Question
Instead of 1 loan been disbursed, assumed a portfolio of loans been disbursed with % distribution of tenure (on amount), interest rate and overall disbursal
Instead of 1 loan been disbursed, assumed a portfolio of loans been disbursed with % distribution of tenure (on amount), interest rate and overall disbursal as follows : | ||||
Overall portfolio disbursal | 1,00,000 | |||
Annualized Interest rate | 15% | |||
Monthly interest rate | 1.25% | |||
Assume all loans are disbursed at the above interest rate only, interest is applied monthly on declining balance method (same as in question 1) | ||||
Tenure % | Distribution | |||
1 | 5.00% | |||
2 | 5.00% | |||
3 | 10.00% | |||
4 | 2.00% | |||
5 | 5.00% | |||
6 | 25.00% | |||
7 | 2.00% | |||
8 | 2.00% | |||
9 | 15.00% | |||
10 | 2.00% | |||
11 | 2.00% | |||
12 | 25.00% | |||
1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | |
Foreclosure Curve - POS | 4.44% | 2.58% | 2.47% | 2.35% | 2.32% | 2.36% | 2.17% | 2.22% | 2.26% | 2.17% | 2.33% | 2.72% |
Suppose at the start of period 2 balance outstanding of the portfolio is 100, then apart from the normal EMI paydown, additional 2.58 will be paid as foreclosure.
Similarly if at the start of period 5, balance outstanding of the portfolio is 50, then apart from the normal EMI paydown, additional 1.16 (i.e 2.32% * 50) will be paid as foreclosure
Answer the following question (complete the empty table)
1 what will be the balance outstanding of the whole portfolio at the end of every month
2 What is the payment received every month
3 What is the principal paid and interest paid every month
Balance outstanding at start of period 100000, Payment received (EMI amount) ,Principal paid, Interest paid, Balance outstanding at end of period
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