An annual loan statement is a comprehensive summary provided by Kravings once a year, detailing the status and activity of a borrower's loan account over the past 12 months. This statement serves as a formal record of the loan’s progress, helping borrowers keep track of their repayment status and any changes in loan terms or balances.
Key information included in an annual loan statement typically includes:
Starting and Ending Balances: The loan balance at the beginning of the year and the remaining balance at the end of the year.
Interest Charged: The total interest accrued during the year, helping borrowers see how much of their payments went toward interest versus principal.
Payments Made: A detailed list of payments made throughout the year, showing how each payment was applied to principal, interest, and any fees.
Fees and Charges: Any fees added to the loan account over the year, such as late fees, service charges, or other administrative costs.
Repayment Schedule Update: Any changes in the repayment schedule or terms, if applicable.
Outstanding Balance: The remaining loan amount as of the statement’s issuance date.
Other Important Information: Any updates or notices related to the loan, such as changes in interest rates or other terms that affect the loan agreement.
An annual loan statement helps borrowers track their progress on repaying the loan, verify the accuracy of payments and interest charges, and prepare for tax reporting, especially for tax-deductible interest. It also serves as an official record that borrowers can refer to in case of discrepancies or questions about their loan.