Beruflich Dokumente
Kultur Dokumente
To
AILBANKS
Subiea
Relative to the implementation of Circular No. 730 dated 20 July 2011 on updated
rules in implementing the Truth in Lending Act to enhance loan transaction transparency,
Effective Interest Rate (ElR) calculation models illustrative of common loan features are
presented herewith (Annexes A-E) for guidance. lt is understood, however, that an EIR
calculation model, founded on established principles of discounted cash flow analysis, for
a loan should be based on the actual features thereof. A bank shall be solely responsible
for the propriety and accuracy of its EIR calculation model. However, for purposes of
determining compliance with Circular No. 730, the BSP's determination of the
reasonableness and accuracy of an EIR calculation model prevails.
,ffi{
!{uty zott
Att.: A/S
ANNEXA
lllustration 1
EFFECTIVE ITTTEREST CALCULANON MODEL
FIXED EQUAT AMORNZANON CASE
AB
Loan Amount
Monthly Installment
3.OO%
12
4
5
120,000.00
11,001.50
tSWa
Installment
Gross
Period
Loan
Prlncioal
Intercst
O$er
Charges
ols
Cash
f,ows
Balance
120,000.00
10
11
L2
120,000.00
3,600.00
116,400.00
(11,001.50)
120,000.00
(11,001.60)
101,458.79
(11,001.60)
91,979.06
{11,001.60)
(11,001.60)
72,590.9L
(11,001.60)
62,679.77
(11,m1.50)
52,676.74
15
t7
9,201.60 1,900.00
9,339.62 1,561.99
9,479.72 1,521.99
9,521.91 7,379.69
9,765.24 1,235.35
9,972.74 1,089.95
10,051.43 940-77
18
74,212.35
789.25
(11,001.60)
42,404.39
19
10,365.53
536.O7
(11,001.501
32,038.86
13
t4
t5
4
5
L7O,798.4O
82,357.!5
z0
10
tt
to,521.O2
2t
480.58
(11,001.60)
27,517.85
10,678.83
322.77
22
23
t2
10,839.01
(1L,001.60)
10,839.01
162.59
(11,001.60)
TOTAL
120,000.00 72,oL9.79
Monthly Installment
3,500.00
PMT(C3,C5,-Cl)'r-1
11,001.60
(1+lRR(F10:F22!,!.,, - L
r@
IRR(FIO:F2Z)
l-Erml
tRR
Funaion)
ANNEX B
lllustration 2
EFFECTIVE INTEREST CATCUTATION MODET
FIXED PRINCIPAL AMORTIZANON CASE
AB
1
2
3
4
5
Loan Amount
120,000.00
Monthly Installment
ContractualRate(Monthly)
OtherCharges
No. of Monthly lnstallment
10,ooo.oo
7.5W6
3.0096
72
7
8
lnstallment
Gross
Perlod
loan
(}ther
Prlncloal
Interst
Charses
o/s
Cash
florrs
120,000.00
120,000.00
10
11
10,000.00
1,800.00
t2
10,000.00
1,650.00
3,500.00 116,400.00
120,000.00
(11,800.00)
(11,550.00)
110,000.00
90,000.00
13
10,000.00
1,500.00
t4
10,000.00
1,350.00
15
10,000.00
1,200.00
16
10,000.00
1,050.00
t7
10,000.m
900.00
18
7
8
10,000.00
750.00
19
10,000.00
600.00
20
21
22
10
10,000.00
450.00
11
10,000.00
300.00
{11,500.00)
(11,350.00)
(11,200.00)
{11,050.00}
(10,900.00)
(10,750.00)
(10,600.00)
(10,450.00)
(10,300.00)
L2
10,000.00
150.00
(10,150.00)
120,000.00
11,700.00
z3
TOTAT
Balance
100,000.00
80,000.00
70,00o.0o
60,000.00
50,000.m
40,0o0.m
30,000.00
20,000.00
10,000.00
3,600.00
(1+lRR(F10:F22ll" - 7
l_Er%l
IRR(F10:F221
r----rrfi
IRR
Fundion)
ANNEX C
lllustration 3
EFFECTIVE INTEREST CALCUTATION MODET
c
1
Loan Amount
120,000.00
Monthly Installment
Contractual Rate (Monthly)
Other Charges
Installment
Period
11,001.60
I.50o/o
3.00%
Gross
Loan
ols
Other
Princioal
lnterest
Charges
Cash flows
120,000.00
Balance
120,000.00
10
11
L2
13
9,201.60
1,800.00
(11,001.50)
110,798.40
14
9,339.62
1,661.99
(11,001.60)
15
9,479.72
1,521.88
(11,001.60)
lot,458.79
9t,979.06
16
9,62L.9I
1,379.59
(11,001.60)
82,357.L5
T7
9,766.24
1,235.35
(11,001.60)
72,59O.9L
18
9,9L2.74
1,088.95
(11,001.60)
19
10,061.43
94c.L7
(11,001.60)
52,678.t7
52,6t6.74
1o,2L2.35
789.25
(11,001.60)
42,Q94.39
32,039.96
3,600.00
116,400.00
120,000.00
120,000.00
120,000.00
20
10
2l
11
10,365.53
636.07
(11,001.60)
22
L2
70,521.02
0.58
(11,001.60)
21,517.85
23
13
10,678.83
322,77
(11,001.60)
10,839.01
24
t4
25
TOTAL
10,839.01
162.59
98,482.15
11,533.84
Monthly Installment
(11,001.60)
(o.oo)
3,600.00
PMT(C3,C5,-Cl)*-1
11,001.60
(1+lRR(F10:F221112 - L
19.
