dla-docs

Bank Loans

1. Purpose

The Bank Loans module helps you manage bank loans, including:

• Track loan amount, interest rate, term
• Manage payment schedule
• Calculate interest by period (if applicable)
• Manage late payment penalties
• Early settlement (if needed)

2. When to Use

Use this module when you have:

• Bank loans
• Need to track payment schedule
• Want to calculate interest and penalties
• Need reminders when payment is due

3. Related Screens

• Loan list
• Add new loan (4 steps)
• Edit loan
• Loan details and payment schedule
• Early settlement

4. Main Usage

4.1 Add New Loan (4 Steps)

Step 1: Basic Information

1. Go to Functions → Select Bank Loans
2. Tap the + (FAB) button
3. Fill in information:
   • Bank: Select or create new bank
   • Loan Name: (e.g., “Home Loan”)
   • Loan Amount: Principal amount
   • Disbursement Date: Date money was received
   • Term: Number of years
   • Interest Type: Promotional/floating rate or Fixed rate
4. Tap Next

Step 2: Configure Interest Rate

If selecting “Promotional/Floating Rate”:

• Enable Has Promotional Rate (if applicable)
• Enter Promotional Months and Promotional Rate
• Add floating rate periods:
  • Select year and month range
  • Enter interest rate (%/year)
  • Select Floating or Fixed

If selecting “Fixed Rate”:

• Enter Fixed Rate (%/year)

Tap Next

Step 3: Configure Penalties

1. Enable Has Late Payment Penalty (if applicable)
2. Add penalty periods:
   • Select year and month range
   • Enter Penalty Rate (%/year)
3. Tap Next

Step 4: Confirm and Save

1. Review information:
   • Total amount to pay
   • Expected payment schedule
2. Tap Save

4.2 View Loan Details

1. Go to loan list
2. Tap on a loan
3. View information:
   • Basic information
   • Payment schedule
   • Amount paid / Remaining
   • Interest rate and penalties

4.3 Mark Payment Period as Paid

1. Go to loan details
2. Find payment period due (badge “Not Paid”)
3. Tap Mark as Paid
4. Fill in information:
   • Actual Payment Date: Date paid (default = today)
   • Actual Interest Paid: Actual interest paid (default = planned interest)
   • Note: (optional)
5. View Total Actual Payment automatically calculated (principal + actual interest)
6. Tap Confirm

4.4 Update Current Interest Rate

1. Go to loan details (only shown if currently in floating rate period)
2. Tap Update Current Interest Rate
3. Fill in information:
   • New Interest Rate: New interest rate (%/year)
   • Effective Date: Date to start applying new rate (default = start of current period)
   • Note: (optional)
4. Tap Save
5. Unpaid periods from current period onwards will be updated with new interest rate

4.5 Early Settlement

1. Go to loan details
2. Tap Calculate Settlement Amount
3. Step 1 - Enter Prepayment Information:
   • Select method: Partial Payment or Full Settlement
   • Select prepayment date (default = today)
   • Enter prepayment amount (if partial)
   • View Early Payment Penalty automatically calculated
4. Tap Next
5. Step 2 - Compare Options:
   • View comparison between “No Prepayment” and “Prepayment”
   • View results: Interest savings, time reduction
6. Tap Confirm Prepayment

4.6 Edit Loan

1. Go to loan details
2. Tap Edit (only edit name, note, bank)
3. Edit editable information:
   • Loan Name: Can edit
   • Bank: Can change
   • Note: Can edit
   • Loan Amount, Disbursement Date, Term, Interest Rate: Can only edit if no payments made yet
4. Tap Save

5. Examples & UI Illustrations

LOAN-01: Create New Loan (Home Loan with Promotional Interest Rate)

Goal: Create a new loan to track a home loan, promotional interest rate, and monthly payment schedule.

