ADB Loans

See attached document for more details. 

ADB: Actual Daily Balance. A type of loan where the date of payment received affects the amount of interest paid each period.

1. Earnings schedule of interest set at time of booking
   
2. The date of payment received affects the amount of interest paid each period
   
3. Earnings are adjusted based on when each payment is received 
   
4. Contract re-amortizes as each payment is made 
   

 

The attached document shows how the date a payment is received on an ADB loan affects the principal/interest split.

 

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