2.3 Processing CPR (Conditional Prepayment Rate) Loans

CPR (Conditional Prepayment Rate) Loans are referred to the loans which have the interest on Principal Outstanding fixed till maturity and floating rate thereafter.

Oracle Lending allows you to create a secondary interest component which can be applicable only after the maturity date of a loan on the total principal outstanding. While defining the interest class definition for the secondary interest component, you should specify the amount tag as Principal and the amount category as Overdue OS and the rate type as Floating which gets defaulted to the Interest Class Maintenance screen also.

Note:

Interest computation on Outstanding Principal balance is applicable for Normal-Bearing type of loans.