Steps:

1. Go to Functions → Select Bank Loans
2. Tap the + (FAB) button to add new loan
3. Step 1 - Basic Information:
   • Select bank: Bank of America
   • Enter name: “Home Loan - Downtown Apartment”
   • Enter loan amount: $200,000
   • Select disbursement date: 04/01/2023
   • Enter term: 10 years (auto-calculated = 120 periods)
   • Select notification times: 10:00 and 19:00
   • Select interest type: “Declining Balance”
   • Tap Next
4. Step 2 - Configure Interest Rate:
   • Enable “Has Promotional Interest Period”
   • Enter: First 6 months @ 6.0%/year
   • Add subsequent periods:
     • Year 1 (months 7-12): 9.0%/year, floating
     • Year 2 (months 13-24): 9.5%/year, floating
     • Year 3 onwards: 10.0%/year, floating
   • Tap Next
5. Step 3 - Configure Early Payment Penalty:
   • Enable “Apply Early Payment Penalty”
   • Enter penalties: Years 1-3: 2.0%, Years 4-5: 1.5%, Year 6+: 1.0%
   • Tap Next
6. Step 4 - Confirm:
   • Review summary information
   • Tap Create Loan

Result: Loan created successfully, 120-period payment schedule created automatically, notifications scheduled.

Wireframe - Step 1: Basic Information

┌─────────────────────────────────────────┐
│ <  Add Loan                              │
├─────────────────────────────────────────┤
│ Loan Name *                              │
│ [Home Loan - Downtown Apartment]        │
│                                          │
│ Bank *                                    │
│ [Bank of America ▼] [+ Create New]       │
│                                          │
│ Loan Amount *                            │
│ [$200,000]                               │
│                                          │
│ Disbursement Date *                      │
│ [04/01/2023] [📅]                        │
│                                          │
│ Loan Term (years) *                       │
│ [10] years                               │
│ Hint: App auto-calculates = 120 periods  │
│                                          │
│ Notification Time 1 *                    │
│ [10:00] [🕐]                             │
│                                          │
│ Notification Time 2 *                    │
│ [19:00] [🕐]                             │
│                                          │
│ Interest Type *                          │
│ ● Declining Balance                      │
│ ○ Fixed Rate for Entire Term             │
│                                          │
│ [NEXT] [CANCEL]                          │
└─────────────────────────────────────────┘

---

LOAN-02: View Loan List and Details

Goal: View overview of loans, filter by status, search, and view details of each loan.

Steps:

1. Go to Functions → Select Bank Loans
2. View list screen with filters “Active” (default) and “Completed”
3. Switch between filters to see different overviews
4. Use search bar: Enter “Downtown”
5. Tap on loan to view details
6. View payment schedule with paid periods, current period, and future periods
7. Use search bar in payment schedule: Enter “9/2024”

Result: List displays correctly by filter, loan details show full information and payment schedule.

Wireframe - Loan List

┌─────────────────────────────────────────┐
│ <  Bank Loan Management                 │
├─────────────────────────────────────────┤
│ [Active] [Completed]                    │
│                                          │
│ ┌─────────────────────────────────────┐  │
│ │ Current Balance: $164,500          │  │
│ │ Total Original Loan: $200,000      │  │
│ │ Interest Paid: $1,720              │  │
│ │ Active: 1 loan                     │  │
│ └─────────────────────────────────────┘  │
│                                          │
│ [🔍 Search (loan name, bank)]            │
│                                          │
│ ┌─────────────────────────────────────┐  │
│ │ [ICON] Bank of America  [Active]    │  │
│ │ Home Loan - Downtown Apartment      │  │
│ │ Balance: $164,500                   │  │
│ │ Original: $200,000                 │  │
│ │ Progress: 8 / 120 periods          │  │
│ │ End Date: 04/01/2033               │  │
│ └─────────────────────────────────────┘  │
│                                          │
│                                    [+]   │
└─────────────────────────────────────────┘

