1.3 Identifying Interest Components for a Product

In Oracle Lending, the interest that applies on a contract (say, a loan) is referred to as the interest component of the contract. Calculating the interest component for a contract is achieved by:

• Creating interest rules.
• Building interest classes (specifically, for the Securities module).
• Associating a product with an interest rule (or an interest class in case of the Securities module). This rule applies on all contracts processed under the product.
• Amending, if required, certain interest details that a contract acquires from the product under which it is processed.

For more information about interest, refer to the Interest User Manual.

Click Interest in the Bilateral Loans Product Definition screen to access the Interest screen. In this screen, you can associate the product you are creating with an Interest Rule. The attributes defined for the interest rule or class that you link to a product default to all contracts processed under the product.

Note:

For products created in certain modules of Oracle Lending, you may have to specify additional interest details. These details have to be specified in the Product Preferences screen of the module. For more information about Products, refer to the respective Products User Manuals.