1.5 Composite Rate for Loans
You can link composite rate codes to loans. Based on the formula maintained at the composite rate maintenance, system derives at a composite rate for floating rate.
To link composite rate code with an Oracle Lending (OL) product, you need to select composite rate code from the Float Rate Input screen (CFDFLTRI).
To link composite rate code with OL contract, select composite rate code from the list of options available for Floating Rate Code in the Loans and Commitment - Contract Input screen (OLDTRONL). During reprice, composite rate code can be linked to a contract by selecting Rate Code available in Consolidate Details reprice screen (OLDREPRC).
Any rate change in Head Office for the index rate codes triggers a re-pickup of the rate for composite rates also and propagate the same to other branches for composite rate code. Branch wise changes to the index rate codes are not considered for re-pickup of composite rate code.
Note:
At any point there can be either a composite rate code or a floating rate code, both cannot co-exist in a single contract. Composite rates are supported for Floating Periodic Auto and Floating Automatic type of loans. Composite rate code definition does not have any impact on the rate revision of a contract.If there is any change in the index codes for a composite rate code, the underlying Floating Automatic type of contracts are impacted and the new rate is arrived based on the derivation logic on that day’s EOD. In case of Floating Periodic Auto type of loans, the rate is derived on the EOD of the revision schedule. There is no impact of back value rate change of the index codes on the underlying Floating Periodic (Auto) type of Contracts.