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Help Center›Advanced Loan Topics›Non-Accrual Setup Guide
Table of contents
  • 1. Temporary Non-Accrual (Grace Period)
  • Step-by-Step
  • 2. Defaulted / Impaired Loan (Stop Accruing Interest)
  • 3. Non-Accrual – Yield / OID Handling
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    Non-Accrual Setup Guide

    Last updated January 21, 2026

    This guide explains how to configure non-accrual periods in Hypercore, depending on your use case:

    • Temporary non-accrual (grace period)
    • Defaulted or impaired loans (stop interest accrual from a specific date)
    • Yield / OID non-accrual handling

    1. Temporary Non-Accrual (Grace Period)

    Use this option when you want to temporarily stop principal and/or interest accrual for a defined period.

    Step-by-Step

    Navigate to Loan Terms

    1. Go to the Loan Page
    2. Click the Terms tab
    3. Click ➕ Add Terms

    Set Up Grace Period

    1. Set the Terms Update Date to the date the non-accrual should begin
    2. Locate Principal Grace Period:
    1. Enter the start and end dates
    1. For interest non-accrual, locate Interest Grace Period
    1. Enter the relevant dates

    Save & Validate

    1. Click Save
    2. Review the Loan Schedule to confirm accrual is paused during the selected period
    💡

    Important Notes: During a grace period no principal accrues and no interest accrues. After the grace period ends, accrual resumes automatically based on the original terms.

    2. Defaulted / Impaired Loan (Stop Accruing Interest)

    Use this method when a loan is in default or impairment and should stop accruing interest permanently (or until further notice).

    Step-by-Step

    Navigate to Rate Updates

    1. Go to the Loan Page
    2. Open the Terms panel (right side)
    3. Click Update Loan Terms → Rates Update (or “New Loan Terms” if required)

    Configure 0% Rate

    1. Set the Effective Date for when non-accrual should begin
    2. In the Rate Updates grid, set:
    1. Interest Rate = 0%
    2. If applicable, adjust:
    1. Margin
    1. Min Rate
    1. Max Rate (to ensure they do not override the 0% rate)
  • Save & Validate
    1. Click Save
    2. Review the Schedule to confirm interest stops accruing from that date

    Optional: You may also mark the loan as Defaulted using loan status flags for reporting and tracking purposes.

    💡

    Important Notes: This approach A. preserves historical interest rates B. keeps a full audit trail C. Is fully reversible with a future rate update

    3. Non-Accrual – Yield / OID Handling

    If the loan includes OID / EIR (Effective Interest Rate):

    Required Configuration:

    Make sure to also define the non-accrual period inside the OID Settings of the same loan terms update.

    Otherwise:

    The system may stop cash interest, but still continue yield amortization in reports

    This ensure both cash interest and yield recognition are aligned.

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