Extend a loan

How do I extend a loan?

There are two different ways to handle an extension in Nordkap, depending on whether the extension involves changes in terms that need to be modified in the position view.

1. Extend without other changes in conditions or only with changes that can be updated in the event view

Go to the loan and click on Extend

Extend without other changes in conditions or only with changes that can be updated in the event view

2. Specify the date you want to extend to

Specify the date you want to extend to

3. Click OK, the end date changes for the loan, and a new period is created in Events

Note that the loan's previous events are saved and cannot be updated; you can extend a loan multiple times.

Click OK, the end date changes for the loan, and a new period is created in Events
If conditions such as the margin have changed, you can easily modify it in the event view after the extension.

Business Date for Loan Extensions

When extending loans, you can now set a business date. The business date indicates from which date the extension should be included in the calculation of key figures in the portfolio report, such as capital commitment, duration, and interest binding period.

If you generate the portfolio report for a reporting date before the business date, the portfolio report considers the extension as if it has not occurred. For reporting dates on or after the business date, the extension is included in the key figures.

Extend with other condition changes

When extending with condition changes in the position view, such as changing the reference rate, etc., create a new loan to avoid regenerating the payment structure.

If there are extensions with condition changes that need to be updated in the position view, for example, changes to the reference rate, etc., you can create a new loan to avoid the risk of regenerating the payment structure.

If you make changes in the position view, all possible adjustments and additions/removals in the event view for the position will be deleted.

If you create a new loan with updated conditions, we recommend that you use naming to link the loans together.

For example, Loan1234 until 2022-04-30, and Loan1234 from 2022-05-01.

You can read more about how to register a loan [here]

Extending a closed loan

If you want to extend a closed loan, you need to first reactivate the loan for the extension to take effect.