Quantum IND AS EIR · Ind AS EIR for NBFCs & HFCs

Ind AS effective interest rate reporting for NBFCs and HFCs.

Quantum IND AS EIR applies the Amortized Cost Method to every borrowing on an NBFC or HFC balance sheet — computing EIR, restructuring cash flows and producing audit-ready reports directly from your loan management system.

In productionLive at one of the largest NBFCs in India.
Contract to report
CAPTURELoan details, charges and cash flows pulled from the LMS
ROUTEAutomated workflow moves contracts into the engine
EIREffective interest rate computed per contract
FLOWSDetailed cash flow structure generated per Ind AS
BACKResults written back to the LMS through reverse integration
Measurement
Amortized Cost
LMS Integration
Two Way
Rate Resets
Fully Handled
Quantum IND AS EIR: EIR and amortized cost reporting for NBFCs, HFCs and lending entities

Why it matters

Ind AS changed how NBFC and HFC borrowings must be measured

Borrowings raised by NBFCs and HFCs from banks, other NBFCs and lenders carry transaction costs — typically upfront processing fees — and usually see multiple interest rate changes over their term, as contractual terms track market rates.

Under IGAAP
Notional amount, cost expensed
Loans were carried at their notional amount, with transaction costs expensed directly to the Profit & Loss statement in the period incurred.
Under Ind AS
Amortized cost, EIR-driven
Financial liabilities must be managed using the Amortized Cost Method, with transaction costs absorbed into the effective interest rate and spread across the life of the loan.

Key capabilities

Everything the Ind AS regime demands of an NBFC or HFC finance team

01

Comprehensive Data Capture

Seamless integration with your LMS brings across loan details, charges and contractual cash flows without manual re-entry.

02

Advanced EIR Computation

Effective interest rate derived per contract on the Amortized Cost Method, absorbing upfront transaction costs across the loan term.

03

Cash Flow Structuring

Detailed cash flow structures built per contract in alignment with Ind AS guidelines, ready for review and audit.

04

Automated Contract Workflow

Once loan data is captured, an automated workflow orchestrates the transition of LMS contracts into the computation engine.

05

Reverse Integration

Computed results flow back into the LMS, giving a genuine two-way data path and removing duplicate bookkeeping.

06

Auxiliary Reporting

Supporting reports that extend the analytical reach of finance teams beyond the statutory minimum.

Integration

Connect to your LMS the way that suits you

Quantum IND AS EIR supports multiple LMS data integration methods, so data flows in cleanly whatever an NBFC or HFC already runs — and flows back out again once computed.

Direct database integration with LMSDB
Inbuilt APIsAPI
Secure file transferSFTP
Excel uploadXLSX
Write-back to LMSREVERSE

Special loan scenarios

Built for the loan structures NBFCs and HFCs actually run

01

Monthly Moratorium

Supports moratorium periods where interest is calculated during the deferred payment period, and the cumulative interest is paid along with the first EMI after the moratorium period.

02

Part Payment

Supports partial repayment of outstanding loan amounts and adjustment of future cashflows.

03

Multiple Disbursement

Handles contracts with multiple disbursements made on different dates.

04

Rescheduling / Restructuring

Supports changes in repayment schedules, tenure, EMI amounts, or other contractual terms.

05

Pre-EMI

Handles interest-only payments made before the commencement of regular EMI repayments.

Reporting

A suite of reports your auditors already expect

EIR Report
The calculated effective interest rate for every contract, with the inputs behind it.
EIR Income — Monthly & YTD
Monthly and year-to-date EIR income, giving a running view of financial performance.
Amortized Cost Report
A detailed breakdown of loan costs as they amortize over the life of the borrowing.
Cash Flow Structure Report
Financial data presented in the structure Ind AS standards call for.

Outcomes

Accuracy, transparency and compliance in one pass

Ind AS Compliance
Financial liabilities measured and reported to the standard, with every computation traceable back to contract data.
Reporting Accuracy
Automation removes the spreadsheet drift that creeps into manual EIR workings across hundreds of contracts.
Operational Efficiency
Two-way integration means finance teams close the period from one system, not from reconciliation between two.

Let's talk about your Ind AS reporting

We'd be delighted to discuss how Quantum IND AS EIR can be configured for your NBFC or HFC borrowing book and your existing loan management system.

sales@quantumphinance.com