Debt Servicing Tool with Moratorium Period Option
Originally published: 04/03/2020 09:19
Last version published: 03/04/2020 09:42
Publication number: ELQ-10071-2
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Debt Servicing Tool with Moratorium Period Option

The tool calculates debt servicing based on term, interest, payment frequency, moratorium.

Description
The tool dynamically calculates the period wise debt servicing based on payment frequency - annual, bi-annual, quarterly or monthly. The tool indicates all the payment dates with principal and interest portion of the debt servicing separately.

There is a provision of Moratorium period at the start of the debt period or in between during the debt period. The interest is payable during the moratorium period(s) and will be not added to the opening balance.

The tool can be made part of a project feasibility financial model or a housing/vehicle loan schedule or any infrastructure finance model.

There is an tab to input basic data and a tab to summarize the payments. The input table is user friendly with clear instruction to enter data in colored cells only. The "loan" tab extends the payment schedule based on loan term and payment frequency. The model is ready for 240 period (12 months X 20 years) but can be copied further down.

The user needs to use only those codes (not case sensitive) provided in a table, for payment frequency. Use of any other code will result in error. The payment dates are based on number of days in the payment period and not on number of months, resulting one day off in some months.

This Best Practice includes
1 Excel file with multiple tabs

Sumit Barua, CFA (ICFAI), PMP offers you this Best Practice for free!

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Further information

The objective is to calculate debt servicing under different options.

All debt and repayment scenarios.

Entry of inaccurate code for payment frequency.

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