OneOnOne Split Loan Module

Evaluation Procedure

We suggest you print this procedure and mark off each step as you complete it.
It has been assumed that you are already a OneOnOne user, or have at least completed the evaluation procedure for OneOnOne.

Is the module installed ?

When any of the optional modules is installed the Mode command will appear on the main menu bar. Select Mode and if you see the option Split Loan, then you have the module installed.

Background:

A Split Loan is a loan product which offers two loan accounts, each account having different features. The loan amount is split between the two account types. An example is

Borrow $ 100,000 total, $ 60,000 at 10 % fixed for 3 years and $ 40,000 at the variable rate of 8 %.

This is a 60-40 split with the two account types being Fixed Interest and Variable Interest.

The split loan module compares one split loan to another split loan, or a split loan to a non-split loan.

Thus two options, A & B are compared. The balance of a split loan option is simply the addition of the balances of each loan account at any time.

So, we set up the four loans in the file.The program calculates Option A = Loan 1 + Loan 2, Option B = Loan 3 + Loan 4.

Then we compare Option A to Option B.

Evaluation:

You can get a very quick appreciation of the capabilities of the Consolidation Module by viewing the example file provided and following the instructions below :-

1) Use File | Open/New
2) select the file Examples\SplitLoan\Fixed&Var_v_Fixed&Var.1v1.
This file compares split where each loan option has fixed and variable interest components.

3) On opening the file you will see a screen with 4 loans. There are also two options indicated - Option A is Loan 1 + Loan 2. Option B is Loan 3 + Loan 4. Note: If you can't see this then check the file name at the top left of the screen. If the file is correct you have the wrong mode selected. From the main menu select Mode | Split Loan

Pushing the buttons next to each loan description will bring on screen the Loan Calculator. The loans can be set up and / or modified as per the instructions in the OneOnOne Evaluation Procedure.

4) Open loans 1 to 4 and note the events which characterise each loan. Note that for the fixed portion the loan reverts to the variable rate once the fixed term is over.

5) Back at the main screen, Press the compare button. Notice the comparison is between :-

Option A - the sum of loans 1 + 2
and
Option B - the sum of loans 3 + 4

Thank you for your interest in the OneOnOne Split Loan. If you have any queries please call 03 9482 2296.