Wireframe - Loan Details

┌─────────────────────────────────────────┐
│ <  Loan Details                         │
├─────────────────────────────────────────┤
│ [ICON] Bank of America          [Edit]  │
│ Home Loan - Downtown Apartment           │
│ [Active]                                 │
│                                          │
│ Original Loan: $200,000                 │
│ Current Balance: $164,500               │
│ Periods Paid: 8 / 120                    │
│ Interest Paid: $1,720                    │
│ Current Interest Rate: 9.0%/year        │
│                                          │
│ [Update Interest] [Calculate Settlement]│
│                                          │
│ Payment Schedule                         │
│ [🔍 Search period (e.g., "5/2025")]     │
│                                          │
│ Period 1 – 05/2023 [Paid]                │
│ Total: $2.15k • Principal: $1k • Interest: $1.15k│
│                                          │
│ Period 9 – 01/2024 [Not Paid]            │
│ Principal: $1,000                        │
│ Interest: $1,150                        │
│ Total: $2,150                            │
│ Due Date: 01/15/2024                     │
│ [Mark as Paid]                           │
│                                          │
│ Period 10 – 02/2024 [Not Due]            │
│ Total: $2.15k • Principal: $1k • Interest: $1.15k│
└─────────────────────────────────────────┘

---

LOAN-03: Mark Payment Period as Paid (Record Payment)

Goal: Mark a payment period as “Paid” after making payment to the bank.

Steps:

1. Go to loan details
2. Find current period (Period 9) with badge “Not Paid”
3. Tap Mark as Paid
4. Fill in information:
   • Actual payment date: 01/15/2024 (default = today)
   • Actual interest paid: $1,150 (default = planned interest)
   • Note: (optional)
5. View total actual payment automatically calculated
6. Tap Confirm

Result: Period 9 updated to “Paid”, balance decreases, paid periods increase, current balance decreases.

Wireframe - Mark as Paid Dialog

┌─────────────────────────────────────────┐
│ Mark as Paid                             │
├─────────────────────────────────────────┤
│ Period 9 – 01/2024          [Not Paid]   │
│                                          │
│ Due Date (planned): 01/15/2024          │
│ Principal (fixed): $1,000                │
│                                          │
│ Actual Payment Date *                    │
│ [01/15/2024] [📅]                        │
│                                          │
│ Actual Interest Paid *                   │
│ [$1,150]                                 │
│ Hint: Planned interest: $1,150           │
│                                          │
│ Total Actual Payment =                   │
│   $1,000 (Principal)                    │
│ + $1,150 (Actual Interest)              │
│ ────────────────────────────────        │
│ = $2,150                                 │
│                                          │
│ Note (optional)                          │
│ [Paid $50 less, got interest reduction...]│
│                                          │
│ [CANCEL] [CONFIRM]                       │
└─────────────────────────────────────────┘

---

LOAN-04: Update Current Interest Rate (When Bank Adjusts Floating Rate)

Goal: Update new interest rate when bank announces floating rate adjustment.

Steps:

1. Go to loan details
2. View “Current Interest Rate: 9.0%/year”
3. Tap Update Current Interest Rate (only shown if currently in floating rate period)
4. Fill in information:
   • New interest rate: 10.5%/year
   • Effective date: 01/15/2024 (default = start of current period)
   • Note: “Bank adjusted interest rate per new decision”
5. Tap Save

Result: Current interest rate updated, unpaid periods from current period onwards updated with new interest rate.

Wireframe - Update Interest Rate Dialog

┌─────────────────────────────────────────┐
│ Update Current Interest Rate             │
├─────────────────────────────────────────┤
│ [ICON] Bank of America                   │
│ Loan Name: Home Loan - Downtown Apartment│
│ Current Period: Period 9 – 01/2024       │
│ Status: [Active]                         │
│ Period: Floating (after promotional)     │
│                                          │
│ Current Interest Rate (applying):       │
│ [9.0] %/year (readonly)                  │
│                                          │
│ New Interest Rate (%/year) *              │
│ [10.5] %/year                            │
│                                          │
│ Effective Date *                         │
│ [01/15/2024] [📅]                        │
│                                          │
│ Note (optional)                          │
│ [Bank adjusted interest rate...]         │
│                                          │
│ • New interest rate will be applied to   │
│   periods from Current Period onwards.   │
│ • Previously paid periods are unchanged. │
│                                          │
│ [CANCEL] [SAVE]                          │
└─────────────────────────────────────────┘

---

LOAN-05: Early Settlement (Partial Payment to Reduce Interest)

Goal: Settle part of the loan early to reduce total interest payable and shorten loan term.

