Loan Amortization and Cash Flow Analysis Tool.txt

Project Title: Loan Amortization and Cash Flow Analysis Tool

Objective:  
Developed a Python-based tool to automate the calculation of amortization schedules, incorporating fixed monthly payments, prepayments, and interest, while providing consolidated cash flow summaries for a portfolio of loans.

Approach:  
- Data Preprocessing: 
   - Utilized Pandas to read and process loan data from Excel, including dynamic handling of loan-specific parameters like interest rates, terms, and Conditional Prepayment Rates (CPRs).
   - Applied robust data validation techniques to standardize date formats and ensure accuracy in calculations.
  
- Algorithm Development:  
   - Designed custom functions to compute monthly payments using amortization formulas and calculate prepayments based on CPR.
   - Developed an iterative logic to generate amortization schedules for each loan, tracking metrics like principal, interest, and prepayment over time.

- Data Aggregation:  
   - Leveraged Pandas GroupBy operations to summarize schedules by date and loan, creating consolidated views of total payments, interest, and balances.
   - Automated sorting and formatting to ensure chronological order and logical grouping.

- Output Generation:  
   - Exported results to both CSV and Excel formats using OpenPyXL for integration with existing reporting workflows.
   - Created detailed summaries for individual loans and portfolio-wide consolidated schedules.

Relevant Skills:  
- Programming: Proficient in Python, with a focus on data manipulation (Pandas) and numerical calculations (NumPy).  
- Financial Modeling: Strong understanding of loan amortization, prepayment modeling, and cash flow analysis.  
- Data Handling: Experience in data validation, transformation, and exporting outputs to diverse formats.  
- Automation: Streamlined repetitive tasks for efficiency, ensuring scalability for larger loan portfolios.

Outcome:  
The tool significantly reduced manual effort and improved accuracy in loan reporting, delivering actionable insights for stakeholders to better manage and forecast portfolio cash flows.