Depending on the type of product you are working with during origination, the Tools screens enable you to calculate Loan and Vehicle value details.
Tools in the main menu are standalone and information calculated using them can only be viewed.
The Loan Calculator screen facilitates you to calculate various parameters. You can also define flexible repayment options, and generate amortization schedules.
This screen is similar to the Loan Calculator screen opened from Underwriting or Funding screens; however, calculators opened from Tools master tab are standalone and do not link calculations or loan information to any specific application.
The Parameters section allows you to calculate the payment amount, term, interest rate, loan amount, and blended rate. You can also generate a quote based on the details specified.
In the Parameters section, you can select the following parameters:
The Calculate Payment option on Loan Calculator screen calculates the standard payment based on information you provide, such as the amount financed, terms, interest rate and finance fee. You can click Initialize in Loan Calculator screen to clear (or ‘refresh’) the Loan Calculator screen at any time.
To calculate a loan payment
Field: |
Do this: |
Loan Details Section |
|
Product Category |
Select the category as Standard for conventional loan product and Islamic for the Islamic loan product. |
Contract Dt |
Specify the contract date. The system displays current date as the default value. |
First Pmt Dt |
Specify the first payment date. The system displays the date one month from today as default value. |
Loan Term |
Specify the number of payments. |
Maturity Dt |
System automatically displays the maturity date based on the values entered for first payment date, term and billing cycle (i.e. Maturity Date = First Payment Date + Term (based on billing cycle). |
Amt Financed |
Specify the amount financed. |
Pre Paid Fees |
Specify the prepaid fees, if any exist. |
Financed Fees |
Specify the financed fees, if any exist. |
Loan Amt |
View the estimated loan amount: amount financed plus the prepaid fees. |
Balloon Pmt Amt |
Specify the balloon payment amount, if any exist. |
Payment/Finance Charge |
|
Pmt Amt |
View the payment amount. |
Interest Amt |
View the profit amount. |
Finance Charge |
View the finance charged. |
Total of Pmts |
View the payment amount. |
Final Pmt Amount |
View the final payment amount. |
Calculator Options |
|
Billing Cycle |
Select the payment frequency. System supports ‘Biennial’ (once every 2 years) and Triennial (once every 3 years) type of billing cycles. Based on BILL_CYCLE_CD lookup, the billing cycle ‘frequency’ can be defined. During ‘Term’ calculation, the 'Rate' field is always considered as per Year only. System displays an error to refine the input data if the calculation for Biennial term goes beyond 15 years and Triennial term goes beyond 10 years. For additional considerations of Biennial and Triennial term calculations (if any), refer to product release notes available at OTN library. |
Balloon Method |
Select the balloon method. |
Accrual Base Method |
Select the accrual base. |
Time Counting Method |
Select the time counting method. |
Installment Method |
Select the installment method: equal payments or final payment differs. For more information, see the Installment method section in this chapter. |
Bill Method |
Select the billing method as either Level, percentage of principal plus interest, interest only, Fixed Principal plus Interest, percentage of outstanding balance. |
Calendar Method |
Select the calendar method as ‘Hijri’ or ‘Gregorian’ for this loan contract. This field will be enabled only if the product category is selected as Islamic. |
Accrual Start Dt Basis |
Select to define the start date from when the interest accrual is to be calculated for this instrument from the drop-down list. Note: If you select the Effective Date, then the interest is calculated from the Contract date + Start Days (indicated below). If you select the Payment Date, then the interest is calculated based on (first payment date + Start Days (indicated below) minus one billing cycle). |
Accrual Start Days |
Specify the number of grace days after which the interest accrual is to be calculated. Ensure that the number of grace days is less than first payment date. |
Rate |
|
Rate |
Specify the interest rate. Note: For Islamic products this field is displayed as ‘Profit Rate’. |
APR |
View the system calculated the Annual Percentage Rate. |
First Period section |
|
Calendar Days |
View the number of calendar days between contract date and the first payment date. The calendar days will differ based on the calendar method selected. |
Interest |
View the profit accrued for the calendar days. |
When completing Frequency fields, note the following:
For more information on frequency, see ‘Appendix B: Payment Amount Conversions’ section.
