1.6.5 Defining interest Payment Schedules for the Product
You have to specify the following attributes or preferences through the Product
Preferences screen:
- Mode of liquidation - auto or manual. This can be changed at the time of contract processing.
- Liquidation of back valued schedules upon initiation of a contract. This can be changed at the time of contract processing.
- Re-computation of interest on the future schedules of a contract when a repayment of principal is made before it is due.
- The schedule type - amortized, capitalized or normal
If you do not define any schedules for the product, by default, the contracts involving the product l have bullet (or balloon) schedules. That is, all the components are liquidated at maturity.
Parent topic: Specifying Interest Details for a Contract