Interest adjustments
Learn how to adjust interest rates, apply one-time balance adjustments, and suspend or resume interest accrual.
LoanPro provides flexible tools for managing interest on both installment loan and line of credit accounts. Whether you need to update an account's interest rate, apply a manual dollar adjustment, or temporarily pause interest accrual for hardship or Servicemembers Civil Relief Act (SCRA) compliance, these features give you precise control over your portfolio's revenue calculations.
Interest Rate Change for a loan
An Interest Rate Change applies to a loan account for the remainder of the term—unless modified again.
To change the interest rate on a loan account, open the desired account and navigate to Account Setup > Setup Tools. From the Advance/Credit dropdown menu, select Interest Rate Change, then click the ‘Add’ button on the middle right side of the page.
The following four required fields will appear:
| Field | Description |
|---|---|
| Description | A text field that can be used to describe the reason for changing the interest rate. |
| Interest Rate | A configurable number that dictates how LoanPro’s LMS calculates and accrues revenue on a borrower’s outstanding principal balance. Note: The interest rate frequency (e.g, Annual, Monthly, or Quarterly) will match the original setting found in Account Setup > Setup Terms. |
| Adjustment Method | There are two options for the Adjustment Method:
If you choose a Variable interest rate, five new fields and a ‘Use Setup Values’ button will appear.
|
| Apply Date | The date when the interest rate will change. Interest begins accruing on the principal at the new rate starting on this date. Note: If the account uses the Between Periods setting for the Interest Application method, the change will take effect on the first day of the payment period in which the Apply Date belongs. |
After filling in all four fields, click Save to finish. You will then be returned to the Interest Rate Change page. There, you can see the full history of interest changes, including your new adjustment. You can also edit or delete an adjustment.
Does changing the interest rate affect an account's APR? Yes. Changing a loan’s interest rate alters the account’s APR, but you will not see the APR value update in Account Setup > Setup Terms unless you inactivate the account and then activate it again. However, the calculation effects of the new rate will still take place. We highly recommend checking for absolute consistency between your logged Interest Rate Change and your original account contracts.
Do interest rate changes override roll schedules? Yes, but only for the interest rate. If a roll schedule is active on an account, the Interest Rate Change tool overrides scheduled rate changes. Once the Apply Date is reached, the system calculator will only use the new interest rate, ignoring any past or future rate changes defined in the account's roll schedule. All other roll schedule settings, such as the Payment Amount, remain in effect.
Interest Rate Adjustment for line of credit
An Interest Rate Adjustment changes the amount of interest that a bucket accrues within a line of credit (LOC) account.
To create a new Interest Rate Adjustment on a LOC account, follow the steps below:
1. Open an account, then navigate to Tools > Interest Rate Adjustments.
2. Click the ‘Add Adjustment’ button in the middle right side of the page.
3. Fill in the required fields.
- Info: A text field that can be used to describe the reason for making the adjustment.
- Date: The date when the Interest Rate Adjustment will go into effect. Interest begins accruing on the principal at the new rate starting on this date.
- Bucket: The specific transaction category selected for the Interest Rate Adjustment.
- New Rate: The new interest rate that dictates how LoanPro’s LMS calculates and accrues revenue on the specified bucket’s outstanding principal balance.
4. Click Save to finish.
Interest Adjustment transactions
An Interest Adjustment is a specialized financial tool used to increase or decrease a loan's outstanding interest balance, bypassing the system's automated interest calculation engine.
To make an Interest Adjustment, follow these steps:
1. Open an account, then navigate to Account Setup > Setup Tools.
2. Open the menu next to Advance/Credit and select Interest Adjustment.
3. To create a new adjustment, click the ‘Add’ button in the middle right side of the page.
4. Fill in the required fields:
- Title: A text field that can be used to name/describe the adjustment.
- Type: A dropdown menu that allows you to either increase or decrease the amount of interest due.
- Interest Adjustment: The exact dollar amount of interest you want to add or subtract from the account.