The Calculate Interest Rate option back-calculates the interest rate and APR using the amount financed, standard payment and terms. It also provides the amortization schedule of the loan.
To calculate an Interest Rate
You can perform the following activities when the Interest Rate is calculated:
The Calculate Term option back-calculates the term and APR using the amount financed and standard payment. It also provides the amortization schedule of the loan.
To calculate an Interest Rate
You can perform the following activities when the term is calculated:
The system will use this information during the funding process when you select an instrument.
The Calculate Loan Amount option calculates loan affordability of a customer based on term, payment amount and the rate quoted.
To calculate an Interest Rate,
You can perform the following activities when the Interest Rate is calculated:
The Blended Rate option calculates a combined single rate (Blended Rate) for multiple amounts each of at different rates. On selecting this option, system displays the ‘Advances’ section to add multiple records to derive the blended rate. It also provides the amortization schedule of the loan.
To calculate an Blended Rate,
Field |
Do this: |
Amt Financed |
Specify the financed amount. |
PrePaid Fees |
Specify the pre-paid fees. |
Financed Fees |
Specify the financed fees. |
Balloon Pmt Amt |
Specify the balloon payment amount. |
Rate |
Specify the rate. |
Payment Amt |
The system displays the calculated payment amount on clicking ‘Calculate’ button. |
Interest Amt |
The system displays the calculated interest amount on clicking ‘Calculate’ button. |
Action |
Click add button to add next contract details. |
You can perform the following activities when the Blended Rate is calculated:
If the calculation involves flexible repayment options, you can include the same through the following options:
Option |
Description |
Flexible Repayment Allowed |
Select the check box to include a flexible repayment schedule in calculation. On selection, the following sections are enabled.
Based on the selection of repayment type in the subsequent field, any or all of the above sections are enabled to define the required flexible repayment schedules. |
Type |
Select any of the following repayment type that you want to use from the drop-down list.
|
Field: |
Do this: |
Seq |
Specify the sequence number of the repayment schedule. |
Pmt Amt |
Specify the repayment amount borrower agreed to pay during the schedule. |
# of Payments |
Specify the number of payments borrower agreed to pay for stated repayment amount during this schedule. |
Generated |
View if the repayment schedule is generated. |
Field: |
Do this: |
Seq |
Specify the sequence number in which the repayment is calculated.It prioritizes the calculation. |
Option Type |
Select the repayment option type: Step up, step down and bullet. |
Frequency |
Select the frequency of payment. The default value is Term. |
Period |
Specify the loan period. |
# of Adj. |
Specify the number of times the step up, step down or bullet needs to happen. |
Value |
Specify the value. For step down, value ranges from 1 to 99. For step up, value ranges from 1 to 990. For bullet, value ranges from 1 to 99999999. |
Field: |
Do this: |
Seq |
Specify the sequence number of the rate schedule. |
Rate |
Specify the repayment amount borrower agreed to pay during the schedule. |
Start Dt |
Specify the date on which the borrower agreed to make the first payment. |
When you fund the loan application, the system copies repayment schedule information to the loan account on Customer Service screen where it appears in the Repayment Schedule section.
You can use the calculated payment data to derive the Amortization Schedule. Click Amortize in the ‘Amortization Schedule’ section. The system generates an amortized schedule with the calculated data with the following headers:
Field: |
View this: |
Seq |
Payment number. |
Pmt Dt |
Payment date. |
Pmt Amt |
Payment amount. |
Principal Amt |
Component of the payment amount allocated towards reduction of the principal balance. |
Interest Amt |
Component of the payment amount allocated towards reduction of the interest balance. |
Balance Amt |
Remaining principal balance. |
You can click Print Report to extract a PDF version of the generated amortized schedule.
