratorium is not availed by a customer

First payment date – It is the date on which first payment is received from a customer

Interest rate – It is the rate at which loan is structured for emi payment. interest rate is charged against capital given for a specific period of time

Tenor – Tenor is the time limit for a loan duration

Fees – Every institution charges a fee for providing adebt to its customer. it is charged as the percentage amount of a final loan disbursed

Stamp duty – Stamp duty is the charges paid by a financial institution for procuring various stamp papers for loan documentation

Advance interest – It is the amount that is deducted from a final loan amount for paying initial interest for a loan

Sample EMI schedule

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