IRR
Function)
IRR(F10:F24)
1.5
ANNEX D
lllustratlon 4
EFFECTIVE INTEREST CATCUTATION MODET
CASE: PERIODIC INTEREST PAYM Et{T, BAU.OON PAYMENT AT
1
2
3
4
5
AB
MATRIW
CD
Loan Amount
120,000.00
Monthly Installment
Contractual Rate (Monthly)
OtherCharges
12
7
8
Installment
Gross
Perlod
Loan
Otlrer
Prlncioal
lnterest
Charees
o/s
Cashflows
Balance
120,000.00
120,000.00
l0
t1
t2
1,800.00
13
3,600.00
1,800.00
116,400.00 120,000.00
(1,800.00) 120,000.00
(1,800.00) 120 000.00
(1,800.00) 120,000.00
t4
1,800.00
1,800.00
15
1,800.00
16
1,800.00
t7
1,800.00
18
1,80O.00
19
(1,800.00) 120,000.00
(1,800.00) 120,000.00
(1,800.00) 120,0m.00
t1,8{D.00} 120,m0.00
1,800.00
(1,80O.0O) 120,000.00
20
10
2l
1,800.00
11
1,800.00
(1,800.00)
(1,800.00)
22
23
t2
TOTAL
120,000.00
1,800.00
120,000.00
21,500.00
Etrcel IRR
IRR
Funaion)
120,000.00
120,000.00
(121,800.00)
3,600.00
(1+lRR(F10:F22ll', - 7
l-IgsEml
|RR(F10:F22)
Funaion)
(1,80O.O0) 120,000.00
1.1816l
ANNEX E
lllustration 5
EFFECNVE I|IEREST
CAtCt'tANOil MODET
I
2
3
4
5
5
7
E
9
Loan Amount
10,000.00
Weekly Installment
Contractual Rate (Monthly)
788.00
l.sWo
0.3s%
3-OWa
Term (Week)
13
Period/Year
52
Installment
Gross
Period
Loan
t0
11
0
L2
1
132
143
154
165
t76
187
198
209
21 10
22 tt
2t
t2
24 13
25
Princloal
Interest
Other
Char es
o/s
Cash flows
Balance
10,000.00
10,000.00
300.00
TOTAL
753.38
34.62
755.99
32.01
9,700,00
(788.00)
10,000.00
8,490.63
9,246.62
758.61
29.39
{788.00)
(788.o0)
767-2?
26.76
(788.00)
5,97A.78
763.87
24.73
(788.O0)
766.51
2t-49
(788.o0)
6,206.91
5,444.40
7,732.02
769.17
18.83
(788.oo)
4,671.24
771,a3
16.17
774.50
13.50
{788.00}
(788.00)
3,124.91
777.18
10.82
(788.00)
2,347.72
779.87
8.13
(788.00)
1,557.85
782.57
s.43
(788.00)
78s.28
2.72
243.98
(788.00)
10,000.00
Weekly Installment
3,899.41
785.28
(0.00)
300.00
(1+lRR(F10:F24))t'- 1
f'--o4G%l
(1+|RR(F10;F24))r3f -
l--TItE