You can generate a summarised report using the calculated loan details in the format of quote with charges, payment structure, financed amount allocation, and amortization scheduled.
In the Loan Calculator screen, click Print Quote. The system generates a PDF document to the default downloads repository consisting of the following information in the respective headers:
Loan Details
The Loan Details section consists of Contract Start Date, Contract End Date, First Payment Date, Total Loan Term, Rate, and Total Loan Amount (Inc. Fee).
Payment/Finance Charge
The Payment/Finance Charge section consists of Total Interest Amount, Finance Charge, Total Of Payments, and Balloon Payment Amount.
Payment Structure
The Payment Structure section consists of details based on the number of payments, billing cycle followed and the payment amount. The payment structure repeats based on the flexible repayment options defined.
Financed Amount Allocation
The Financed Amount Allocation section consists of total amount that can be financed at the specified rate. If there are multiple records included to derive blended rate, then the Financed Amount Allocation varies based on the total number records.
Amortization Schedule
The Amortization Schedule section consists of records in tabular format with the following details:
Depending on the screen from where you have accessed the tools sub tab, you can copy the calculated values to either Contract or Decision tab. If you are in Underwriting stage, you can copy the values to decision tab. Similarly during Funding stage, you can copy the values to contract tab.
Click Copy to Contract/Decision. The calculated details are copied to the respective fields in Contract/Decision tab.
The Vehicle Evaluator screen allows you to calculate the value of a vehicle. You can use the Vehicle Evaluator screen to calculate the value of either a vehicle you are entering as the new collateral or vehicle currently listed as the application’s collateral.
The Vehicle Evaluator screen can be cleared or refreshed at any time by clicking Clear.
To calculate a vehicle value
-or-
Complete the fields in the Vehicle section.
Field: |
View this: |
Year |
The asset year. |
Make |
The asset make. |
Model |
The asset model. |
Body |
The asset body style. |
Usage |
The asset usage or current mileage. |
Weight |
The asset weight. |
In the Valuation (Total Value) block, view the returned information:
Field: |
View this: |
MSRP |
Manufacturer’s suggested retail price value of the asset. |
Total |
Total value of the asset. |
Usage |
Adjusted usage value of the asset. |
In the Base and Attribute Value section, view the returned information:
Field: |
View this: |
Base Retail |
Total retail value of the asset. |
Base Loan |
Base loan value of the asset. |
Base Trade |
Base trade value of the asset. |
Retail |
Retail value of the asset attributes. |
Loan |
Loan value of the asset attributes. |
Trade |
Base trade value of the asset attributes. |
In the Attributes section, view the following information:
Field: |
View this: |
Attribute |
Asset attribute. |
Retail |
Attribute retail value. |
Loan |
Attribute loan value. |
Trade |
Attribute trade value. |
Standard |
Standard indicator. If selected, indicates that the attribute is a standard. |
Package Incl |
If selected, indicates that the attribute is inclusive. |
Selected |
If selected, indicates that the attribute is selected. |
If you want to re-calculate the values using other data in Total Value and Base and Attribute Value section, do the following:
The system updates the values in Total Value and Base and Attribute Value sections.
If you choose, use Attributes section to select or clear the Selected box for attributes of the vehicle. This automatically updates the values in Total Value and Base and Attribute Value sections. (Note: Attribute amounts within brackets reduce the amount in Totals field in the Total Value section.)
To copy the calculated value to the Collateral link
You can copy the calculated value to Collateral link only if you have accessed the tools tab either from Underwriting or Funding Tab. Accessing Tools from the main menu does not support this option.
The system uses calculations on the Vehicle Evaluator screen to complete Valuation sub screen on Collateral link. Any pre-existing collateral is no longer the primary collateral.