Steps:

1. Go to loan details
2. Tap Calculate Settlement Amount
3. Step 1 - Enter Prepayment Information:
   • Select method: “Partial Payment”
   • Select prepayment date: 01/15/2024
   • Enter prepayment amount: $80,000
   • View penalty automatically calculated: $1,600 (2.0%)
   • Tap Next
4. Step 2 - Compare Options:
   • View comparison between “No Prepayment” and “Prepayment $80,000”
   • View results: Save $30,000 interest, reduce 40 periods
   • Tap Confirm Prepayment

Result: Balance decreases, payment schedule recalculated, number of periods decreases, end date earlier.

Wireframe - Step 1: Enter Prepayment Information

┌─────────────────────────────────────────┐
│ <  Early Settlement                      │
├─────────────────────────────────────────┤
│ [ICON] Bank of America                   │
│ Loan Name: Home Loan - Downtown Apartment│
│ Current Balance: $200,000                │
│ Current Period: Period 9 – 01/2024       │
│                                          │
│ How do you want to settle?              │
│ ● Partial Payment                        │
│ ○ Full Settlement                        │
│                                          │
│ Prepayment Date *                        │
│ [01/15/2024] [📅]                        │
│                                          │
│ Prepayment Amount *                      │
│ [$80,000]                                │
│                                          │
│ Penalty Rate Applied: 2.0%                │
│ Penalty: $1,600                          │
│                                          │
│ [NEXT]                                   │
└─────────────────────────────────────────┘

Wireframe - Step 2: Compare Options

┌─────────────────────────────────────────┐
│ <  Compare Options                       │
├─────────────────────────────────────────┤
│ OPTION A: No Prepayment                 │
│ ────────────────────────────────────────│
│ Total Interest Paid to Date:            │
│   $52,000                               │
│ Total Interest Remaining: $52,000       │
│ Periods Remaining: 112 periods          │
│ End Date: 04/01/2033                    │
│                                          │
│ OPTION B: Prepayment $80,000            │
│ ────────────────────────────────────────│
│ Early Payment Penalty: $1,600           │
│ Total Interest Paid to Date:            │
│   $53,600                               │
│ Total Interest Remaining: $22,000       │
│ Periods Remaining: 72 periods           │
│ End Date: 04/01/2029                    │
│                                          │
│ COMPARISON RESULT:                       │
│ • Interest Savings: $30,000             │
│ • Time Reduction: 40 periods (~3.5 years)│
│                                          │
│ [CONFIRM PREPAYMENT]                     │
└─────────────────────────────────────────┘

---

LOAN-06: Edit Loan (Edit Basic Information)

Goal: Edit basic information of loan (name, bank, note) after starting payments.

Steps:

1. Go to loan details
2. Tap Edit (only edit name, note, bank)
3. Edit:
   • Loan Name: “Home Loan - Downtown Apartment - Unit A1-1201”
   • (Optional) Change bank: Chase Bank
   • Note: “Transferred to new bank”
4. View disabled fields: Loan Amount, Disbursement Date, Term, Interest Rate
5. Tap Save

Result: Basic information updated, other information unchanged.

Note: If loan has no payments made yet, can edit all information (amount, term, interest configuration).

6. Logic & Rules

6.1 Promotional/Floating Rate

• Can have promotional period (lower interest rate)
• After promotional period, interest rate floats by period
• Each period can be Floating (market-based) or Fixed

6.2 Late Payment Penalties

• Penalties calculated by %/year
• Can configure differently for each period
• Penalties only apply when payment is late

6.3 Payment Schedule

• App automatically creates payment schedule based on:
  • Loan amount
  • Interest rate
  • Term
• Each payment period includes: Principal + Interest

6.4 Early Settlement

• Calculate remaining amount (principal + interest + penalties if any)
• After settlement, loan will change to “Completed” status

6.5 Notifications

• App sends reminder notification when payment is due
• Notification time can be configured for each loan (notificationTime1, notificationTime2, default 10:00 and 19:00)

7. Important Notes

• Complex Interest Rates: This module supports interest rates that change by period, requires careful configuration
• Cannot delete when payment schedule exists: If payment schedule exists, you can only settle, cannot delete
• Early Settlement: May require additional penalty fees, depends on bank policy
• Payment Schedule: Payment schedule is calculated automatically, you cannot edit directly