We generally recommend tracking conversion loans by manually adding batches on the transaction screen. ftwilliam.com would not suggest setting the loan up in the loan module, as it is very difficult to recreate a prior record keeper's amortization schedule.
To add conversion loan balances, on the Transaction Menu, on the Beginning Balances batch, add the outstanding loan amounts, by source, in the loan fund.
To post loan repayments, add a manual transaction batch, transaction type LoanRepay. Enter amounts by source moving from the loan fund as negative amounts, and amounts by source moving to the other investments as positive amounts. Add an earnings batch, transaction type Earn to enter the loan interest.