- Which Date Should This Adjustment Apply?: The date when the Interest Adjustment applies to the account. This date must take place after the contract date of the loan.
- Category: A label used to organize, group, and categorize adjustments for reporting and accounting purposes. Categories can be customized in Settings > Loan > Labeling > Interest Adjustment.
5. Click Save to finish.
How interest adjustments impact forecasted payments
API-Only Feature: This configuration flag cannot be modified through the LoanPro UI. It must be managed exclusively through API payloads when creating or updating the transaction.
When posting an Interest Adjustment, you can use the int-adjustment-in-forecasted-pmt calculation flag (i.e., calc flag) to determine if the adjusted manual interest amount is included or excluded from forecasted future payments tracking. This flag only impacts future projections. It does not alter the actual delinquency status of the account.
- When the flag is set to
0, the Interest Adjustment is included in forecasted payment calculations on a borrower’s account. - When the flag is set to
1, the Interest Adjustment is excluded from forecasted payment calculations on a borrower’s account.
Learn more about all calc flags in our API Documentation.
Suspend/resume interest accrual
This tool is only available for activated loan accounts. Line of credit accounts do not have a suspend/resume interest feature. If you would like to stop interest accrual on an account, use the Interest Rate Adjustment feature to set the desired bucket(s) to 0% interest.
You can suspend or resume interest accrual at any point during a loan term in three different locations within the LMS:
- Setup Tools
- Loan Settings
- Automation Engine
Setup Tools
To suspend or resume interest accrual using Setup Tools, follow these steps:
1. Open a loan account, then navigate to Account Setup > Setup Tools.
2. Open the menu next to Advance/Credit and select Suspend/Resume Interest.
3. Click the ‘Add’ button in the middle right side of the page.
4. Choose the *Type (Suspend Interest Accrual or Resume Interest Accrual) and Date for it to take effect.
5. Click Save to finish.
*The Resume Interest Accrual option will only appear if you have already suspended interest accrual.
If you try to set a Suspend Interest date in the past, you will receive a warning prompt. Read through the warning, and if you still wish to use that date to stop interest accrual, click Proceed.
Loan Settings
To suspend or resume interest accrual using Loan Settings, follow these steps:
1. Open a loan account, then navigate to Loan Settings > Settings > Account Settings.
2. Press the pencil icon in the middle right side of the page
3. Add a Repossession Date, Closed Date, or Liquidation Date.
4. When the “Stop Interest Accrual” checkbox appears under the date field you added, click it.
5. Click Save to finish.
You cannot set an interest suspension date if accrual is already suspended or scheduled to be suspended on your selected date. If attempted, an error message will appear. Click ‘Interest Dates’ to the right of the Stop Interest Accrual checkbox to view all active interest suspension dates on an account.
Automation Engine
If you want to suspend or resume interest accrual using the Automation Engine, you can do so at the Tenant or Account level. At the Tenant level, automations can be created, edited, and activated or deactivated. At the Account level, they can only be activated, deactivated, and forced to evaluate.
Tenant level:
1. In the LMS, navigate to Settings > Loan > Automation Engine.
2. Select the ‘Add’ button to create a new automation, or click the pencil icon beside an existing one to edit it.
3. Write or edit the rule, configure its settings, add a Stop Interest Date action, and set the status to Active.
4. Click Save Changes.
Account level:
1. Open an individual loan account and select Automation Engine from the account’s navigation bar.
2. Activate or deactivate the automation using the toggle.
- You can also force the evaluation of an automation—and possibly change the interest accrual on an account—by clicking the vertical ellipses and selecting Force Rule.
After suspending or resuming interest accrual through one of the three available methods, you can view, edit, or delete entries on the Suspend/Resume Interest page.
If I delete a "Suspend Interest" event, will the account retroactively accrue interest for the period it was suspended? Yes. LoanPro calculates interest dynamically based on your ledger's historical timeline. Deleting a Suspend Interest application erases the event entirely, forcing the system to recalculate as if interest was never paused. Conversely, logging a Resume Interest event keeps the historical pause intact and simply restarts accrual from that date forward.