Loan ledger Building template basically do the function of making record of the loan and its interest payments on loan in different periods. On loan, we give interest payments additional to the loan payments. There is specifically a stated rate of interest given when the creditor gives the loan to the debtor.
With the stated rate of interest the loan amount will be return to the creditor as loan payment+ Interest payment on loan. The loan payments gradually retire in the different periods, months or may be the years by the debtor. In other words, Loan Ledger building is also called the loan amortization table.
Advantages of using Loan Ledger Building Excel Template:
- This templates helps to track the information
- Can see how much payment retired and how much is left.
- You can also use this anywhere you want
- You can daily add the entries of the loan in the schedule template
- Effective way to record keeping.
Guide to PRACTICE this template:
First of all, you must fill the upper section rows & columns. To Proceed Further you have to fill the upper section. Upper section Includes the following:
- Loan Amount: the amount you have withdrawn.
- Annual Interest Rate: annual % OF INTEREST rate
- Loan length in years: duration of the loan.
- Number of payments in year: how many payments occur in a year.
- Started Date Of loan: The date on which the loan payment withdrawn.
Then we must fill the upper right corner of the template with the data required to continue further:
Scheduled Monthly Payments: of how much amount payments are given after a month that amount must be shown in this column.
Scheduled number of payments:
Actual Number of Payments: Actual Number of payments allowed in a year
Total Early Payments: the payments before Maturity
Total Interest: Interest amount on loan must be mentioned
Total Principal & Interest: Total principal loan payment plus the total interest payment.
After entering the all data above now we must move on to the lower section.
Lower Section of the Template:
In the lowest section, there are shown 10 columns in the template that are Following:
- Payment number (the number of payment as first, second, fifth etc.)
- Date of payment: the date on which payment is made.
- Beginning balance: The total Loan amount balance is the beginning balance for the first payment for the second it would be the total remaining amount of loan.
- Scheduled payment: the payment we enter in the upper section it would be the same for the whole year.
- Extra payment
- Total payment: total payment before interest amount addition it also remains the same whole year.
- Principal amount:
- Ending balance
- Cumulative interest (Optional)
By entering this all the ending balance section automatically generates by the loan ledger building excel template as well as the cumulative interest.